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EUROPE EDITION DECEMBER 20 19 europe.businesschief.com

Fawaz Al-Nouri on how to succeed at digital transformation

Agile, intelligent, all-digital growth

“CREATE IT, LAUNCH IT, LEARN FROM IT” Maarten Stramrood, Managing Director of the DigiB innovation hub talks about digital transformation City Focus

Wealthiest individuals in Europe

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FOREWORD

W

elcome to the December issue of Business Chief Europe!

Business Chief Europe rounds off

This month’s city focus is the ‘capital of peace,’ Geneva. We dive into what makes the beautiful metropolis a gem in European culture and busi-

2019 with an issue jam-packed with

ness. As this year comes to a close

the latest in business across Europe

we also look at the top 10 wealthiest

as we hear from Erdinger Weißbräu,

individuals of 2019.

Huhtamaki, Legal & General, Libertex Group, Anheuser-Busch InBev, Stora

It’s been a great year in business

Enso, Tuenti Ecuador and SAP Global.

and from everyone at Business Chief Europe, we look forward to sharing

Our cover feature this month features DigiB. Maarten Stramrood, CDO

the latest business news with you in 2020.

at Brenntag Group and Managing Director of the DigiB innovation hub,

Do you have a story to share?

discusses how the world’s largest

Please don’t hesitate to get in touch

chemical and ingredient distributor

and you could be featured in our

is progressing with its ongoing digital

2020 issues.

transformation.

Enjoy the read! Elsewhere in the issue, Business

Amber

Chief catches up with Martyn Bridges, Director of Technical Communication and Product Management, who breaks down the evolution of Worcester Bosch’s

amber.donovan-stevens @bizclikmedia.com

staff training. 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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E z

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EDITOR-IN-CHIEF

AMBER DONOVAN-STEVENS EDITORIAL DIRECTOR

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CONTENTS

12 THE EVOLUTION OF STAFF TRAINING

30


42

52 62 70 City Focus

GENEVA

80 Evolving the journey: putting your carbon footprint at the top of the agenda

WEALTHIEST INDIVIDUALS


CONTENTS

112 96

Tuenti Ecuador

SAP Global

126 Stora Enso

146 Anheuser-Busch InBev


176 Libertex Group

158 Legal & General

190 Erdinger Weißbräu

208 Huhtamaki


12

BRENNTAG GROUP: A UNIQUE DIGITAL STRATEGY WRITTEN BY

HARRY MENEAR PRODUCED BY

LEWIS VAUGHAN

DECEMBER 2019


13

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DIGIB

Maarten Stramrood, CDO at Brenntag Group and Managing Director of the DigiB innovation hub, discusses the ongoing digital transformation of the world’s largest chemical and ingredients distributor

A

wave of digital transformation is sweeping across the global business landscape, driven by the rapid technological advance-

ments of Industry 4.0 and the Information Age. 14

From cutting edge robotics to paperless invoicing, companies across every industry are racing to galvanise meaningful change that improves efficiency, increases transparency, and translates into greater value for employees, suppliers, partners, customers and shareholders. Digital transformation is no mean feat. It can be an exhaustive, top-down process that reshapes the internal workings, culture and even purpose of an organisation; it can be a revolution. More often, however, the process more closely resembles something different – something slower, and more considered: evolution. Embodying this process is German chemical and ingredients distributor Brenntag Group and its innovation hub, DigiB.

DECEMBER 2019


15

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DIGIB

“Create it, launch it, learn from it” 16 “When it comes to digitalisation, our approach is to create it, launch it,

— Maarten Stramrood, CDO, Brenntag Group, Managing Director, DigiB hub

and learn from it,” explains Maarten Stramrood, Chief Digital Officer at

over 580 locations across 76 countries,

Brenntag Group and Managing Director

Brenntag’s decision to establish the

of the DigiB hub in Amsterdam. “We’re

DigiB hub is a bold affirmation of the

not trying to wait until we have a perfect

need for even large-scale companies

situation; we would rather launch some-

dealing with physical products and

thing fast and do it 92% right instead

services to rapidly accelerate their

of delivering a platform or delivering

technological progress. “The business

a project which might be 100% right

we are in is very physical, but you can

but which gets endlessly delayed

enhance and improve the business in

to the point that, by the time it’s ‘ready’,

parts of the supply chain by using

it’s been out of date for two years.”

digital technology,” explains Stramrood.

For a distribution company with more

“I think this is the kind of definition that

than 16,600 employees operating in

we have for digital transformation.”

DECEMBER 2019


CLICK TO WATCH : ‘#ONEBRENNTAGMINUTE WITH MAARTEN STRAMROOD’ 17 Founded in 1874 as an egg wholesaler,

We sat down with Stramrood to find out

Brenntag expanded into chemical distri-

more about his role in the DigiB hub and

bution in 1912 and today leads the market

its ongoing endeavours to accelerate

on a global scale. “We serve around

the digital evolution of Brenntag.

195,000 different customers, from huge

“We started about two years ago.

accounts like Shell or BASF down to

I was – I don’t know – employee number

small customers who might only buy one

four. We were basically starting from

ingredient each year,” says Stramrood.

scratch,” recalls Stramrood. With an

“Our added value comes from the fact

extensive background in the telco indus-

that we have a dense global distribution

try, Stramrood reflects that he had spent

network that means we can deliver to

the past ten years focusing on digitalisa-

both large and small clients anywhere in

tion, building ecommerce channels and

the world.” The company has a presence

building teams. “Basically, I went through

in almost every manufacturing industry,

a few acquisitions and a couple of big

from food and life science to oil and gas.

mergers in the space of two years, and e uro pe .busi ne ssc hief. com


KEY INSIGHTS FROM A CORPORATE STARTUP “DigiB is building the digital future of Brenntag. We opted for a launch-and-learn approach, so that we can easily make adjustments based on feedback and demonstrate the added value of digital applications more quickly.” Maarten Stramrood, Chief Digital Office Brenntag

TECHNOLOGY, DATA, CREATIVITY.


ON A MISSION TO REINVENT B2B Digital transformation is a necessary step for many

er-facing platform providing consumers with the option

businesses but there is not just one way of accom-

to order products digitally with access to individual docu-

plishing this. At one end of the spectrum, companies

mentation, historic purchasing data and other self-service

are increasingly selling products online, while others

components. Since its launch six months ago, Brenntag

still operate in analogue. Digital agency Dept now

Connect is now live in Germany and North America with

successfully offers digital transformation as one

other countries to follow shortly.

of its services following the development of DigiB, the start-up offshoot of chemical distribution manufacturer, Brenntag.

MARKETING ACTIVITIES IN ACTION These digital marketing transformations have helped

Brenntag owns 500 warehouses worldwide which are

elevate Brenntag to the position of global market leader

used to store and distribute chemical products. Though

in chemical distribution – a sector that has remained largely

the company is forward-thinking and guarantees safe

untapped by the digital evolution. Dimi Albers, CEO at Dept,

and sustainable operations, it still largely operates

said: “The DigiB infrastructure is one of the most advanced

as a traditional B2B company – with many orders made

architectures we have. A lot of time was spent on continuous

via telephone and e-mail. DigiB launched in Amsterdam

integration, which makes it possible for Brenntag to onboard

in 2017 after an initial period testing concepts in Berlin.

new developers and roll out functions quickly to make

The corporate start-up was founded to stand apart from

the business more successful.”

its parent company and act as a platform for working on new digital innovations as well as allow Brenntag to

LOOKING FORWARD

be more efficient and prioritise their customers’ experience.

By setting up DigiB as an innovation hub outside of the parent

FINDING THE RIGHT PARTNER AND PLATFORMS

processes inherent to an international B2B player and remain

Dept came on board to facilitate Brenntag with the design and development of new platforms, Brenntag Source and Brenntag Connect, as well as digitise and centralise its analogue processes with its team. Albers: “Our team possesses a range of skillsets to provide us with the flexibility to keep up. We know that we can

company, Brenntag is able to optimise the complex digital competitive. Dept helped the company transition from a traditional company to a digitally-minded one seamlessly. Stramrood said: “DigiB is building the digital future of Brenntag. We opted for a launch-and-learn approach, so that we can easily make adjustments based on feedback and demonstrate the added value of digital applications more quickly.”

provide teams with bolstered creativity, technology and data, which is why it was a no-brainer to help DigiB across all three of these axes. From brand development to digital products and digital marketing, there was no aspect of this process that we weren’t comfortable getting involved with.” Brenntag Source is an innovative tool that helps to boost the company’s internal efficiency by ensuring that data can be easily shared across the company’s subsidiaries.Brenntag Source allows them to retain a local presence within each market and enables Brenntag to use its purchasing power more effectively to optimize spend. “The fact that we can enjoy savings with a relatively simple innovation illustrates the incred-

Maarten Stramrood, Chief Digital Office Brenntag

Dimi Albers, CEO Dept

ible potential digital transformation offers us,” said Maarten Stramrood, Chief Digital Officer at Brenntag. Brenntag Connect, on the other hand, is a custom-

DEPTAGENCY.COM


DIGIB

20

thought it might be time to look for some-

distribution firms on the planet with

thing more stable. Whenever there’s a

sweeping digital change. One of the

merger, you lose all the best people in

things that makes the DigiB hub special

your team, who go on to get their own

is its autonomy from Brenntag’s wider

teams. Then you have to build a brand

operation. The hub is set up as an inde-

new team. After a few mergers, I thought

pendent entity, giving Stramrood the

it looked like I was pretty good at building

power to expand his team, oversee HR

new teams,” he laughs. “Then, Brenntag

and develop new policies and processes

came calling.”

in the name of finding ways to accelerate

For the past two years, Stramrood

the digital evolution of the wider organi-

has built an 80-person team across

sation. “Not a lot of companies have a

Europe, the US and Asia Pacific focused

setup like ours,” he says. “A lot of them

on starting and accelerating digital

have a little innovation hub tucked away

initiatives, and infusing one of the largest

inside the larger organisation. DigiB

DECEMBER 2019


feels like a little startup. Of course, we’re

Amazon in their personal lives, and

funded by Brenntag, but the impact we

they’re starting to expect the same

make and the way we approach things

kind of convenience when doing busi-

is very entrepreneurial.”

ness with a company like Brenntag.

As a strategist with extensive B2C experience, Stramrood acknowledges that a lot of the drive towards digi-

The big challenge for a company like ours is to deliver on that expectation.” This expectation of a digitally

talisation is coming from that sector.

empowered experience is one of

“What we hear when we talk to our

the primary drivers behind the three

customers and suppliers, is that more

pillars around which DigiB’s efforts

and more people are expecting the

are centred. “We’re really focused

way that they do things in their per-

on experiences, on the customer and

sonal lives to be the way they do things

employee side of things, in order

in their professional lives as well,” he

to build smoother relationships,”

explains. “People use companies like

explains Stramrood.

E XE CU T I VE PRO FI LE

Maarten Stramrood Stramrood is a seasoned digital entrepreneur, mobile veteran, manager and strategist with a very broad background. He is an expert in go—to—market strategies, digital marketing and sales, conversion, data science, digital care, digital driven marketing, data driven operations, operational management, product management, business development, digital disruption and product and process design. He has worn many hats throughout his career— entrepreneur: entrepreneur, CCO, manager, product manager, marketeer and strategist.

e uro pe .busi ne ssc hief. com

21


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1874

Year founded

$15bn+ Revenue in US dollars (2018)

16,600 Number of employees

tests across multiple dimensions of their portfolios. “A project manager in Poland can benchmark their procurement data against Brenntag’s US figures or against a competitor, or they can compare two different suppliers. This gives us new insights to strengthen our global position in negotiations,” says Stramrood. The goal of Brenntag Source is also, Stramrood explains, to improve collaboration across the many regional branches of Brenntag. “We’re trying to enhance the inter-company trading, between our subsidiaries, for example

BRENNTAG SOURCE

the BeNeLux and German organisa-

The first pillar corresponds to DigiB’s

tions, because this will optimise our

goal of improving the abilities and

global stock position.”

experience of Brenntag’s employees. Brenntag Source is a portfolio of

BRENNTAG CONNECT

internal applications that harness the

The most impactful of the pillars,

company’s data and deliver insights

Brenntag Connect, is the company’s

back to its employees. “We have a lot

ecommerce portal, designed and

of pricing trends and other data points

supported by DigiB. Stramrood

from all across the globe which can be

characterises the portal as an ecom-

very useful to any Brenntag employee,”

merce knowledge and self-service

Stramrood explains. One of the applica-

portal. Due to the highly regulated

tions, Brenntag Explore, gives company

nature of some of the chemicals and

project managers the ability to perform

ingredients Brenntag deals in, only

highly customisable benchmarking

existing Brenntag customers have e uro pe .busi ne ssc hief. com

23


DIGIB

access to the portal, and “becoming a Brenntag customer means going through an intensive onboarding process.” For those that have already been cleared, Brenntag Connect is a powerful tool that can access the company’s product portfolio, place orders, automate repeat business, access track and trace functionality and an array of other contextual information. The service is currently live in the US, Germany, Benelux and Scandinavia. “We have a substantial number of cus24

tomers already on the platform and it’s growing rapidly,” enthuses Stramrood.

DIGITAL MARKETING For those who aren’t already onboarded as Brenntag customers — a process that the DigiB hub is focused on automating and streamlining as much as is responsible — the third pillar that Stramrood and his team are working on is the publicly accessible face of Brenntag Connect, which is tied into a digital marketing campaign. The past two years, like any bold endeavour, haven’t been without setbacks and challenges. “The ride has definitely been bumpy at times, from DECEMBER 2019

“We have a substantial number of customers already on the Brenntag Connect platform and it’s growing rapidly” — Maarten Stramrood, CDO, Brenntag Group, Managing Director, DigiB hub


technology to cultural transformation,” says Stramrood. The digital acceleration that DigiB is working to cultivate has also presented its obstacles. “With the launch of new digital offerings, we’re not waiting until we’ve got a perfect situation; we’re just trying to get customers on the platform and see if things work,” he explains. “It’s a challenge in itself, because of course you don’t want to disappoint your customers. On the other hand, we’ve found that if you’re open with them, they’re often very accepting, and some are even keen to help you improve the platform. In a traditional organisation like Brenntag, this is a big thing.” No transformation happens in a vacuum. From recruitment to design to the launch and optimisation of new products and processes, Brenntag and DigiB have embraced the expertise and assistance of experienced, industryleading partners. When DigiB first got started, Stramrood found himself in need of a large, experienced team to start working on the hub’s vision. “We wanted to make a big impact and not have to start by recruiting one developer at a time,” he explains. “This is why we did a pitch e uro pe .busi ne ssc hief. com

25


Launch your Customers’ Experiences into the Future. Today. Win the customer. Own the platform. Activate the data. Win the client to build the direct-to-consumer engagement. While data is becoming the new asset, it’s all about building the platform to connect the ecosystem in delivering relevant value to customers. Activate the data to generate insights and translate into meaningful customer experiences and profitable business. www.deloitte.nl Š 2019 Deloitte The Netherlands


for a software development agency and ended up choosing Dept. it offers a great combination of developers and creatives, which is what we desperately needed.” Brenntag has grown rapidly, organically and through acquisitions during the past few years. “Against the background of the numerous acquisitions and Brenntag’s existing business landscape,

“We’re really focused on experiences, on the customer, supplier and employee side of things” — Maarten Stramrood, CDO, Brenntag Group, Managing Director, DigiB hub

especially in EMEA, the company now is putting energy into a single back-end

we discovered our new CMS was going

platform,” Stramrood explains. “Now,

to be a major thing, that’s when we

we’re trying to standardise this process,

decided to go with BloomReach.”

which is why Brenntag decided to bring

The challenges of overcoming inter-

Deloitte on board. They’re advising us

market regulation, and varied standards

on how to adopt this more standardised

across dozens of countries, also

approach, because if we want to accel-

prompted Stramrood to bring Vasco

erate the digitalisation of the entirety

Consulting on board. “One big thing

of Brenntag, we need to find ways to

is the issue of complexity, because

speed up the process.”

we work across multiple countries in

DigiB is working with trusted partners

parallel, so the programme manage-

to better build out its core offerings.

ment itself is very complicated. This

“When we start building something, like

is the reason that we started work-

Brenntag Connect for example, we try

ing with Vasco Consulting, because

to make it as open source as possible.

they have done similar types of

However, if the demands placed upon

programmes before: multi-country,

it become more serious, we always look

multi-backend integration projects.”

to embrace more mature, professional offerings,” explains Stramrood. “When

Stramrood is excited to see the work done by DigiB gaining traction in the e uro pe .busi ne ssc hief. com

27


DIGIB

A customer journey should be as simple as crossing a bridge. There is always a solution, no matter how complicated the challenge! Please follow us on Linkedin for interesting blogs and surveys. Follow us

+31(0)851307990 vasco-consult.com


29 wider business, but acknowledges

digitising and optimising the internal

that there is still a long way to go.

processes of Brenntag itself.”

“It’s quite thrilling, this evolution and

Step by step, driven by the mani-

digital enhancement of Brenntag.”

festo of “create it, launch it, learn

Looking to the future, the three pil-

from it,” DigiB is using its unique

lars of Connect, Source and the

identity, capabilities and trusted

Digital Marketing will remain at the

network of partners to continue

centre of everything that DigiB does

accelerating digital evolution of the

to realise this evolution. “It’s going to

world’s number one chemical and

be our main focus for the next year,

ingredients distributor.

as we go into 2020,” he explains. “In the future, we’re looking into things like speeding up our onboarding process and exploring ways to use IoT to simplify aspects of the business. The long-term goal is to move into e uro pe .busi ne ssc hief. com


LEADERSHIP

30

DECEMBER 2019


THE EVOLUTION OF STAFF TRAINING Business Chief speaks with Martyn Bridges, Director of Technical Communication and Product Management, Worcester Bosch, to discuss the evolution of its training centre WRITTEN BY

AMBER DONOVAN-STEVENS

e uro pe .busi ne ssc hief. com

31


LEADERSHIP

M

artyn Bridges is the Director of

Technical Communication and Product Management at Worcester

Bosch, the leading manufacturer of boilers in the UK and subsidiary of Robert Bosch. In an exclusive Q&A with Business

Chief, Bridges provides insight into the development of Worcester Bosch’s training centre, which started from the ground up and has transformed into the largest training centre in the UK. The heating product manufacturer has 32

provided training to over 16,000 installers across four training academies, 80 colleges and eight mobile trainers. According to Bridges, the key to the training centre’s success is the way in which it consistently supports, teaches and nurtures its employees.. I understand that you have been working with Worcester Bosch for several years. Could you tell me a little bit about how you came to your role? I’ve been here 34 years now, having joined in the mid-1980s when it was called Worcester Engineering. We were much smaller then, with around 100 employees selling approximately 15,000 boilers annually. DECEMBER 2019


33

e uro pe .busi ne ssc hief. com


LEADERSHIP

34

I’ve grown up with the company,

I’ve worked in a range of different

which has taken me to the role I have

roles at Worcester Bosch, and in 2006

today. When I joined, the business

I was made a director of the company.

had been in operation for over 20 years and had historically been

What are your main priorities in

known as an oil boiler manufacturer.

your role?

It then moved into combination gas

My priorities haven’t really changed

fired appliances, which not many

that much for the last 30 years – our

companies in the UK were doing.

overwhelming priority is to ensure the

I thought this was a revolutionary,

customer gets a good deal. We want

pioneering thing to do and I wanted

to see our boilers made to impeccable

to work for a company which was

standards, and installed professionally,

forging ahead.

so the end user has reliable heating

DECEMBER 2019


and hot water at an affordable price that lasts the test of time. We want to ensure our boilers provide a good life and a good deal, so our obsession is on the customer. Worcester Bosch has the largest training centre in the UK. Could you share the strategy at the heart of this facility? When I joined Worcester, we didn’t have a training centre. We trained installers on our boilers, they weren’t the normal sort of boiler. However, it wasn’t a plush facility, just a boiler

“Knowledge development is an ongoing task, and everyone embraces it” — Martyn Bridges, Director of Technical Communication and Product Management, Worcester Bosch

plumbed in and working in our quality control department. From the early days, we knew we had to assist E XE CU T I VE PRO FI LE

Martyn Bridges Bridges is the Director of Technical Communication and Product Management at Worcester Bosch, the leading manufacturer of boilers in the UK. He has been working at the company for over 30 years, having first joined as a Technical Service Engineer in 1986. Bridges represents Worcester Bosch on a number of industry panels including the Society of British Gas Industries, OFTEC, the HHIC, the Institute of Plumbing and Heating Engineers and the Institute of Domestic Heating Engineers.

e uro pe .busi ne ssc hief. com

35


LEADERSHIP

the installer on how to fit, commission, and repair them. Soon after I joined, we built training centres at our Worcester headquarters and just outside of London at Amersham. We’ve always had a belief that the training not only gives the consumer the best professional installers, but that we also build a relationship with the installer during their time with us. In more recent years we’ve built a new training centre and we now must train installers on several other technologies, such as heat pumps and

36

solar. We’ve also broadened our scope to train installers on topics such as finance skills, marketing and health and

“Excellent staff training helps with the retention of staff and we’re always looking for the next technology to educate our employees on” — Martyn Bridges, Director of Technical Communication and Product Management, Worcester Bosch

DECEMBER 2019

safety. We provide them with all the training they need to run their business effectively and to the letter of the law, including the qualifications they need to legally practice. How does the training you provide assist with maintaining Worcester Bosch’s competitive edge? We’ve got a training team of nearly 30 people now, which has grown because of the amount of demand we have. We train small groups of around


CLICK TO WATCH : ‘WORCESTER BOSCH – WHO ARE WE 2019’ 37 six to eight installers to provide a

mostly on the product itself. We’re

personal touch and they are all very

always looking around to see where

hands-on with the products that we

we can improve the general knowledge

make. It’s a labour-intensive thing to

base of our teams. Knowledge

do but it is a very beneficial process

development is an ongoing task,

for both parties.

and everyone embraces it.

As tech is constantly changing,

How do you ensure that you attract

how do you ensure that your staff

and retain the right employees?

are always up to date with the latest

We are a well thought of brand –

technology advancements?

number one in the marketplace –

Much of the training we offer to installers

with a pretty happy and contented

is also undertaken by staff. Employees

workforce so the attraction is

are set a certain amount of days a year

generally self-fulfilling. Retention relies

where they must complete training,

on keeping everyone happy and we e uro pe .busi ne ssc hief. com


LEADERSHIP

“The Bosch group has pledged to be zero carbon by next year, so we are recycling everything we can” 38

— Martyn Bridges, Director of Technical Communication and Product Management, Worcester Bosch

aim to provide good working conditions,

Worcester Bosch has a strong focus

and investment in training and benefits.

on sustainability, how does the

We also try to look after our employees.

development and training of your

For example, we recently signed the

staff contribute to this journey?

Time to Change pledge to ensure

The Bosch group has pledged to be

we’re providing support and awareness for our employees’ mental health.

zero carbon by next year, so we are recycling everything we can. For example, the heat produced by boilers in the training centre is recycled in storage buffers and then used to heat the buildings in which we’re working. The Bosch environmental policy is well

DECEMBER 2019


they integrate. For example, water treatment systems complement central heating systems and we have help from companies such as ADEY, Fernox and Sentinel on that front. How does excellent staff training position Worcester Bosch for the future? It helps with the retention of staff and we’re always looking for the next technology to educate our employees on. For example, we’ve trained every member of our team on our new hydrogen boiler development and why we’re doing it. We also constantly communicate known and is employed in every

the success of the company to our

Bosch factory.

staff. This happens via a monthly communication meeting where nearly

What core partners are helping deliver

2,000 people are indirectly brought

solutions in the training you provide?

up to speed on what we’re up to, how

We bring in experts on an as-and-

we’re performing, changes in regulation

when-needed basis. We are self-

and our plans for the future.

sufficient and make most of what we sell, but we have training engineers from manufacturers who provide complementary products and join our training sessions to demonstrate how e uro pe .busi ne ssc hief. com

39


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TECHNOLOGY

44

DECEMBER 2019


DATA ANALYTICS FOR GOOD – THE NEXT FRONTIER David González, Head of Big Data and Advanced Analytics for Vodafone Business, on the opportunity to use big data for social good WRITTEN BY

DAVID GONZÁLEZ

e uro pe .busi ne ssc hief. com

45


TECHNOLOGY

I

n 2018, data visualisation company

DOMO predicted that by 2020,

1.7MB of data will be created every

second for every person on earth.

The new year is now only one month away, and this explosion of data is showing no sign of slowing down. As digitalisation becomes the norm across more industries and IoT adoption continues, even more data will be generated. Industries like healthcare and manufacturing have been turning data into insights that drive improvements 46

to customer service, processes and products. Outside of these use cases, could this data driven approach also be applied to tackle social challenges? across myriad areas of modern life,

MOVING BEYOND THE ENTERPRISE

granting us the ability to then use

It would be short-sighted to assume

those insights to address existing and

that data analytics can only be

future problems. Aggregated and

relevant within the enterprise. Im-

anonymised large-scale data has

proved connectivity and advances in

the potential to generate immense

IoT are creating vast volumes of data.

positive social impact.

As more people interact with these

For example, managing the after-

connected devices, the data gener-

math of natural disasters can consume

ated will increase exponentially to

resources when time is precious.

represent every aspect of society.

Planning aid in advance is key, and data

This will enable us to gain a better

analytics can be used to inform a plan

understanding of how processes work

to assist those in need. Governments

DECEMBER 2019


47

and NGOs need to know where the impacted people are, in which direction they are moving and how the environment is changing. Only then can they respond effectively and efficiently to the effects of the disaster. In a similar way, data analytics can be applied to protect public health by predicting the spread of a pandemic. Accurate predictions allow authorities to put measures in place which mitigate the effects and control the incidence of new cases.

“Improved connectivity and advances in IoT is creating vast volumes of data” — David González, Head of Big Data and Advanced Analytics for Vodafone Business e uro pe .busi ne ssc hief. com


TECHNOLOGY

“Unlocking the full potential of data will require a concerted effort between different organisations” 48

— David González, Head of Big Data and Advanced Analytics for Vodafone Business

CLOSER TO HOME Data can make a difference on a global scale, but what about in urban centres? Today, 55% of the world’s population lives in such an environment. This proportion is expected to increase to 68% by 2050. That’s another 2.5bn people dwelling in urban areas. This increase will place significant demands on infrastructure, retailers, banks, healthcare systems and educational institutions. In addition, preventing crime will also be a top priority. There is the potential for huge social impact, improving the management of cities and the quality of life for citizens. For example, data collected by law enforcement can improve safety by better predicting crime spots and implementing measures such as improved lighting or CCTV. Preparing for this scenario begins now, and it starts with understanding the movement of people. Governments and businesses alike can use this information to make significant decisions. In transport, for example, it can inform where to build bridges and footpaths or place electric car charging points.

DECEMBER 2019


CLICK TO WATCH : ‘WHAT COULD 5G DO FOR YOUR BUSINESS?’ 49 The success of these initiatives relies

sensitive information, such as individual

on accurate insight into the needs

location or health status. Where will

and habits of urban populations. This

this data be stored and how will it be

must start with democratising access

collected? Who will ultimately be

to population data intelligence, in

responsible for keeping it safe from

a secure and anonymised way that

malicious actors? How can citizens

protects the privacy of future citizens.

be assured that their data will be anonymised and only be used for the

KEEPING DATA PRIVATE

stated purpose? The answers to these

The main concern about widespread

questions will affect the extent of the

data collection is data privacy; many

public’s support. Transparency in

high-profile companies have come

communicating with the public will

under scrutiny for their use of customer

be critical to the success of any data

data. However, it becomes more

analytics initiatives, even if the purpose

concerning when it is related to

is for good. e uro pe .busi ne ssc hief. com


TECHNOLOGY

WORKING TOGETHER TO KEEP DATA SAFE Unlocking the full potential of data will require a concerted effort between different organisations. Those who collect the data must work together to ensure the insights are used by the most appropriate organisations who are able to effect change. Vodafone is part of a wider alliance – the GSMA’s Big Data for Social Good initiative – where mobile operators share insights with NGOs to build an ecosystem that supports timely 50

planning and response. Location intelligence – where location-based

“The increasing digitisation of industries provides the best opportunity for data to be mined for social good” — David González, Head of Big Data and Advanced Analytics for Vodafone Business DECEMBER 2019


insights are used to solve problems and identify new opportunities – plays a role here, building a safer, more sustainable world. The increasing digitisation of industries provides the best opportunity for data to be mined for social good, as a positive ‘side effect’ of collection. In addition to making services more efficient, streamlined and personalised, the same data can be used to predict how populations move and react. As urban areas grow, these insights will be critical to informing how the safety and health of citizens will be managed. It is important that the right decisions are made now, regarding data collection and analytics. Only then will we be prepared to tackle the social challenges of the future.

e uro pe .busi ne ssc hief. com

51


PEOPLE

54

Talent retention: why traditional methods are no longer enough Business Chief meets with Jen Scherler Gormley, HR Lead (UK), Cisco to discuss strategies to retain, source and develop talent WRITTEN BY

GEORGIA WILSON

DECEMBER 2019


55

e uro pe .busi ne ssc hief. com


PEOPLE

C

urrently in the UK, 43% of employers feel it has become more difficult to fill job vacancies over the last 12 months,

with 31% seeing salary increases of more than 2% being used as an incentive for recruitment and retention of talent. When it comes to recruitment and talent retention, Jen Scherler Gormley, HR Lead

(UK), Cisco, believes that the flatline approach of annual appraisals and ratings for objectives and development simply isn’t enough. Performance ratings disenfranchise a large 56

proportion of employees, creating year—long labels regardless of a person’s change in performance over the next 12 months at a company. “For us, recruitment and talent management is about empowering people to be their best selves, as well as bringing everyone together to create an environment where individuals and teams can thrive. Five years ago, we revived our performance management processes by ditching annual appraisals and ratings.” Gormley further comments that the organisation’s move to eliminate annual appraisals from its talent strategy in 2015 has yielded positive results for its talent retention, seeing higher engagement from existing employees, as well as providing a strong differentiator for attracting new talent. DECEMBER 2019


57

Being ‘conscious’ is an important part of workplace culture, states Gormley. With 59% of UK workers looking to move jobs as a result of being undervalued, having no career progression and having unsupportive managers. With this in mind, it is important to focus on three key entwined areas: environment, the unique characteristics of the organisation and the specific experience of individuals, in order to manage and lead a positive culture. To incorporate this into its organisation, Cisco has e uro pe .busi ne ssc hief. com


PEOPLE

implemented a digital platform that

coaching. Performance is ultimately

enables weekly connections in relation

personal to each individual and it is

to what support is required and what

important that continuous conversa-

individuals loved and loathed about the

tions take place between employees

week, to aid its elimination of annual

and their leaders.”

appraisals. “We call this ‘check-in’,” says

58

According to Gormley, a workplace’s

Gormley. “It has been adopted at all levels

culture should be built on a foundation

of the organisation – including our CEO

of accountability, empowerment and the

and executive leadership team – providing

freedom to speak out to achieve goals

important information to drive a different

within an organisation. Transparency

kind of conversation with team members

and empowerment is a driving force to

providing greater regularity, as well as

build trust, within an organisation and

allowing in—the—moment redirection

is a key element of ensuring that talent is

of work, support and continuous

retained and thriving.

“Fundamentally, inclusion is a bridge to connect diverse perspectives, providing a platform for new ideas and inspiring innovation” — Jen Scherler Gormley, HR Lead (UK), Cisco

DECEMBER 2019


CLICK TO WATCH : ‘WORKPLACE TRANSFORMATION AT CISCO WITH WEBEX TEAMS’ 59 When looking to source talent,

fundamental to building and maintain-

Gormley highlights the importance

ing a culture of continuous learning as

of combining human connection

well as attracting talent that aligns

with innovation to not only develop

with our values.”

employees, but also the business.

Inclusion and diversity is essential

Industries are continuously changing

to innovation. When sourcing, main-

and adapting, and organisations

taining and retaining talent, it is key to

shouldn’t shy away from utilising

ensure an organisation is inclusive.

multiple forms of employment such as

“We have found that certain language

apprenticeship programmes, alongside

used in job profiles could dissuade

traditional employment methods,

female talent from applying. Therefore,

as well as utilising transferable skills.

we have implemented a tool that

“There is no one answer to this, but

analyses the language in our job

we’ve found that the human connec-

descriptions to ensure that we are

tion intertwined with innovation, is

attractive to a diverse pool of potential e uro pe .busi ne ssc hief. com


PEOPLE

applicants. In addition, every year, we take part in Girls in ICT Day to encourage a higher percentage of girls to become a part of the industry by utilising technology to communicate with and support girls across the globe,” says Gormley. “Fundamentally, inclusion is a bridge to connect diverse perspectives, providing a platform for new ideas and inspiring innovation.” Internal changes within a company can put a strain on organisations. With this in mind, Gormley believes it is 60

important to maintain frequent communication between leaders and team members to ensure that workplace

“We have found that certain language used in job profiles could dissuade female talent from applying” — Jen Scherler Gormley, HR Lead (UK), Cisco

culture doesn’t get left behind in the process. Companies should instead utilise internal changes to enhance communication and manage talent. “We care a lot about our culture. We are driving for an environment where healthy conversations happen between individuals and teams, where no one is isolated and each person feels able to proactively support their colleagues,” says Gormely, who feels its implementation at Cisco provides a level of transparency she has not seen

DECEMBER 2019


61

in other companies, resulting in greater

an organisation. As a result of

engagement from employees to actively

incorporating these foundations,

participate in conversations regarding

organisations should see an increase

experience and individual growth.

in innovation and inclusion, as well

Ultimately, when it comes to talent

as experiencing greater engagement

retention, traditional methods are no

when it comes to individual growth

longer enough to encourage employees

and performance.

to stay with a company for the long term. Companies need to be more conscious of their employees by maintaining human connection and communication, in order to drive accountability, empowerment and freedom within e uro pe .busi ne ssc hief. com


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

64

Evolving the journey: putting your carbon footprint at the top of the agenda David Griffiths, Senior Product Marketing & Strategy Manager at retail supply chain Adjuno, looks at reduction of carbon footprints in the retail industry WRITTEN BY

DECEMBER 2019

DAVID GRIFFITHS


65

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

66

C

onsumers are thrilled by the

tainability efforts of their favourite retail-

speed and flexibility of e-com-

ers. In fact, a third of consumers are

merce. But the proliferation of

now choosing to buy from brands they

new retail channels and choices

believe are doing social or environmen-

is changing their purchasing behaviour,

tal good. That’s a large proportion of the

and ultimately, that’s taking its toll on the

customer base that a retailer risks los-

environment. With next-day, same-day

ing if they don’t meet this expectation.

and one-hour delivery options starting

The good news is that retailers across

to be commonplace with many retail-

the world are recognising this and

ers, consumers are fast becoming used

starting to step up with commitments to

to getting their chosen product not just

address the sustainable agenda. But are

quickly, but almost instantly.

they doing enough?

At the same time, consumers are

With the battle moving to the supply

placing greater emphasis on the sus-

chain and concerns growing around air

DECEMBER 2019


67

pollution and greenhouse gases, brands now have a responsibility to reduce their carbon emission levels and drive the creation of the green supply chain.

INDEPENDENTS VS RETAIL GIANTS Independent retailers are currently rising above the competition when it comes to low carbon emissions. Transport is the second highest emitter of greenhouse gases, therefore the independents who have shorter

“A third of consumers are now choosing to buy from brands they believe are doing social or environmental good” — David Griffiths Senior Product Marketing & Strategy Manager, Adjuno

product journeys will naturally have a smaller carbon footprint. It isn’t as easy e uro pe .busi ne ssc hief. com


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

“Brands now have a responsibility to reduce their carbon emission levels ” — David Griffiths Senior Product Marketing & Strategy Manager, Adjuno

for the retail giants. With longer journeys, more players in the supply chain and bigger product ranges to contend with, retail giants have a harder time of reducing their carbon footprint. But it certainly is possible. Packaging should be at the top of every retailer’s list when it comes to making strides towards sustainability. A strategic approach to transit packaging that optimises carton, pallet and container fill will not only reduce packaging costs, with higher standards enforced, but it will also decrease shipping costs as a result of better container

68

DECEMBER 2019


CLICK TO WATCH : ‘SUPPLY CHAIN SOFTWARE – ADJUNO SCM SOLUTIONS’ 69 utilisation, with less empty space being

ing types used, and consequently the

shipped. Not only does this reduce

reduction in the amount of containers

the number of journeys that need to

and DC space required. The retailers

be made, but it will also enable more

that are serious about reducing their

efficient use of DC space. Ultimately

carbon footprint have the tools at their

though, a strategic approach to pack-

disposal to make it happen, with simple

aging reduces waste and therefore

changes making a world of difference

improves the carbon footprint, putting

to carbon-conscious consumers.

retail giants one step closer to meeting their sustainability goals. Many large retailers have already

SHOUTING ABOUT SUCCESS At the start of this year, Aldi claimed

seen success in this area too, with

it was the first grocer in the UK to be

effective changes to their packaging

carbon-neutral, detailing that it had

compliance resulting in huge reduc-

cut greenhouse gas emissions per

tions in the number of different packag-

square metre of sales floor space by e uro pe .busi ne ssc hief. com


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

53% since 2012. That’s a big statement to make, but it shows Aldi’s commitment to making changes that have resulted in extremely positive outcomes. The fact is that changes are being made, but few retailers are shouting about their behind-thescenes success, leaving the issue of reducing carbon footprint still far lower than it should be on the retail agenda. The lack of visibility for consumers is weakening the message and hindering their ability to trust the brand, so whilst retailers must ensure 70

that first and foremost they are making sustainable changes for the right reasons, they also need to make sure they are letting consumers know what is really happening. Simple changes to packaging will show consumers that the retailer is making an effort, for example, if a retailer can confidently say in its marketing materials that all items from one brand are being shipped into the store using 50% less packaging, every carbon-conscious consumer would know that steps are being taken and be more likely to buy from the retailer as a result.

DECEMBER 2019


“Simple changes to packaging will show consumers that the retailer is making an effort” — David Griffiths Senior Product Marketing & Strategy Manager, Adjuno

71

MAKING A CHANGE The potential is huge, but retailers must realise that the smallest changes can have the biggest impact. What’s important is for retailers to make these changes and then shout about it from the rooftops, moving carbon footprint to the top of the agenda and creating an ecosystem of retailers working towards a common goal to turn sustainability from talk to action.

e uro pe .busi ne ssc hief. com


C I T Y F O C U S | G E N E VA

GEN

City Focus 72

Business Chief takes a closer look at what makes Geneva the world’s smallest metropolis, and surely one of its most beautiful

DECEMBER 2019


NEVA WRITTEN BY

MARCUS LAWRENCE

e uro pe .busi ne ssc hief. com

73


C I T Y F O C U S | G E N E VA

G

eneva, Switzerland’s second-largest city and the capital of the Republic and Canton of Geneva, is sometimes

referred to as the ‘Capital of Peace’. As the host of the European Union’s United Nations

Office, the home of the International Red Cross, and the birthplace of protections for non-combatants in war, the moniker is certainly justified. Geneva is also a favourite location for the international headquarters of numerous multinational businesses, drawn by the strength of its infrastructure, 74

its highly-educated population, proximity to ascendant African and Middle Eastern markets, and the superlative quality of life the city offers. Among those with major offices in the city, Geneva counts such names as Microsoft, BNP Paribas, Dell, Facebook, JP Morgan Chase, Rolex, SITA, PepsiCo, Ralph Lauren, Richemont and Bacardi among its corporate denizens. Akin to the country at large, Geneva is a stunningly beautiful place, bordered by the Alps and offering views of their tallest peak, Mont Blanc. As a result, Geneva serves as a hub for skiing enthusiasts, with the world-renowned slops of Chamonix, Flaine, Avoriaz, Les Contamines and La Clusaz all within a 90-minute drive. Straddling DECEMBER 2019


“Geneva is a stunningly beautiful place, bordered by the Alps and offering views of their tallest peak, Mont Blanc�

e uro pe .busi ne ssc hief. com

75


C I T Y F O C U S | G E N E VA

“A facet of Geneva’s touristic offering that is not so easily missed is the emblematic Jet d’Eau”

the French-Swiss border, Lake Geneva (Lac Léman) completes the region’s topographical reputation for immaculate wildness with clear, crystalline waters, dark forests along its shores and no shortage of wildlife. The lake hosts a series of regattas and yacht races each year, including the Tour du Lac. Conducted around the 166km perimeter of one of Western Europe’s largest lakes, the Tour stands as the world’s longest non-stop rowing regatta. Despite being Switzerland’s second-

76

most populous city, its population in 2018 stood at just 201,741 across its 15.93km2, according to the Swiss

DECEMBER 2019


CLICK TO WATCH : ‘GENEVA. ONE CITY. A WORLD OF COMPETENCES.’ 77

Federal Office for Statistics. For comparison, Bern, the busiest Swiss city and de facto capital, is home to 1.034mn. Owing to its diminutive size and small population, it is known to some as the world’s smallest metropolis. It is, nonetheless, remarkably cosmopolitan, with just 52% of those counted by the Federal Office in 2018 being Swiss. With some claiming that 187 different nations are represented by citizens across the wider Canton, the breadth of spoken languages in

207,741 Population (2018)

58 bc Year founded

15.93km2 City coverage

the region – beyond the official French, e uro pe .busi ne ssc hief. com


C I T Y F O C U S | G E N E VA

78

German and Italian – is enormous,

along with being renowned for its

with Geneva.info stating: “you can

French-influenced cuisine and

hear just about every other language

architecture.

in Geneva if you listen hard enough,

Historically, Geneva began as a

from Albanian to Zimbabwean”. As

Celtic settlement before being taken

the city is just 4km from France, it

by the Romans and established as

is also widely known as the primary

a Roman city in 58 BC. Moving into

French-speaking city of Switzerland

the Middle Ages, it is documented

DECEMBER 2019


“Geneva is remarkably cosmopolitan, with just 52% of those counted by the Federal Office in 2018 being Swiss”

79

that a tsunami rose from Lake

it is believed, caused a collapse of

Geneva in 563 AD, destroying

a sediment layer which subsequently

much of the city and claiming the

set the giant wave in motion. Analysis

lives of innumerable citizens. Known

of the lake’s sediment cores by

as the Tauredunum event, the tsu-

researchers at the University of

nami was supposedly triggered by

Geneva suggests that this was nei-

a rockfall at the opposing end of the

ther the first tsunami-esque incident

lake to Geneva itself. The rockfall,

on Lake Geneva nor the last. “It’s e uro pe .busi ne ssc hief. com


C I T Y F O C U S | G E N E VA

80

certainly happened before and I think

financial centre in a now famously

we can expect that it will probably

finance-oriented economy, and enjoys

happen again sometime,� said Guy

a workforce comprised of highly-

Simpson, a geologist from the University

educated and internationally-minded

of Geneva, according to Nature in

professionals. Outside the fiscal world,

2012. The findings are applicable to

the city’s traditional watchmaking

large lakes around the globe, highlight-

industry remains, whereas its historic

ing the little-known threat posed to

textiles manufacturers have largely

lakeside populations irrespective

disappeared. The city also enjoys

of their proximity to fault lines.

a thriving chemical industry that supplies

In more recent years, Geneva has benefitted from its status as an early DECEMBER 2019

luxury fragrance manufacturers and pharmaceutical companies, along


with an agricultural base specialising in wine, dairy, wheat and rapeseed. Tourism, naturally, is no small matter across the city and the lake, with one of the world’s strongest concentrations of state-of-the-art hotels, chalets and restaurants along with plenty of provision for a wide range of budgets. Beyond the natural beauty of the Canton, Geneva and neighbouring Lausanne are replete with museums, sites of architectural interest, and medieval streets and plazas. A facet of Geneva’s touristic offering that is not so easily missed is the emblematic Jet d’Eau. On display all year old, the 140m-tall water column springs from Lake Geneva and began as a safety valve further downstream for the local hydraulic power plant in the 1800s. Its beauty afforded it a prominent and permanent relocation to the city’s shoreline. The jet, itself a common symbol of Geneva, is similarly evocative of the Swiss proclivity for the elegant blending of the natural and industrial.

e uro pe .busi ne ssc hief. com

81


T O P 10

82

DECEMBER 2019


Wealthiest individuals

83

Business Chief takes a look at the top 10 richest individuals in Europe, based on the November 2019 real-time reports from Forbes’ World’s Billionaires WRITTEN BY

AMBER DONOVAN-STEVENS

e uro pe .busi ne ssc hief. com


T O P 10

1950 YEAR BORN

$20.7bn REVENUE IN DOLLARS

84

10

Vagit Alekperov LUKOIL

Vagit Alekperov is one of the richest billionaires in both Russia and Europe. The self-made billionaire was originally a Caspian Sea oil rig worker, progressing up through the industry until he founded Lukoil in 1991. Today it is the third largest company in Russia. He is quoted: “I have devoted my whole life to work. I have no friends and acquaintances outside my business world.” Alekperov holds a Bachelor of Science in Engineering from the Azerbaijan Institute of Oil and Chemistry and has written ‘Oil of Russia: Past, Present and Future’.

DECEMBER 2019


1964 YEAR BORN

$21.7bn REVENUE IN DOLLARS

85

09

Giovanni Ferrero FERRERO SPA

Giovanni Ferrero became the co-CEO of family-run company Ferrero SpA in 1997 with his brother Pietro, who passed away in 2011. The company is best known for its confectionery including chocolatespread product, Nutella. Ferrero stepped down as CEO in 2017, yet remained as Executive Chairman in order to focus on corporate strategy. In 2018, he broke the firm’s decades-old tradition of not conducting acquisitions by penning a deal with Nestle to acquire the entirety of its US confections for $2.8bn.

e uro pe .busi ne ssc hief. com


T O P 10

1952 YEAR BORN

$22.5bn REVENUE IN DOLLARS

87

08

Gennady Timchenko VOLGA

Gennady Timchenko is another Russian oil mogul, with a net worth of $22.5bn. He is the founder and owner of Volga, a private investment group specialising in investments in energy and transport. He also has other large holdings including 23.5% of gas producer Novatek and 17% of chemicals manufacturing company, Sibur. According to Bloomberg, Novatek is responsible for almost 10% of Russia’s natural gas production.

e uro pe .busi ne ssc hief. com


T O P 10

1935 YEAR BORN

$23.4bn REVENUE IN DOLLARS

88

07

Leonardo Del Vecchio LUXOTTICA

Leonardo Del Vecchio is an Italian businessman who founded eyewear lens producer, Luxottica in 1961, aged only 25. Luxottica has become a giant over the decades with its vast number of acquisitions including: Scarrone in 1974; Vogue in 1990; Persol in 1995; Ray-Ban in 1995; Sunglasses Hut in 2001; OPSM in 2003; Pearle Vision in 2004; Surfeyes in 2006; Cole National in 2004; and Oakley in 2007. His son Claudio is the CEO of retailer Brooks Brothers.

DECEMBER 2019


1955 YEAR BORN

$26.3bn REVENUE IN DOLLARS

89

06

Leonid Mikhelson NOVATEK

Leonid Mikhelson is the richest man in Russia. He gained his degree in Industrial Civil Engineering from the Samara Institute of Civil Engineering in 1977, before working as a foreman in Tyumen, Siberia. Mikhelson was the General Director of Kuybyshevtruboprovodstroy until the collapse of the Soviet Union. The newly privatised oil and gas pipeline formed the foundations for Novatek, which is today the second largest natural gas company in Russia. Mikhelson often partners on investments and business with fellow Russian billionaire, Gennady Timchenko, who is also said to have close ties to President Putin.

e uro pe .busi ne ssc hief. com


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T O P 10

1936 YEAR BORN

$29bn REVENUE IN DOLLARS

91

05

Franรงois Pinault KERING

Franรงois Pinault is the French billionaire who founded Kering in 1963. The business originally started in the timber industry but shifted its product line to fashion following the acquisition of Gucci in 1999. The luxury fashion group also owns brands Saint Laurent and Alexander McQueen. After the 2019 fire, the Pinault family pledged $113mn to the repair of Notre Dame cathedral. The family also has an extensive art collection of 3,000 pieces, including works by Picasso, Mondrian and Koons. According to Forbes, Pinault plans to open a museum in France next year.

e uro pe .busi ne ssc hief. com


T O P 10

1951& 1948 YEAR BORN

$33.3bn 92

REVENUE IN DOLLARS

04

Beate Heister and Karl Albrecht Jr ALDI

German siblings Beate Heister and Karl Albrecht Jr have a joint net worth as they both inherited the supermarket Aldi following the death of Karl Albrecht Sr in July 2014. Heister, her husband and son sit on Aldi’s advisory board. Albrecht Jr worked in a number of roles across the discount supermarket but resigned following a cancer diagnosis.

DECEMBER 2019


1953 YEAR BORN

$53.6bn REVENUE IN DOLLARS

93

03

Francoise Bettencourt Meyers L’OREAL

Francoise Bettencourt Meyers is currently the wealthiest woman in the world and the President of L’Oreal, having inherited both roles when her mother died in 2017. The French businesswoman has written a collection of commentaries on Jewish and Christian relations and also created the philanthropic organisation, Bettencourt Schueller Foundation in 1987.

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0000 YEAR FOUNDED

02

Amancio Ortega INDITEX

94

Amancio Ortega is the richest retailer in the world and the wealthiest businessman in Spain. Ortega co-founded Inditex in 1975 with his then-wife, Rosalia Mera. Today he owns 60% of the company, including several brands such as Zara, Massimo Dutti and Pull & Bear.

DECEMBER 2019

1936 $0.0bn YEAR BORN REVENUE IN XXXXXXXXX DOLLARS

$68.1bn REVENUE IN 0,000 DOLLARS NUMBER OF EMPLOYEES


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CLICK TO WATCH : ‘15 THINGS YOU DIDN’T KNOW ABOUT AMANCIO ORTEGA’

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Fondation Louis Vuitton © Iwan Baan

CLICK TO WATCH : ‘BERNARD ARNAULT, CHAIRMAN AND CEO OF LVMH | THE BRAVE ONES’ DECEMBER 2019


1949 0000 YEAR YEARBORN FOUNDED

$93.9bn $0.0bn REVENUE IN DOLLARS REVENUE IN XXXXXXXXX DOLLARS

0,000 NUMBER OF EMPLOYEES

01

Bernard Arnault

LVMH MOËT HENNESSY Bernard Arnault is the richest man in Europe and the third richest in the world, behind Jeff Bezos and Bill Gates. Arnault owns a vast number of luxury goods brands, including Louis Vuitton, Sephora and LVMH Moët Hennessy – Louis Vuitton. One of Arnault’s major acquisitions is that of Christian Dior, where he used $15mn from his father’s construction business to buy the designer brand in 1985. Arnault is also an art collector and was awarded the Museum of Modern Art’s David Rockefeller Award in 2014. He has also been awarded honorary titles of Grand Officier de la Légion d’Honneur and Commandeur des Arts et des Lettres.

Louis Vuitton © LVMH / Marco Adriano

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98

TAP into the cloud with SAP intelligent spend management WRITTEN BY

WILLIAM SMITH PRODUCED BY

ARRON RAMPLING

DECEMBER 2019


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SAP SE

Fawaz Al-Nouri, General Manager Transformation Acceleration Programs, EMEA, at SAP, discusses the best ways to succeed in digital transformation

T

he necessity of digital transformation is well understood and easily grasped; businesses have to find new ways to deliver

value, generate revenue, and improve efficiency. What is more obscure is the actual business of going about the transformation – what solutions to 100

put in place, how to adapt them to specific industry, and how to measure and achieve success when doing such transformation. Multinational enterprise software company SAP’s Transformation Acceleration Programs (TAP) offers customers the necessary expertise to achieve a successful spend management transformation, as Fawaz Al-Nouri, General Manager for TAP in Europe, Middle East and Africa, explains. “SAP’s purpose has always been about helping the world run better and improving people’s lives. In support of this purpose, TAP was formed to help businesses define their transformation roadmap and how to move from their current outdated systems – where they’re not getting the most value they can – to new technologies that benefit and improve the way they do business and in turn DECEMBER 2019


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SAP SE

“SAP’s purpose has always been about helping the world run better and improving people’s lives”

achieve their vision to better serve their end customers.” The TAP process begins with gathering an understanding of the client’s existing setup. “Our group of deployment experts will apply a proven engagement model to expedite and improve the success of spend management transformation. We provide software, industry and pro-

102

— Fawaz Al-Nouri, General Manager, Transformation Acceleration Programs for Europe, Middle East and Africa, SAP

cess expertise while championing an operating model focused on value and exceptional business outcomes. We take a design thinking approach, where we study where our customers are today, but at the same time we also try to understand where they want to be, and the barriers that are stopping them from getting there.” It is only after this exercise has been completed that potential solutions are put forward and discussed. “Based on the TAP analysis, we recommend the right technology and decide what makes sense for our customers to take on. Throughout the engagement we’re thinking about solving our customers problems and making them run better.” The solutions and capabilities that SAP offers are centred around its

DECEMBER 2019


CLICK TO WATCH : ‘SAP PROFILE’ 103 digital core enterprise resource plan-

It’s worth noting that while the digital

ning (ERP) system, S/4HANA. Tightly

core S/4HANA is available in both on-

connected to this digital core are

premise and cloud editions, most of the

branching capabilities for customer

branching capabilities such as spend

relationship management and experi-

management are on the cloud, and

ence, network and spend management,

Al-Nouri is a big believer in working on

digital supply chain, human resources

cloud. “When I started implementing

and people management and more.

software, SAP was known as the ERP

“SAP provides end-to-end solutions

company; we delivered wall-to-wall on-

that cover most of our customers’

premise solutions. At that time, I was a

needs” says Al-Nouri. “The important

little bit sceptical about cloud. I used to

thing is to prioritise and plan when

think that large businesses with com-

to implement what and tie all these

plex IT infrastructure wouldn’t be able

pieces together so that the customer

to adopt the cloud. Then, in 2010 SAP

can run their business seamlessly.”

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SAP SE

CLICK TO WATCH : ‘SAP COMPANY’ 104

a choice in how they consume SAP’s

running IT processes inside your four

software. This is when I started to work

walls, putting them on the cloud frees

with many customers embarking on

you from managing that on your own.

the journey to move to the cloud, see-

Reduced maintenance, infrastructure

ing first-hand that it’s possible and all

and support costs results in signifi-

the benefits that come with it. It was

cantly lower total cost of ownership.

then that I myself was transformed.”

Number two is the connection to the

In that regard, Al-Nouri cites three

outside world. The cloud gives you

key reasons that spend management

access to the business network you

cloud transformation is worthwhile.

need to achieve a high level of col-

“While we always look at the broader

laboration with other companies and

spectrum, we’re big advocates of cloud

organisations, where businesses con-

technology. Number one is because

nect, communicate and collaborate to

of the return on investment. Instead of

redefine how work gets done. When

DECEMBER 2019


you plug into the business network,

through the cloud. Artificial intelligence,

you get instant access to millions of

the internet of things and many more

potential customers, suppliers and

innovations will be at your fingertips

solutions. This will bring value to all

when you move to the cloud.”

stakeholders; lower processing costs,

However, such transformations

eliminate mistakes, and speed up the

cannot be achieved through technol-

transactions. It’s like comparing email

ogy alone. Culture must always be a

to Facebook, sharing business cards

consideration, as Al-Nouri explains.

with connecting on LinkedIn, and

“It’s important to understand the cli-

postcards to SnapChat. Thirdly, digital

ent’s culture, because every customer

technology means you don’t have to

is different. What we find in cloud

invest a lot of money and time to build

transformation is that transitioning

the technology that you need in-house,

to a cloud mindset by moving away

instead having access to it right away

from on-premise customisations to

E XE CU T I VE PRO FI LE

Fawaz Al-Nouri Fawaz Al-Nouri is part of the intelligent spend management group at SAP, bringing 22 years of experience in helping businesses to transform and implement large scale enterprise resource planning (ERP) systems, supply chain solutions, and cloud services. Al-Nouri started with Ariba in 2006, which later became part of the SAP family. He held multiple advisory and leadership roles before becoming in 2017 the General Manager for Transformation Acceleration Programs (TAP) in Europe, Middle East and Africa. Al-Nouri’s primary focus in his current role is the transformation of customers from SAP on-premise solutions to the cloud.

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Is your organization built to evolve? How can you navigate relentless disruption and tomorrow’s uncertainty? By becoming a more kinetic enterprise—an intelligent enterprise built to evolve. It’s time to reimagine everything. Deloitte can show you how—and help you make an impact with SAP ® solutions. Learn more at www.deloitte.com/SAP

Copyright © 2019 Deloitte Development LLC. All rights reserved.


Big questions and big answers, about the future of procurement and cloud. The past decade has brought intense business and technology disruption—especially for procurement, finance, and supply chain leaders. Now a new challenge sits on the horizon. By 2025, SAP intends to end mainstream support for its SAP® Supplier Relationship Management (SRM) solution—an on-premise offering that many organizations use for procure-to-pay processes today. What should you know? We asked Frederic Girardeau-Montaut, leader of Deloitte Consulting LLP’s SAP Ariba practice, to share his insights. Why the rush to transition away from SAP Supplier Relationship Management? The year 2025 is closer than it seems. It takes time to understand your options, build the business case, create your roadmap, and do the actual work. Wait too long, and you could find yourself operating with an unsupported solution and missing out on future innovations. For many SAP customers, the next step will be the SAP® Ariba® cloud suite. That’s where SAP is focusing its energy, innovations, and solution enhancements when it comes to procurement. But is jumping to SAP Ariba too soon a risk? What if needs dramatically change between now and 2025? There are always risks, which is why you shouldn’t undertake the journey alone. You need a partner that can help orchestrate your transformation. But there’s another big force that helps reduce the risk, and that’s cloud. With cloud, you can respond, scale, and evolve as the market evolves. You can become a more kinetic enterprise—one that moves fast and with impact. Cloud also allows you to more seamlessly integrate capabilities—so you can link SAP Ariba solutions with the SAP S/4HANA® digital core, for example, and take it one step further

with SAP® Integrated Business Planning. The payoff? You can drive intelligent automation and insights across the entire plan-to-procureto-pay spectrum. What kind of help will organizations need? First, experience matters. The learning curve can be steep. At Deloitte, we have been steadily building on our insights as we help industry leaders worldwide move from SAP SRM to SAP Ariba—from on-prem to cloud. Our 30-year relationship with SAP—and our vast implementation experience—provides a solid foundation for doing that. Second, this is more than a technology upgrade. This is an opportunity for a true digital business transformation. This is your chance to enable intelligent spend management that can drive savings and efficiencies across the business … your chance to transform the tax picture … your chance to build tomorrow’s digital supply network. To do those things, you need a complete team —not just a technology team. You need specialists in tax, spend, cloud, risk, IT implementation, industry-specific business strategy, and more. And you likely will need it on a global scale. That’s the kind of team Deloitte leverages to help our clients—no matter where they are in their journeys. It’s about helping them strengthen operations, improve processes, innovate, and evolve—in a holistic way that goes beyond just a technology platform.

Want additional insights? Contact SAP@ deloitte.com to learn more or to schedule a demo of SAP Ariba solutions in action.


SAP SE

CLICK TO WATCH : ‘SAP PARTNER’

standard processes in the cloud is

In the course of its assessments,

key. Therefore, change management

TAP encounters differing reasons for

to ease this transition is a huge aspect

embarking upon a transformation.

that has to be taken into consideration.”

Some businesses might be inspired

Because such approaches can lead

by the need for modernisation, while

to disruption, it is consequently vital

others might be more existential. “In

that organisations keep on top of com-

the current digital age, every company

munication. “A lot of transformations

is under pressure to achieve digital

depend on change management and

transformation, simply because of all

how you communicate the change, not

the technologies that we have around

only to your internal stakeholders, but

us. These technologies are connecting

also to the external world so that eve-

people, the internet, and the physical

rybody knows what’s going to happen

world like never before. When every-

and everybody’s onboard to move in a

thing is connected business as usual

new direction.”

becomes a thing of the past and the

DECEMBER 2019


CO MPAN Y FACT S

• The world’s #1 cloud business software company • Recognised as a Leader across all categories • Proven expertise in 25 industries

109 transformation of many industries needs to accelerate.” says Al-Nouri. “But some industries are under more

“In the current digital change in productivity and incremental age, every company process innovation might be appropriis under pressure ate for some industries like mining, oil and gas, and chemicals, other industo achieve digital tries like media, banking, and retail are transformation” under intense pressure to innovate pressure than others. While step

their business model and improve their customer experience now.” Whether it’s a step process or accelerated change, Al-Nouri sees

— Fawaz Al-Nouri, General Manager, Transformation Acceleration Programs for Europe, Middle East and Africa, SAP

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SAP SE

PA RT N E R S

“Deloitte is one of the preferred SAP partners for running transformation projects. Whether you want to undertake an end-to-end procurement transformation or plan a bigger digital enterprise transformation with cloud technology, Deloitte can help.” — Fawaz Al-Nouri, General Manager, Transformation Acceleration Programs for Europe, Middle East and Africa, SAP

110

DECEMBER 2019


the digital transformation. “As business grows, there’s more spend, across more channels, than ever before. This requires better control, better speed, and better sustainability.” To be able to manage these changes, a solid, adaptable and scalable procurement platform is needed. “We call it intelligent spend management, because it covers all areas needed for procurement transformation to be successful. Full transparency into what and how you’re spending is critical and is best achieved by adopting a seamless source to pay system. This system needs to be intelligently connected with your trading partners so that you and your suppliers are always up to date, and you can apply compliance policies to every transaction. Only then can you leverage advanced technologies like artificial intelligence, machine learning and natural language processing to further optimize and automate the system.” Looking at 2020 and beyond, therefore, and understanding how many businesses need to embark on a transformation, scalability becomes very important for TAP. “We see a lot of e uro pe .busi ne ssc hief. com

111


SAP SE

demand and we want to help as many customers as we can to transform better and faster. We’re addressing this by developing tools that can streamline the transformation process, from legacy systems analysis utilities to data migration accelerators. We are also working closely with our ecosystem. Our technology partners provide solution extensions that complement our portfolio, such as process mining by Celonis to support process transformation from beginning to end, and 112

signature management by DocuSign to eliminate manual steps. Our system

“Transformation is an ongoing process, and the most important factor is customer end to end success from transformation to adoption” — Fawaz Al-Nouri, General Manager, Transformation Acceleration Programs for Europe, Middle East and Africa, SAP DECEMBER 2019


1972

Year founded

€24.74bn+ Approximate Revenue

integration partners support our teams by providing their knowledgeable resources for implementation, integration and change management. Large consulting firms such as Deloitte, IBM or EY can, on the one hand, look at the overarching transformation programs and process improvement. On the other hand, meanwhile, pro-

99,700 Number of employees

curement niche specialists such as apsolut or ExceleratedS2P can focus on the functional design and technical integration aspects.” Finally, Al-Nouri points out the importance of recognising that transformation is an ongoing process, and the most important factor is customer end to end success from transformation to adoption. As SAP’s member of the executive board Adaire Fox-Martin said in her speech at Web Summit in Lisbon this November: ”I will tell you the single most truthful thing you can hear about transformation: It never ends. The market and the customer will never stop changing. That fact grounds us and should ground you. We hold customer success as the inspiration of everything we do.”

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114

DECEMBER 2019


: R O D A U C E I T TUEN , L A T I G I D , E L SIMP AGILE WRITTEN BY

HARRY MENEAR PRODUCED BY

GLEN WHITE

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TUENTI ECUADOR

Gerardo Suårez Napolitano, CEO of Tuenti Ecuador, reflects upon the Telefonica offshoot’s rapid growth, 100% digital offerings and agile methodology

T

he global business landscape is being continually shaped and reshaped by evolving customer demand. In the tel-

ecommunications space, the rise of social media 116

and digital communication is provoking radical shifts in the way that operators approach new and existing markets. Tuenti came into being in 2006 as a social networking service targeting young people in Spain. Between 2009 and 2012, it attracted more than 15mn registered users, becoming known as the Spanish Facebook. Seeking new markets and customers, the company has transformed its offering over the past decade, now operating as a private brand which operates as an independent business unit of multinational telecom giant TelefĂłnica. The firm offers mobile telephone services accessible anywhere on any device with the strong digital operation.

DECEMBER 2019


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TUENTI ECUADOR

The Tuenti brand entered the Ecuadorian market in 2015, sponsored

Ecuador’s dramatic growth, and the

by José Manuel Casas, Telefónica

company’s vision for the future.

Ecuador’s Executive President, with the

“When we were starting out with

goal of capturing the millennial and and

Tuenti Ecuador, we wondered if it was

centennial market through a roster of

possible to create a new telco brand

simple, affordable plans as an alterna-

that was different from what millennials

tive to traditional mobile carriers. “We

and centennials were accustomed to in

started out with a plan to reach 500,000

Ecuador,” recalls Suárez Napolitano. “To

customers in five years. Four and a

accomplish this, we thoroughly inves-

half years into that plan, we have more

tigated what was positive and negative

than 900,000,” says Gerardo Suárez Napolitano, CEO of Tuenti Ecuador. 118

to discuss the strategies behind Tuenti

We sat down with Suárez Napolitano

2015

Year founded

$36mn

Revenue in US dollars

27

Number of employees

9%

Share of market in telco prepaid segment DECEMBER 2019


CLICK TO WATCH : ‘RECARGA BANCO GUAYAQUIL — STAR WARS’ 119 about these users’ experiences. We

have access to the same great offerings

became obsessed with their wants and

we present to our newest customers.

needs. From those inputs we created

Lastly, we don’t do small print or hidden

the Tuenti experience, which is the sum

conditions; our offering is so simple that

of an attractive commercial offering and

our customers will always understand,

a very simple product to use.” Tuenti´s

remember, and hopefully love it,” says

team operates in accordance with three

Suárez Napolitano. “When we designed

central rules for creating a superior

the product we dedicated a lot of time

telecommunications product: be data

to constantly achieving innovations that

centric, be pro client and keep it simple.

make the experience easier and easier.”

“Our target demographic wants data,

At the heart of Tuenti Ecuador’s suc-

so that’s at the heart of everything we

cess is a dedication to agility, simplicity

offer. We also value our loyal customers

and a constant focus on improving the

as much as we value our new ones, so

product. “Our User Experience (UX) is

long—term Tuenti customers will always

at the heart of everything we do.” The e uro pe .busi ne ssc hief. com


TUENTI ECUADOR

simplicity of Tuenti Ecuador’s digital

The company eschews a physical

products also affords the company

presence, instead embracing a 100%

the opportunity for laser focus on the

digital offering delivered through chan-

intricacies of its offering. “Although the

nels such as Facebook, Twitter, Web

products we offer may be simple, when

Chat and the Tuenti Chat App. “We

we change and improve those projects

know that the best customer service

— offering new integrations, promotions,

is the customer service that doesn’t

etc — we work through those changes

happen because the client doesn’t

in great detail, investing time in test

need it, so we make it as easy as pos-

environments and, in many cases, we

sible for them to find the answers to their

integrate the developments in phases to

problems without having to pick up

ensure the best possible results,” Suárez

the phone. We don’t have any physical

Napolitano explains.

care centres,” says Suárez Napolitano.

Learn More

Find out how businesses like yours are growing on Facebook. Cisneros Interactive is a Facebook Authorized Sales Partner for Bolivia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama, Paraguay, Puerto Rico and Uruguay helping brands in those countries to take advantage of Facebook’s marketing platform for real business results. LEARN MORE


N A L P A H T I W UT O D E T R A T S S R E M “WE O T S U C 0 0 0 , 0 0 5 H F L A H TO REAC A D N A R U O F . S R A E E V A H IN FIVE Y E W , AN L P T A H T O T YEARS IN ” 0 0 0 , 0 0 9 — N MORE THA Gerardo Suárez Napolitano, CEO, Tuenti Ecuador

121 E XE CU T I VE PRO FI LE

Gerardo Suárez Napolitano Suárez Napolitano is an executive with over 25 years’ experience in several commercial assignments in Latin America. He worked in massive consumer products companies such as Procter & Gamble in Venezuela and Argentina, and Empresas Polar in Venezuela. His last 15 years has been spent working in telecommunication business in the hand of Telefónica as a Commercial Director in Venezuela, Sales Director of Telesp in Brazil and Commercial VP in Ecuador. In October 2014, he was appointed as Tuenti Ecuador’s CEO and launched the brand in June 2015 as separate business unit of Telefónica. Suárez Napolitano is an Industrial Engineer from UCAB — Venezuela, Finance Magister from Unimet — Venezuela and Telecom Business Master from Catalunya University in Spain.

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TUENTI ECUADOR

122

HE T G N I D E E C EX D N A G N I T E AN L “ME P S S E N I S U RB U O F O S L A GO ING Z A M A E H T O T E U D N E E B HAS ” M A E T R U — O F WORK O Gerardo Suárez Napolitano, CEO, Tuenti Ecuador

DECEMBER 2019


123

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TUENTI ECUADOR

, T N I O P R E “LESS POW ” N O I T C A E MOR — Gerardo Suárez Napolitano, CEO, Tuenti Ecuador

124

DECEMBER 2019


“Instead, we have an omnichannel customer service offering supported by our own proprietary chat bot that allows us to optimise our service and increase customer satisfaction.” As a result, Tuenti Ecuador has been recognised as having the best digital customer service record in the market, reaching 72% of NPS (Net Promoted Score), Internally, the company has achieved a 60% level of automation regarding customer service. Agility and innovation are impossible, however, without deep, meaningful understanding of the target market. Súarez Napolitano prides his team on being young, diverse and creative. “Meeting and exceeding the goals of our business plan has been due to the amazing work of our team,” he says. “To create this team, we sought to integrate a diverse mixture of talents, incorporate a large percentage of millennials into the company, hire people with experience inside and outside the telco sector, as well as people from different geographies of the country, and ensure an even mix of genders.” This small and diverse team has been essential to Tuenti Ecuador adopting a successful digital strategy, with the agility to evolve and e uro pe .busi ne ssc hief. com

125


TUENTI ECUADOR

126

suit the needs of a market based on clear

Tuenti Ecuador has become the

understanding of consumer demand.

preferred brand for millennials and

This agile methodology is not restricted

centennials in the telco industry. The

to the company’s internal operations.

company’s brand communication and

Suárez Napolitano explains that, through

media strategy are based on awareness,

Tuenti Ecuador’s relationships — all of

consideration, performance and loyalty.

which are based on a commitment to

Continuously, the firm creates cam-

maximising agility — with a growing

paigns with direct collaboration

network of close partners, the company

from Facebook Creative Shop and

has dramatically improved the quality

Google Excellence, who guide them

of its offering and reduced delivery

in the best practices of creative

times across its supply chain.

execution and media.

DECEMBER 2019


127

Looking to the future, Suárez

avenues that aligns with and expands our

Napolitano sees Ecuador as a place

current offering,” he enthuses, adding

of limitless potential. “In 2020, there

that Tuenti Ecuador is a business that cel-

are three key areas we will be pursuing:

ebrates success, takes risks, learns from

ensuring that the Tuenti team continues

its failures, and constantly innovates. He

to operate with the same passion, humil-

laughs, adding one final thought: “Less

ity and individualistic spirit that has seen

PowerPoint, more action.”

us change and grow to become the preferred brand for the country’s young people; expand the capabilities — and therefore the user base — of our digital platforms; and develop new business e uro pe .busi ne ssc hief. com


128

Stora Enso: the future of manufacturing just got smarter WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

MANUEL NAVARRO

DECEMBER 2019


129

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STORA ENSO

Stora Enso’s digitisation programme is realising the benefits of automation and 5G to optimise efficiency, flexibility, and availability in production

S

tora Enso is among the world’s oldest companies with more than 700 years of heritage, encompassing mining, iron and

wood activities, stretching back to the 13th century. Today it focuses on all of the possibilities to manu130

facture a diverse range of products made from renewable materials with the forest and the trees as their foundation. Marko Yli-Pietilä, Head of Smart Operations at Stora Enso, is in charge of driving the digitalisation and transformation programmes allied to global smart operations in all areas of the business: consumer board, bio materials, paper, packaging solutions and wood products. “The Smart Operations team is responsible for accelerating digitalisation in our operations, but that is only one part of Stora Enso’s overall digitalisation programme. We also look at digitalising the customer interface, supply chain digitalisation and back office digitalisation with HR and finance processes,” he says. “In addition to this, we work with the startup community to develop new digital solutions as well DECEMBER 2019


131

as nurturing our own internal startup initiatives to develop new digital products.” One of those successful solutions is the new retail solution for unmanned retail, which was launched during 2019. The digitisation of Stora Enso’s manufacturing fleet comprises around 100 production lines across many factories and is vital to achieve higher operational efficiency. “Operationally, we manufacture a diverse range of wood-based products. We’re also producing many e uro pe .busi ne ssc hief. com


— Let’s create the mill of the future With ABB Ability™ Collaborative Operations

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New digital technologies driving peak plant performance — Across all industries, the ABB Ability™ digital offering is well positioned to help our customers on the journey toward more effective uses of massive quantities of data, and toward more autonomous operations that liberate people to focus on their end customers and on process improvements. ABB Ability™ Collaborative Operations supports a path to this future, offering data-driven decision guidance for a mill’s human operators, a key first step towards more autonomous operations.

ABB is proud to support Stora Enso’s digitalization journey ABB Ability™ Collaborative Operations Designed to unite autonomous digital technologies and decision making, ABB Ability™ Collaborative Operations is built on ABB Ability™, ABB’s unified, cross-industry, digital platform that securely collects data on the health and performance of equipment from onsite smart devices and operation-critical systems. ABB experts monitor this data remotely while applying advanced data analytics to isolate trends and pinpoint issues. The result is actionable recommendations that address potential problems, advise on preventive maintenance priorities, and illuminate ways to improve performance. ABB Ability™ Collaborative Operations is a true Industrial Internet of Things application and is part of the company’s portfolio of ABB Ability™ digital solutions. Collaborative Operations provides performance management, remote monitoring and preventive analysis technologies to improve security, efficiency and productivity. ABB Ability™ Collaborative Operations for paper mills identifies and addresses production, quality and cost issues

that can inhibit peak performance. This improves return on capital. In particular, ABB’s solutions are helping to: • Centralize and streamline operations. By applying remote connectivity and analytics to process and equipment data, producers can empower teams in centralized control rooms, which have the automated tools and visualization capabilities to help teams make decisions and process improvements, throughout the mill and also the enterprise. • Increase energy efficiency. Technologies that enable the alignment of production schedules to energy supply and demand help optimize energy usage according to fluctuating energy costs. • Achieve safety goals. Using technologies that increasingly automate tasks within the space of rotating and moving machinery reduces the risk of injuries. Meanwhile, remote services and augmented reality can help avoid human contact with live current. • Reduce costs through advanced process control (APC). Delivering APC using a performance-based approach and business model allows mills to stay ahead of problems and continuously optimize processes to make more with less. This also allows mills to focus improvements on known areas of complexity like the pulp mill and the wet end of the paper machine. The future, today Whatever the specifics of an operation or solution, ABB is supporting and guiding the pulp and paper industry on its journey toward ever more effective use of digitalization, creating next-level operations and realizing significant cost benefits. With its forward-thinking approach and industry-leading solutions, such as ABB Ability™ Collaborative Operations and ABB Ability™ Advanced Process Control, ABB is ready to be your partner in shaping the future, today.


STORA ENSO

completely new products, such as fiber- based composites,” says Yli-

134

“The Smart Operations team is responsible for accelerating digitalisation in our operations, but that is only one part of Stora Enso’s overall digitalisation programme. We also look at digitalising the customer interface, supply chain digitalisation and back office digitalisation with HR and finance processes” — Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

DECEMBER 2019

Pietilä. “My role is focused on smart operations, which means the digitisation of production and maintenance needed to keep our factories running efficiently also in future.” Stora Enso started investing in its digitisation programme three years ago and has now completed around 160 different projects including artificial intelligence (AI), augmented reality, machine learning (ML) and virtual reality (VR). “We’ve tested almost all of


CLICK TO WATCH : ‘DRONE WOOD YARD INVENTORY’ 135 the technologies on the Gartner hype

Whatever you need to do in your work

curve,” reveals Yli-Pietilä. “We’re using

here, you can do while on the move.”

big data and examining different kinds

Yli-Pietilä believes people are a hugely

of wearables, including smart glasses.”

important aspect of this transforma-

He adds that analytics is probably the

tion. “They need to learn new skills to

strongest area of focus at present. “We

understand how analytics works and

have company-wide mobile maintenance

be familiar with different mobile tools,

tools available both for maintenance

because there will be many applications

personnel and operators when they do

used in the field, and also in different

maintenance-related tasks. Our peo-

operating rooms. It’s very important

ple can also do safety notifications on

we create a unified user experience to

the move, and we also visualise things

teach users,” he says of the company’s

already in 3D formats. The use of 3D

quest to develop unified UIs.

models makes it’s very easy to under-

To support these transformation

stand where things are happening.

goals the company has created a Stora e uro pe .busi ne ssc hief. com


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STORA ENSO

138

Enso design concept called SEEDS

an environment capable of fostering

(Stora Enso Design System). “SEEDS

a collaborative ecosystem. “We aim

is a publicly available set of instructions

to build data assets, like the Stora Enso

and code which enables designers and

IIOT platform, which our partners can

developers to build a user experience

access. In that way we can use the

aligned with Stora Enso requirements,”

same data in the applications they

explains Yli-Pietilä. “The companies we

co-develop with us and deliver to us,”

partner with in the digitalisation area

explains Yli-Pietilä.

can access these assets to help them

Three years on and the success of

develop the services they are deliver-

Stora Enso’s approach is already

ing to us.”

apparent with the company achieving

Stora Enso works with a variety of

second place for ‘Best implementation

partners, from agile startups to larger

of IIoT on the shop floor’ at the 2019

companies, with a focus on creating

Industry of Things World Award. “We

DECEMBER 2019


are the first company in our industry

Stora Enso’s efforts to achieve key

to have implemented 5G to enable

targets such as “optimising efficiency,

real-time 360° camera solutions in

flexibility, and availability” in production.

our production environment,” says

During the acceleration of its digital

Yli-Pietilä. “This allows experts all over

transformation, Yli-Pietilä reflects on

the world to monitor certain areas

the biggest challenge he and his team

of the production and give guidance

have had to overcome over the past

when needed – ultimately making our

few years. “Handling the massive

production environment more efficient

amount of data we generate in the

and safer.” The 5G solution will support

process industry is always a challenge,”

E XE CU T I VE PRO FI LE

Marko Yli-Pietilä I spent more than a decade at Nokia, in a variety of telecommunications roles and then worked in data management, and data warehousing,” recalls Stora Enso’s Head of Smart Operations, Marko Yli-Pietilä. “This experience was perfect preparation for my role at Stora Enso.” Communication and data will be the cornerstone for the 5G revolution, one that Yli-Pietilä is excited to welcome in with the wealth of opportunities it will provide for efficiency and productivity. “My background helps to understand what you can actually do with the data and how you need to organise the data in order to have it in use in the best possible way. And with my experience in management consulting, I appreciate the value in combining digital assets or data assets, how you use the data across distances, and how you then transform this data into something valuable.” He believes organisations can utilise the new capabilities offered by digital transformation to achieve many business targets including revenue growth, better operational efficiency and improved customer experience management.”

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STORA ENSO

700+

Years of history

€10.49bn Approximate revenue

26,000 140

Number of employees

DECEMBER 2019


141

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sustain peak performance.

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he admits. “We’re constantly looking at how we can get the data to be available for these advanced intelligent applications and is why we decided to build a Stora Enso IIoT (Industrial Internet of Things) cloud-based platform. We are using a lot of resources to organise the data in the cloud so that we can have this integrated data asset in use by these applications that we are building in collaboration with different vendors.” When Stora Enso needs to communicate across operations in real-time this is achieved by the close proximity of its digital tools to the production

“SEEDS is a publicly available set of instructions and code which enables designers and developers to build a user experience aligned with Stora Enso requirements” — Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

line. Now, Yli-Pietilä is keen to take things a step further. “We want to predict what will happen in the future, and

reliability. “We want to be able to

we also want to prescribe. We’re trying

advise people to take actions to make

to do prescriptive analytics, not just to

the future look like we want it to look,

tell users what will happen in the future,

with product quality, machine perfor-

but also advise them what they need to

mance, and the reliability of equipment

do to perform in their work in the best

related to the maintenance,” confirms

possible way. We’re building prescrip-

Yli-Pietilä.

tive analytics solutions using AI and

“How we measure the success and

ML, because then you’re not actually

performance of these tools is actually

in real-time — you’re in the future.”

through the business KPIs that we use

Stora Enso already has AI-based

to measure our operational efficiency

applications in use that can see

in general. We start following up those

12 hours into the future with good

business KPIs, so that our digital e uro pe .busi ne ssc hief. com

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STORA ENSO

SU S TA I N A B I L I T Y AT STO R A EN SO

Stora Enso supports all 17 of the United Nations Sustainable Development Goals (SDGs); the following three goals have been identified as the most strategic to the business: SDG 12: The use of renewable materials. Involvement in the bioeconomy and circular economy. Innovating to improve resource and material efficiency.

144

SDG 13: Renewable materials are an important part of the carbon cycle. They grow back and keep absorbing carbon dioxide and storing carbon. Identify and analyse carbon risks and opportunities to establish their financial and non-financial impacts, the likelihood of their occurrence, and their root causes. Stora Enso is the first to set ambitious science-based targets for reducing its greenhouse gas emissions in 2017. SDG 15: 100% of Stora Enso’s main raw material, wood, comes from sustainably managed forests that grow back. Safeguarding forest biodiversity. As wood is its most important raw material, Stora Enso’s key risks cover forest and land use.

DECEMBER 2019


transformation becomes a normal part of our business development also linked to profit and operations improvement.” Yli-Pietilä explains how prescriptive tools can help maintain ongoing production quality. “Paper is produced at around 100km per hour and you need to be able to adjust the process in real-time to maintain the quality our customers expect. Those tools require calculation and predictive capabilities for us to be able to advise the operators that are running the machine to do the process changes necessary to keep production at the optimal level for as long as possible.” The company is also considering testing more flexible and intelligent robots, such as exoskeletons, to assist production workers. Elsewhere, testing is underway to examine the potential benefits of audio analytics. “Based on the sounds we are hearing, we’re analysing how machines are running and if there’s any evidence of a potential malfunction in the future,” he explains. Across its business development the two most important trends for Stora Enso are climate change and sustainability. “After all, we are in the e uro pe .busi ne ssc hief. com

145


STORA ENSO

146

business of replacing fossil-based

“We’re building prescriptive analytics solutions using AI and ML, because then you’re not actually in real-time – you’re in the future” — Marko Yli-Pietilä, Head of Smart Operations, Stora Enso

material with materials that are made out of wood,” says Yli-Pietilä. “We have been transforming our product portfolio for years towards that goal.” Though in smart operations Yli-Pietilä’s team have focused on the operational efficiencies of the manufacturing fleet, their efforts are still contributing to sustainability targets with energy efficiency for example. “We are very keen to develop our water treatment processes to be more sustainable every day and CO2 is something we

DECEMBER 2019


147

are looking at really carefully and how

and availability of the machinery

we can bring those numbers down to

because by increasing the automation

contribute positively to our climate

level we can then affect these key KPIs

change targets,” he confirms.

positively. While we’re doing this, it

With automation levels in its mills

automatically makes the workplace

already high, Stora Enso aims to raise

safer every day.” With automation on

automation levels further while making

the rise, Yli-Pietilä believes the concept

work safer. “If we can automate more of

of ‘dark mills’ is firmly on the agenda

the potentially dangerous operations,

for helping to build a sustainable future.

we will also be increasing our overall

Digitisation has unlocked the door;

operational efficiencies (OEE),” adds

Stora Enso is taking steps to shape the

Yli-Pietilä. “OEE is our most important

corridor beyond.

KPI when it comes to operations. We will then look at performance, quality, e uro pe .busi ne ssc hief. com


148

Harnessing the potential of the Middle Americas at AB InBev WRITTEN BY

WILLIAM SMITH PRODUCED BY

CAITLYN COLE

DECEMBER 2019


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AB INBEV

Gabriel Guzman, Director of Raw Materials, Agricultural Development & Utilities for AB InBev’s Middle Americas region discusses the zone’s potential and the sustainable strides the company is making

A

s the world’s largest beer company, AB InBev (ABI) maintains a complex and interrelated global supply chain. One of

the regions most important to the company’s oper150

ations is the Middle Americas, as Gabriel Guzman, Director, Raw Materials, Agricultural Development and Utilities elucidates. “It’s a fast-growing region, for sure. Out of the entire ABI group it is the second largest in terms of revenue and the largest in terms of EBITDA. It’s a growth engine.” The region’s potential is obvious, but it also brings its own set of challenges. “We deal with less developed economies, so we sometimes have problems with taxation and changing regulations and treaties.” Guzman’s role requires the management of a number of teams, each dedicated to the different sections under his purview – the provision of raw agricultural materials, the coordination of utilities and the sustainable development of agriculture all being examples. That last area is covered by Jose Luis Taylor, Director of Sustainability and DECEMBER 2019


151

1366

Year founded (the Artois brewery)

$54.6mn Revenue in US dollars

170,000+ Number of employees

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AB INBEV

“Our goal for 2025 is that 100% of our farmers are to be skilled, connected and financially empowered” 152

— Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities AB InBev Middle Americas

DECEMBER 2019

Agricultural Development at the company, who speaks to the importance of treating farmers ethically and with respect. “Our goal for 2025 is that 100% of our farmers are to be skilled, connected and financially empowered,” says Taylor. “We have a base of around 4,000 farmers, the majority of which are in Mexico, where we implemented this programme four years ago. We have another programme now in Colombia, and we are making strides in Ecuador. In Mexico, we were challenged to ensure that 100% of the


CLICK TO WATCH : ‘WE ARE AB INBEV’ 153 barley came from local farmers instead

sustainability targets to benchmark

of being imported, which we have now

its progress in these areas, including

achieved. In doing that, we’ve invested

in energy. “By 2025, the target is for

in machinery and created jobs for local

ABI to use 100% renewable electricity,”

people.” This focus on having a positive

says Guzman. “In Mexico we should

effect on the people with whom the

be at 100% by the end of this year,

company works is echoed by Guzman.

which is our largest market – about

“The question is, ‘can we truly talk the

45% of the entire zone. Our goal is

talk and walk the walk and empower

to continue to expand that, so we’re

the communities in which we oper-

looking at opportunities in Colombia.

ate?’ In the early stages, it can be more

in Honduras we have found a source

expensive, but it’s an investment. After

of 11 megawatts of hydro power that

that it can become self-sustainable as

we can potentially use. It will not satisfy

it should be.”

100% of what we are looking for but

ABI has implemented a number of

will definitely help us with our target.” e uro pe .busi ne ssc hief. com


AB INBEV

“We’ve invested in machinery and created jobs for local people” 154

— Jose Luis Taylor Sustainability & Agro Development Director, AB InBev

Water Management is also a focus,

this vegetable protein to change their

as the company’s CEO Carlos Brito

diet, and we are looking at a number

demonstrated during a recent talk.

of disruptive projects to create the

Guzman himself discussed the corol-

right products to match this consumer

lary concern of decarbonisation at a

demand. For instance, last year we

Bloomberg event last year.

launched a smoothie made out of

A sustainable approach can also

spent grains. It’s been in a pilot in the

offer opportunities for value crea-

US and it’s being positively received.

tion. “We have a significant amount

We are also making snack bars from

of byproducts left over after finishing

the grains – we have a significant

the beer-making process, in the form

amount of protein value there.”

of vegetable protein content,” says

ABI’s sustainability work serves to

Guzman. “There is a trend in the mar-

complement its focus on making the

ket where consumers are looking for

best beer. “The quality of the beer is

DECEMBER 2019


155

E XE CU T I VE PRO FI LE

Gabriel Guzman Gabriel leads Anheuser-Busch InBev’s Middle Americas Zone teams for Raw Materials, Agricultural Development and Utilities Procurement. Gabriel oversees the Zone’s plan to achieve its ambitious 2025 100% renewable electricity commitment, which is an integrated part of the company’s strategy across procurement, sustainability and supply chain. He works in close collaboration with cross— functional teams, supporting the company’s energy and water reduction targets. Gabriel holds a Bachelors in Management and Economics and an MBA from Case Western Reserve University.

e uro pe .busi ne ssc hief. com


“To maintain a sustainable, high standard of beer, you have to be dynamic” — Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities, AB InBev Middle Americas

determined, not only by the expertise

computer models which can help to

of the chief brewers, but by the quality

protect against future price volatility.

of materials,” says Guzman. “Without

Robotic process automation has been

that, you cannot achieve the high

another focus. “We can reduce the

standards that we have in the organi-

amount of man hours spent on very

sation.” Regionally, this year, adverse

basic tasks, freeing us up to evaluate

weather conditions led to 50% of the

the procurement function, to think in

barley crop in Mexico being lost. ABI’s

more strategic ways and to add value.

worldwide presence, however, means

We use robots, for instance, to help

that such an eventuality does not spell

with managing and indexing contracts.”

disaster. “In order to find the quality

Another innovation involves the intro-

that we need, the teams have to mobi-

duction of inter-departmental buying

lise globally with all their counterparts

software. “We use a platform similar to

in other regions. To maintain a sustain-

Amazon whereby the different func-

able, high standard of beer, you have to

tions within the organisation can order

be dynamic.”

whatever they need,” says Guzman.

Tying its efforts together is the

“That may be people in marketing, in

deployment of technology. The vola-

legal, et cetera. They can order certain

tility of prices and currencies in the

amounts without approval, which help

region has led to the development of

them to expedite the process.” e uro pe .busi ne ssc hief. com

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AB INBEV

Aside from making easier the work of employees, technology is also serving to improve the quality of raw ingredients. ABI has pioneered an AI technology pilot, internally referred to as a “brain”, which is able to closely monitor the state and health of cargo as it is being shipped. “We can measure the moisture content of the barley being loaded in Denmark, for instance, and then track that moisture content, based on factors such as weather conditions, all across the route from 158

Denmark to Colombia. When the ship arrives, we will know that the barley arrived with X amount of moisture

“My dream is to increase Mexican barley to the highest of international standards” — Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities AB InBev Middle Americas

DECEMBER 2019


content, therefore at the malting process we will only need X amount of energy to convert that barley into malt.” In the near-term, ABI will continue to chase its sustainability targets, covering not just the brewing side of the operation but also manufacturing and the entire distribution network, where it is introducing a number of electric trucks to deliver products. ABI is also furthering its origination programme in Mexico. “In Mexico, we use about 400,000-500,000 tonnes of corn imported from the United States,” says Guzman. “You can imagine the impact to Mexican agriculture if we could buy that from a local grower, instead. That’s precisely what we are trying to do right now by launching a corn origination programme. This year we are going to get to 40,000 but our goal is to get to 400,000.” In the longer term, ABI is interested in consolidating its position in the region. “From an agrodevelopment standpoint the goal is to improve the quality of Mexican barley,” says Guzman. “My dream is to increase Mexican barley to the highest of international standards.”

e uro pe .busi ne ssc hief. com

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160

Legal & General: the ‘Harry Potter problem’ solvers WRITTEN BY

MATT HIGH PRODUCED BY

JAMES PEPPER

DECEMBER 2019


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LEGAL & GENERAL FUTURE VENTURES

Maarten Ectors, Chief Innovation Officer at Legal & General, discusses his team’s approach to solving the most complex digital innovation problems

A

t the moment, we have more demand than we can handle,” says Maarten Ectors, Chief Innovation Officer at Legal & General

(L&G). But, for Ectors and his Future Ventures team, that is no bad thing. He, and the group of innovators he collaborates with, seek out and solve those most 162

critical of business problems – and they answer them in weeks. Ectors has termed such challenges ‘Harry Potter problems’, the type of issues, he says, that “businesses and organisations have tried, and failed, to solve and don’t know who to turn to for a solution. The only course of action left is to go to the innovator that might hold a magic wand in the shape of new technologies or business approaches to solve the problems faster, cheaper and more effectively than anyone else. We’re that innovator.” Ectors joined L&G in June 2017 as Chief Digital Officer with a singular mission: to make insurance smart and exciting with the aim of disrupting the industry. It didn’t take long; the company’s general insurance unit won awards for the most innovative home insurer and best claims technology solution – SmartClaim – of the year in 2018. That same year, DECEMBER 2019


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ÂŁ2,049mn Net income (2018)

1836

Year founded

8,000+

Approximate number of employees e uro pe .busi ne ssc hief. com


LEGAL & GENERAL FUTURE VENTURES

“Have a Harry Potter problem? A critical business problem which others weren’t able to solve? Take it to the innovators that can bring a magic wand, by using new technologies and business approaches to solve your problem 164 in a faster, cheaper and award-winning way”

he assumed his current position in the organisation, taking the same awardwinning approach and building a team focused on solving business problems with the help of innovative technologies such as next-generation blockchain, AI, serverless solutions, mobile apps and chatbots, experimenting with continuous deployment and new business models, in collaboration with some of the world’s most disruptive innovators. Key to the success of the L&G team over the last three years is the innovative mindset which Ectors brought to the organisation. Having previously held roles at businesses such as Nokia Siemens and Canonical/Ubuntu, he was highly experienced in innovation and technology, yet freely admits he had

Maarten Ectors, Future Ventures Chief Innovation Officer, Legal & General

less knowledge of how to bring that experience to an incumbent in a sector that is more traditional in its approach. “Can a 180+ year-old company be a fast innovator?” he asks. “Yes. Innovation is an attitude that you can easily teach to business, technical and support functions. Innovation, and our Harry Potter problem approach is all about mindset. I joined L&G from a technology background. When it came to innovating, I’d previously formed

DECEMBER 2019


CLICK TO WATCH : ‘LEGAL & GENERAL’S CHIEF INNOVATION OFFICER, MAARTEN ECTORS, ON SOLVING THE MOST CHALLENGING ‘HARRY POTTER PROBLEMS’’ 165 startup-like groups, within which we

an award-winning home insurance

would take specific problems or a new

solution that integrates multiple data

technology like cloud computing,

sources and combines technology

create specialised teams and focus

and automation to simplify the claims

solely on those problems for weeks

notification, verification and validation

to come up with a solution. You don’t

processes. “At one of our first meetings,

know what will happen after that time,

we sat with some of the largest brands

and it’s a case of ‘you either do this and

and businesses, including Google,

you do it well, or you don’t’. We never

Oracle, IBM and Accenture, and gave

allowed ourselves a big budget, which

them four key problems and a three-

means you can’t approach things in the

month exercise in solving them – one

normal way, and so have to find a way

was around claims,” says Ectors. “The

to make things work. This is the type

premise really was ‘let’s make it as easy

of thinking we now embrace at L&G.”

as possible for an honest customer

This approach led to SmartClaim,

and as hard as possible for a dishonest e uro pe .busi ne ssc hief. com


LEGAL & GENERAL FUTURE VENTURES

166

customer’, and that became the first

based, uses AI and image recognition

Harry Potter problem.”

to validate the claims and learns as

Testament to the innovative spirit that

it works to improve fraud detection.

drives L&G, a solution was in production

The solution won the best claim

within a remarkable six weeks. Graeme

technology of the year award last year

Findlay, Innovation Delivery Director,

and our Net Promoter Score (NPS)

elaborates: “There’s a really nice

went from negative to 90, which

dichotomy in the product from an

is pretty close to perfect.”

insurance perspective, in making the

The success of SmartClaim marked

act of claiming easy for the genuine

the turning point for L&G’s digital

and hard for the disingenuous.

transformation journey. According to

SmartClaim was born in just six weeks

Ectors, the overriding sentiment in the

from start to finish, and that’s for a full

business at that point, in September

serverless solution that is chat-bot

2018, “was whether we could bring

DECEMBER 2019


this approach to more areas of the business – the remit became ‘let’s innovate all over the company’.” The result of that remit was the development of the Future Ventures team, as Ectors sought to bring the brightest and most willing innovators on board. This includes Future Ventures Director Peggy Loo. “The problem with established businesses is that any innovation is preceded by long cycles of planning, developing business cases and then implementing ideas years in advance. You actually want to get into the mindset of operating with a startup mentality and, through your innovation

E XE CU T I VE PRO FI LE

Maarten Ectors Maarten Ectors is Chief Innovation Officer for Legal & General, the UK’s biggest investment manager, annuity, pension provider and life insurer. Maarten came from a software innovation background. His mission is to launch faster, cheaper and award-winning solutions to critical business problems the industry was not able to solve before, or Harry Potter problems.

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LEGAL & GENERAL FUTURE VENTURES

168

“Can a 180+ year old company be a fast innovator? Yes. Innovation is a mindset that can spread like a virus” Maarten Ectors, Future Ventures Chief Innovation Officer, Legal & General

DECEMBER 2019


169

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and technology, compete with them.

out the opportunities to scale them up.

What I saw very quickly is that the

Despite working within the confines of

startup way of working – being really

one of the largest insurance, pension

innovative, developing ideas rapidly

and investment companies, the team

and proving the concept early before

is resolute in its disruptive mindset:

further development – is how Maarten

“It may sound strange to some, but we

and Graeme were approaching

really feel like a startup company,”

innovation within L&G. It was obvious

says Findlay. “We have a modest fixed

that it should be the way in which we as

budget and culturally we’ve adopted

a wider organisation should approach

a mentality whereby we move very

all our projects. Think like a startup, fail

rapidly, try and fail quickly, and we

fast, fail cheaply and keep innovating.”

don’t waste time reaching decisions.”

Since, Loo, Ectors, Findlay and their

Naturally, that mindset has resulted

Future Ventures colleagues have relied

in the development of several innovative

on the “very repeatable and simple”

new products. This includes new

Harry Potter problem model to identify

Blockchain platform Estua(re), the first

the key ‘problems’ for L&G, and seek

pension risk transfer execution platform

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LEGAL & GENERAL FUTURE VENTURES

driven by blockchain technology. Developed through the use of Amazon Web Services and recognised as a single ecosystem, Estua(re) is capable of driving each stage of the pension risk transfer reinsurance value chain, including pricing, claims handling, financial reporting and collateral using data that is stored on the blockchain. It will, says Matt Bannock, who is leading the blockchain delivery, “greatly reduce the workload of operating contracts and the use of smart contracts, will 172

mitigate the need for reconciliation between insurer and re-insurer, and make it easier for L&G and its customers to interact securely. The system is built on the Hyperledger fabric, which is being supplied by Data Art.” Similarly, the team is in the process of rolling out a new mobile app, first to L&G employees but with the intention of distributing to its customers. The Harry Potter problem in this instance? “Our workplace pension team needed to enhance their mobile proposition to remain competitive in their tendering process,” says Ectors. The driving force behind the app’s development was simplicity. “It collates DECEMBER 2019


“Think like a startup, fail fast, fail cheaply and keep innovating” Peggy Loo, Future Ventures Director, Legal & General a series of functions whereby people can interact with each other, and ultimately customers, into a single ecosystem where services complement each other,” says Loo. “You may wish to speak with a tech advisor or a financial adviser, for example, which in turn may lead you to considering options related to your health, employee share schemes or pension. Ecosystems are important. No one thinks of their life in a single, compartmentalised way anymore. All of our interactions relate to each other. For us, however, it was really important to create a single place where people can access everything they need to and suppliers e uro pe .busi ne ssc hief. com

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DECEMBER 2019


CLICK TO WATCH : ‘LEGAL & GENERAL’S FUTURE VENTURES TEAM: PROBLEM SOLVING, INNOVATION AND TRANSFORMING FROM WITHIN’ 175 can come on board to serve these

done and carry on being as productive

customers and take it in their own

as possible. It’s always all about ‘what

direction. The solution in its early

is your problem, and how can we solve

phases, distributed via employers and

it in the most effective way?’. Whichever

employees. It’s super scalable too –

direction we take our innovation, it

ultimately, people can fully personalise

needs to be faster, cheaper and better.

how they use the app. You have the ability

It’s the Netflix or Amazon mentality,

to collate favourite services, products or

strip away complexity and allow people

content, or to develop it with a particular

to get what they want quickly and simply.”

group or social club in mind.” “We’re making the anti-Facebook

Naturally, developing innovative solutions at the pace in which the

app,” Ectors adds. “We don’t want

Future Ventures team works, requires

people to spend a long time within it.

close collaboration with industry-leading

If you are an employee and you need

partners. The team has a rigorous

something done, you can log in, get it

selection process, according to Sean e uro pe .busi ne ssc hief. com


LEGAL & GENERAL FUTURE VENTURES

O’reilly, Head of Technology Innovation:

important from our perspective is that

“We like to specify one of our Harry

we don’t support people forever.

Potter problems and to set it as a

We introduce the problem followed by

challenge for a number of potential

the technology, but then take a step

partners in the shape of a five minutes

back and expect people to take it

RFI. We’ll expect a presentation on

forward. Collaboration is key through-

potential solutions in as little as week

out the process.”

with a one to three minutes video on

To date, the Future Ventures team at

how easy our problem can be solved.

L&G has achieved spectacular results

Watching the video, we can discard

in a short period of time. It is rare to

solutions in five minutes. Afterwards,

find such an innovative and disruptive

we collaboratively develop the solution

mindset in large corporations but the

with our partners and ultimately spread

spirit that Ectors and his colleagues

it across the business. What’s really

embody is rapidly becoming more

176

DECEMBER 2019


commonplace across the business.

even spreads beyond company

“I see innovation as something that you

borders and changes relationships

inject, and it spreads like a virus,” he

from suppliers to partners as we are

explains. “It shouldn’t be bound by a

seeing from our collaborations with the

team. It’s a way of creating a move-

likes of DataArt, Amazon, Microsoft,

ment where everyone in the organisa-

etc. That’s what drives me and that’s

tions comes together – moving quickly

what I want more of.”

is always best if everyone looks at the same problem from different perspectives and meets at the final solution. We are bringing people together in the organisation to come up with the best possible solutions fast and more cheaply than anyone else. Innovation 177

e uro pe .busi ne ssc hief. com


How Libertex is trading up its tech game 178

WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

JAMES PEPPER

DECEMBER 2019


179

e uro pe .busi ne ssc hief. com


LIBERTEX

Libertex is pushing a cloud-first, big data strategy underpinned by security and agile transformation

F

ounded in Russia, Libertex Group (formerly Forex Club), was originally established as an academy to teach peo-

ple how to trade in Forex. The originators decided to create their own trading platform and take a lead in the market. Five years ago, amid growing instability and regulatory issues in the Russian market, international expansion began in Latin America. Three months later, activating a licence 180

the company held with a Cyprus regulator, Libertex made the move into Europe. During the journey from single market operator to international trading platform provider Chief Information Officer Grant Brett has led the transformation at Libertex. “Five years ago, it took us a quarter to achieve a delivery cycle, but now we’re delivering every day,” says Brett. “We’ve gone through big changes of our culture, technologies and work practices to realise that.” That change of culture began with the IT strategy Brett implemented as part of a threeyear plan that focused on cloud first. “We looked at the five stages of our maturity: Level One being Ad hoc. Level Two, Repeatable. Level Three, Defined. Level Four, Measured, Level Five, Optimised,” explains Brett. “We discovered we were quite low

DECEMBER 2019


181

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CLICK TO WATCH : ‘LIBERTEX – TU SCOUT FINANCIERO’ 183 in the scale, and that a company with

technical mobility with a plug-and-play

20-year-old legacy systems needed

mentality rather than tight integration,”

big transformational changes. We

reveals Brett. “We had to forget about

realised early on we needed to push

the legacy and dispose of technical

a cloud-first, Big Data strategy allied

debt: because when you’re a com-

to security and agile transformation.

mercially driven company things often

Of course, none of this would be pos-

need to be done quickly to meet com-

sible without utilising our competitive

mercial demand.” Operating with a

advantage, the capable people in our

hybrid approach to cloud, Brett’s team

organisation.”

is tasked with implementing DevOps,

The cloud-first strategy at Libertex targeted transforming from monolithic

SysOps and NetOps while preparing for BizOps.

systems to service-oriented archi-

“The game we’re in is the challenge

tecture. “We adopted AWS as our

of balancing commercial delivery with

cloud partner and began focusing on

the architectural purity of our platform,” e uro pe .busi ne ssc hief. com


LIBERTEX

184

says Brett. “As we transition away from

environment could have scaled 320%

monolithic systems we have to make

overnight to cope with that month of

sure the benefits outweigh the cost.

activity. By moving key elements and

We’re seeing plenty of cases that prove

utilising the elasticity of the cloud, we

we’re on the right track. For exam-

were able to scale up easily and back

ple, two years ago the industry was

down after the hype was over.”

gripped by the latest round of crypto-

Helping drive transformation at

currency hype. We offer Crypto trading

Libertex, and making sure it’s ready for

instruments, and in one month our

the next market hype, the company is

traffic increased 320%. The Bitcoin

partnered with Elastic, which offers end-

price was going crazy and without

point security and open source search

having made some of those key trans-

and analytics solutions. Libertex also

formations, we would have been dead

partners with Salesforce for flexible

in the water. There’s no way that our

CRM services managing the sales

DECEMBER 2019


E XE CU T I VE PRO FI LE

Grant Brett A resourceful, analytical, and highly adaptable executive, with a proven background in executive board level leadership, as CIO & Transformational leader at Libertex, Grant Brett formulates strategies and tactical improvements that consistently exceed ROI expectations. “I offer expertise in driving operational excellence and major projects that meet organisational objectives, while propelling transformational improvements, building key alliances, and high-performance teams,” says Brett, the former CIO/CTO of Goldbet Sportwetten and Betonline.com. “I’m consistently defined by exceptional identification and implementation of significant cost savings initiatives company wide, while managing small and large business transformation initiatives that exceed $40mn, and guiding a staff of 300 specialists, exceeding all challenges through critical thinking, and business intelligence expertise.” Brett’s background working across a diverse range of industries, from manufacturing and distribution to banking and telecommunications, has seen him develop the flexibility to meet a variety of challenges while dealing with diverse cultures and delivery schedules focused on optimising environments, saving money, building teams and developing systems.

e uro pe .busi ne ssc hief. com

185


LIBERTEX

organisation, sales targets and core

“Because we’re a mobile first company, we’ve had to spend a lot of time and effort to simplify the mobile space and make it a fast pathway for our customers to understand trading” — Grant Brett, CIO & Transformational Leader, Libertex

customer interactions. “We’ve also used some interesting tools to help us in that journey towards real-time CRM,” adds Brett. “Mixpanel have also helped us with our customer communication tools.” Meanwhile, the company’s own internal communications have been given a boost through its recent association with CommPeak. The leading VoIP provider was brought in to enhance connectivity and improve the efficiency

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KE E P I N G L I BERT EX I N T HE GAM E

The common theme with any ecommerce business is acquiring, converting and retaining the customer,” reasons Grant Brett, CIO & Transformational Leader at Libertex. “They’re absolutely similar in terms of process and strategy. The only thing that’s different is the ‘game’. So, the dynamics of the particular ‘game’ is really only a small part of the overall process f low. Having that experience in different industries (gaming, manufacturing, banking, telcos) helps me guide our team to apply learnings that can improve our trading platform.” Brett recalls that four years ago he realised the company needed to build a bonus engine but faced resistance from old school thinking that dictated that’s not how things are done with Forex. “I remember saying, ‘guys, we need to build a bonus engine and be running hundreds of campaigns every day to attract customers.’ Of course, it’s all changed now because the market’s become more competitive, while regulation has become much tighter. I’m here to make sure we look outside of our bubble at what other industries, like gaming, are doing to make sure we maximise the potential for our business.”

e uro pe .busi ne ssc hief. com

187


LIBERTEX

188

“The game we’re in is the challenge of balancing commercial delivery with the architectural purity of our platform” — Grant Brett, CIO & Transformational Leader, Libertex

DECEMBER 2019


of staff collaborations with a range of multi-channel engagement solutions (VoIP, SMS, DID, PBX, Dialer). Brett also notes the importance of working with reseller IndigoSoft. A company with many years of experience on software development projects for financial clients, IndigoSoft develops IT systems for brokerage companies and investment funds. It also has expertise in connecting to different liquidity providers and electronic stock exchange gateways, including the integrated software of third-party trading platforms. Rising to the challenges posed by the need to meet the demands of commercial delivery, Brett believes the solution is more than just technology. “It’s about people,” he says. “Changing people’s thinking, let’s say, from hosted to cloud environments, where they need to start considering the economics of what they’re delivering, how it’s going to be deployed and used. That was a big issue for us. Introducing a message broker met with resistance. When you’re used to dealing with monolithic systems, point-to-point integration is rare, but when you start e uro pe .busi ne ssc hief. com

189


LIBERTEX

moving into service-oriented architecture then you need to have a message box. But when people get it, the lights come on and everyone’s on board. Thanks to our close relationship with AWS we’re migrating everything to Kafka. The world’s changing a lot, particularly with third-party integrations, now it’s all about data streaming, so Kafka is helping us a lot.” Brett notes that Libertex is unique among trading platforms as it’s closely aligned to a much stronger control 190

1997

Year founded

2.2mn+ Clients worldwide

700

Number of employees

over risk while reacting to market trends for mobile products. “Margin trading is quite a risky product, but the stakes that you make when you go about opening a trade, the stake that

“We’re keeping pace with the key issues around Big Data, introducing agility and managing security, while ensuring our platforms are scalable. We’re not aiming to be bleeding edge, but we’re in the game” — Grant Brett, CIO & Transformational Leader, Libertex

DECEMBER 2019

you trade, is the limit of your risk,” he explains. “Because we’re a mobile first company, we’ve had to spend a lot of time and effort to simplify the mobile space and make it a fast pathway for our customers to understand trading. We’re looking at creating a different window of opportunity for people to trade with us. If they’re on their mobile, it’s easy to do, they can make a trade and monitor it on the move. It’s not like you imagine a trading desk with several


“We’re always evolving and finding new ways to work with product launches reaching the market,” says Brett. “We’re keeping pace with the key issues around Big Data, introducing agility and managing security, while ensuring our platforms are scalable. We’re not aiming to be bleeding edge, but we’re in the game.” That game is good to go globally, with Libertex setting sights on addressing performance in South America and Asia. “We’re looking at ways we can break up our environment so that we can distribute it worldwide and address any performance issues,” confirms Brett. “Again, AWS has been very helpmonitors at a control station. Our mar-

ful to us in this space. There’s always

ket is to bring people into the world of

a training or security issue to address,

trading because it’s already quite com-

but the commercial side of the busi-

petitive at the top end. We’re looking to

ness has all the tools it needs to be

expand the market from the bottom.”

successful. Looking ahead to 2020,

The pace of change at Libertex in the

now is the time for us to focus on devel-

past 12 months may have been swift

oping an IT-excellence programme, so

but Brett is proud that his IT team has

that we’re actually confident that data

risen to the challenge and technology

is good, performance is good, security

hasn’t been the bottleneck. The com-

is good, and we’re eliminating what’s

pany’s development centre in Belgrade

left of the monolithic solution.”

has taken on new staff (the IT department has swelled from 90 to 170). e uro pe .busi ne ssc hief. com

191


192

DECEMBER 2019


193

The procurement transformation of Erdinger Weissbräu WRITTEN BY

HARRY MENEAR PRODUCED BY

CHARLOTTE CLARKE

e uro pe .busi ne ssc hief. com


ERDINGER WEISSBRÄU

Florian Eineder, Head of Procurement, discusses his vision of a first-of-its-kind procurement transformation at the private brewery Erdinger Weissbräu

B

etween 2004 and 2018, Florian Eineder worked in the solar power, trucking, oil and gas, chemical, utilities, market

research and procurement consulting industries. He moved onwards and upwards in the procurement divisions of the world’s most important companies, 194

leading global teams and driving transformation at speed and scale. Even early on a Friday morning, with the weekend firmly in sight, his voice is bright and energetic over the phone, rising to laughter as we ask the obvious question. “Why did you decide to go and work in a brewery?” “Come on,” he chuckles. “Isn’t that obvious?” Of the dizzying varieties of beer brewed around the world throughout history, wheat beer has one of the most interesting stories. A passionate beer lover, Eineder chose the brewery that reigns supreme in the wheat beer niche: Erdinger Weissbier. The roots of wheat beer date back to ancient Egypt. Its properly documented history only began around 500 years ago in the Duchy of Bavaria. At the time, beer made from wheat was quite

DECEMBER 2019


195

e uro pe .busi ne ssc hief. com


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© 2019 SAP SE or an SAP affiliate company. All rights reserved.


197

controversial, as wheat was important

‘common,’ and no longer the province

to the bread baking process. From 1567

of the aristocracy. Noble or common,

onward, the use of wheat for brewing

wheat beer’s spiritual home has always

beer was even forbidden throughout

been IN Bavaria, where 90% of all wheat

Bavaria. Over time, a number of elec-

beer sold in Germany is brewed. Today,

toral breweries emerged throughout

the state is home to more than 1,000 dif-

the country in which the local rulers

ferent beer brands.

were allowed to have wheat beer brewed

The most prominent of those brands,

on payment of a special duty. However,

Erdinger Weissbräu, can trace its ori-

it was only when new brewing tech-

gins back to 1886, the year in which the

niques led to an improvement in the

construction of a wheat beer brewery

quality of brown beers in the mid-

in the Bavarian town of Erding was first

18th century that wheat beer became

officially recorded. Today, the mid-size e uro pe .busi ne ssc hief. com


ERDINGER WEISSBRÄU

“When you work at a smaller company like Erdinger you really have to be as effective as possible, as quickly as possible. There’s no time for bells and whistles” — Florian Eineder, Head of Procurement, Erdinger Weissbräu

198

DECEMBER 2019


brewery produces around 1.8mn hl

Today, as the world becomes an

(2018) of wheat beer per year.

increasingly complex and digitalised

Its longevity and success are based on

place, Erdinger is undergoing

the four cornerstones of the company’s

a first-of-its-kind procurement transfor-

philosophy: quality of the product

mation. we spoke with Eineder (sadly,

above all, a dedication to wheat beer,

not over a stein of wheat beer) about

appreciation of the employees and

his decision to leave one of the world’s

straightforward brand management.

largest consultancies for a 530-person

Erdinger makes no compromises

beverage company, how he’s driving

when it comes to quality, premium

a cultural and digital procurement

ingredients and its passion for

transformation across the more than

Bavaria’s cultural heritage.

130 year old brewing operation, and 199

C O MPAN Y FACT S

Market-altering innovation with Erdinger Alkoholfrei Innovative decision making has always been a part of Erdinger’s strategy. The decision to position Erdinger Alkoholfrei as an isotonic drink for athletes was no different. This shook up the market and helped kickstart the entire non-alcoholic beer market. The brand soon established itself as the leader in Germany and has helped maintain the overall growth momentum for non-alcoholic beers.

Around the world, non-alcoholic beer is typically seen as the responsible choice for designated drivers who are tired of mineral water. In Germany, it has another role: the perfect drink for athletes and active people. “It helps to recover much faster. As an athlete or a sporty person, drinking an alcohol-free wheat beer after training provides the body directly with valuable ingredients, satisfies thirst even faster and is completely natural,” says Eineder.

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“I was looking for a company where you can really move something, make a difference” — Florian Eineder, Head of Procurement, Erdinger Weissbräu

how I came to Erdinger. I really like the company’s philosophy – taking care of each other, being close, being one team.” Upon taking the job, he assumed responsibility for Erdinger’s entire external spend. “Everything from hops, barley, wheat, yeast, glass bottles, bottling machinery, glasses, labels, label printers, cases, packaging, trucks, cars, the buildings to put them in, that’s all my team and me,” he explains.

Erdinger’s new role as the first

“We do actually have our own well at

brewery to implement SAP’s

the brewery, so I don’t need to buy

S/4HANA.

the water, which is nice.”

Eineder took on the role of Leiter Einkauf (Head of Procurement) in February 2018. “I had this very broad spectrum of experience — all in procurement of course,” he

When Eineder arrived at the company, its procurement function was very classical. Purchasing was regarded mainly as a back office function, and its success was mainly tracked by the number

recalls, “but I was not happy

of purchase orders made

with where I was. My last

throughout the year and the

project was outsourcing

savings that were negotiated

7,500 jobs, while the people

per purchase order. “Having

at the top were making mil-

worked for so many different

lions. From my perspective,

companies in so many differ-

that’s not how it should

ent industries, I had seen that

work. So, I was looking for

everyone is facing more or

a company where you can

less the same problems: opti-

make a difference. That’s

mising the external cost e uro pe .busi ne ssc hief. com

201


ERDINGER WEISSBRÄU

“We are the first brewery to implement SAP S/4HANA as a full scale adoption” — Florian Eineder, Head of Procurement, Erdinger Weissbräu

202

DECEMBER 2019


203

e uro pe .busi ne ssc hief. com


ERDINGER WEISSBRÄU

204

1886

Year founded

$600mn Revenue in dollars

530

Number of employees DECEMBER 2019

position while keeping quality at a high level and increasing the efficiency of the procurement function. The difference is, when you work at a smaller company like Erdinger, you really have to be as effective as possible, as quickly as possible. There’s no time for bells and whistles,” says Eineder. At Erdinger, roles that would be dealt with by a 20-person team in a larger corporation are handled by a single individual; the consequences of decision making are felt faster and more


clearly than in bigger companies, leav-

catalogues, etc, but there’s also

ing little room for error.

a huge mindset change within the

Now, Eineder is driving a cultural

whole company that needs to be

and digital transformation across

accomplished.” Digital transformation

Erdinger’s procurement department

without a reimagining of culture and

centred around the integrations of

business process can never be suc-

two pieces of enterprise software:

cessful; George Westerman, a

SAP Ariba and SAP S/4HANA.

principal research scientist at MIT

“We’re going to get rid of as many

Sloan notes that, “when digital trans-

operational activities as possible,”

formation is done right, it’s like a

he explains. “There are technical

caterpillar turning into a butterfly,

challenges, of course, when it comes

but when done wrong, all you have

to implementing the software, the

is a really fast caterpillar.” For Eineder 205

E XE CU T I VE PRO FI LE

Florian Eineder Enthusiastic, professional and with a huge amount of experience, Florian Eineder is leading the procurement function at Erdinger Weissbräu and driving important change across the organization. His specialties include using procurement as an enabler and developing teams into business partners to stakeholders in order to drive corporate strategies and promote business goals. He is driving the digitalisation of Erdinger along with a strong focus on ROI with the necessary caution. Florian has 15 years’ experience in procurement divisions of the world’s most important companies, in leading global teams and driving transformation at speed and scale. e uro pe .busi ne ssc hief. com


ERDINGER WEISSBRÄU

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UV ink frosted relief glass including relief printing Erdinger Exclusive 0,5 l

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207 to effect a meaningful transformation

is the decision to position itself as the

across the brewery’s purchasing and

most progressive brewery at the fore-

procurement processes, that mindset

front of digital innovation with a new,

change has been essential. “It was

cutting edge ERP. Erdinger worked

and still is important to take every

successfully for many years with its

employee with us on this journey,”

previous legacy system. However,

he says. “We must ensure that digital

due to the company’s constant growth

transformation is seen as an opportu-

and the new digital requirements

nity and a necessity, not as a fashion

of an ever-evolving world, the system

phenomenon or even as a job destroyer.

reached its limits; more and more pain

Therefore, openness, transparency

points were discovered. This disruption

and a lot of communication are

isn’t unique to Erdinger; companies

non-negotiable.”

in every sector are faced with legacy

In addition to a new procurement

processes that are in need of moderni-

solution, perhaps the most disruptive

sation and optimisation. Erdinger’s

change that Eineder is implementing

growth has, for many years, been e uro pe .busi ne ssc hief. com


ERDINGER WEISSBRÄU

driven by the quality and individuality of its product, but the company’s backend processes have not grown in tandem. “The bigger you get, the more difficult it gets to put your processes in order and have a cost effective workforce setup,” says Eineder. Erdinger decided to go with a new ERP system and face this mammoth task. “We’re implementing S/4HANA, which is sleek, modern and innovative. We are the first brewery to do this as a full scale adoption. It’s a showcase project; if it works 208

for us, then all the other breweries are going to start switching over to S/4HANA. We meet the brewery’s demand for innovation which is also evident throughout the departments of the company,” explains Eineder.

“It was and still is important to take every employee with us on this journey” — Florian Eineder, Head of Procurement, Erdinger Weissbräu DECEMBER 2019


209

Looking to the future, Eineder is

base in order to generate the most value.

excited to be bringing procurement

I think this kind of orchestrating function

out of the back office and into a place

is where the procurement department

that’s more relevant to the overall busi-

in most companies wants to go.”

ness. “Procurement is a driver for all sorts of things: for cost, innovation, risk management, and efficiency,” he says. “Going forward, I want to manage the relationship between internal stakeholders and external supply e uro pe .busi ne ssc hief. com


210

Packaging solutions to solve sustainability WRITTEN BY

OLLIE MULKERRINS PRODUCED BY

CAROLINE WHITELEY

DECEMBER 2019


211

e uro pe .busi ne ssc hief. com


H U H TA M A K I H O N G K O N G

212

Huhtamaki works with clients to find the most practical sustainable solutions to increase revenue without impacting the environment

H

uhtamaki is a global specialist in the food and drink packaging industry. The company

operates across 35 countries including Europe, Asia, Oceania (EAO) and the US, working across three verticals; flexible packaging, moulded fibre packaging and foodservice packaging. Through these key verticals, Huhtamaki holds sustainability at its core and ensures that it offers an increasingly diverse portfolio of sustainable products and practices to satisfy the rising demand for CSR coming from a more

DECEMBER 2019


213

conscious consumer base. Chi Lu, Head of Sourcing –

to a functional sourcing organisation working within the Foodservice EAO

Foodservice Asia-Oceania at

segment,” explains Chi. “For sourc-

Huhtamaki, outlines the challenges of

ing, I’m part of a group function. Our

maintaining a network of sustainable

team supports manufacturing units in

products across distant locations and

India, New Zealand, Australia, China

evolving cultural shifts. Chi is respon-

and Malaysia, totalling seven factories

sible for the governance of sourcing

and four sales offices operating in the

operations in the Asia Oceania region

Asian Oceania region.”

within the Foodservice segment and

The complexities of finding sustain-

is accountable for managing five

able materials produced by sustainable

direct reports for the traded goods.

manufacturers, who take social respon-

He coordinates projects between

sibility seriously, provides its own

the group and local units. “I belong

challenges. To eliminate the ambiguity e uro pe .busi ne ssc hief. com


H U H TA M A K I H O N G K O N G

“In terms of changing from plastic to a more sustainable alternative, there is no challenge – it simply must be done” 214

— Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki

of operating in smaller departments across a diverse range of countries and cultures, Chi has turned to creating a sourcing hub for traded goods in the Asia Oceania region, where suppliers and materials can be vetted through a single aligned process and set of regulations. To maintain consistency across all of its sourcing methods, Huhtamaki Foodservice EAO has chosen to apply a single centralised sourcing model within its group level. “In the group sourcing organisation, we have a sourcing director who is based in Europe for all the sourcing functions operating with our category buyers,”

DECEMBER 2019


CLICK TO WATCH : ‘PLEASE MEET HUHTAMAKI’ 215 says Chi. “The group function will cen-

practicality of what a material can do

trally source key raw materials, paper,

when trying to replicate the versatility

polymer, resin, ink and logistics for the

and robust nature of plastics. Some

segment manufacturing units. My team

materials may require additional chemi-

looks after third party traded goods

cal additives to achieve a level of quality

and we are based in Asia.”

in line with what a consumer may be

When looking to find alternative

used to from traditional materials.

materials, a number of factors must be

“There are instances where a client

considered beyond the tangible assets

may be used to plastics, yet when turn-

being offered by a prospective sup-

ing to sustainable materials, has very

plier. Maintaining sustainability can be

high standards. Not every supplier will

easy to overlook with the production

pass those strict requirements,” affirms

methods or workforce conditions used

Chi. Another challenge to replacing

to manufacture any given material. As

traditional material like plastic is main-

a juxtaposition to this there is also the

taining its long-term sustainability. An e uro pe .busi ne ssc hief. com


H U H TA M A K I H O N G K O N G

216

1920

Year founded

example “typical alternative to plastic utensils is wooden cutlery made from birchwood. Birch tree usually takes about 20 years to mature. In the US

€3.1bn+

alone, there are about 40bn plastic utensils used each year. If you intend to

Total Revenue

replace all 40bn units annually, the end

3,200

considered as a whole. With this in mind,

Number of employees

product wouldn’t be sustainable when we ensure our suppliers source their raw material from a sustainable source.” Huhtamaki is also a creator of sustainable materials. It’s Fresh initiative created a meal tray from natural wood

DECEMBER 2019


E XE CU T I VE PRO FI LE

Chi Lu Chi Lu is an experienced senior strategic sourcing professional with industry experience spanning close to 20 years. He has worked for multinational corporations in Australia, New Zealand and Asia. His work portfolio is extensive, including logistics, medical consumables, dairy, building products/construction, and food packaging. Chi is recognised for his proven track record of improving profitability by delivering sustainable cost saving and being a driving force behind transforming from a transactional price based approach to a strategic focus value proposition model. He has influenced business decision making processes, challenged the status quo, and contributed to the growth of businesses. He has participated in organisational transformations and commercial optimisation projects which have contributed to the growth of businesses considerably. In his current portfolio he is part of a regional leadership team and is currently managing sourcing and sales operations. Prior to this, he served in various sourcing and commercial positions. He has a Bachelor’s Degree in Management Studies with a double major in Finance and Strategic Management and a Master’s Degree in International Business and Law from the University of Sydney. e uro pe .busi ne ssc hief. com

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Quality assurance PPD focuses mainly on thermoformed plastics in food packaging industry. Using high-speed in-line automatic forming machines along with in-house tooling and design team, plus in-depth industry knowledge and expertise in production, we will ensure high quality products to our customers. Learn More


“Our team supports manufacturing units in India, New Zealand, Australia, China and Malaysia, totalling seven factories and four sales offices operating in the AO region.” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki fibres, sourced from FSC certified

a natural alternative to provide one

renewable Nordic forests, in collabora-

solution with the resilience of plastic

tion with Saladworks and Södra. The

packaging. Bagasse is the dry pulpy

material can match the versatility of

fibrous residue that remains after sug-

black plastic but is still recyclable

arcane or sorghum stalks are crushed

and certified for home composting.

to extract their juice. This material can

“Huhtamaki Fresh has ensured

then be processed to create a biode-

the removal of 56 tonnes of hard to recycle black plastic from Waitrose

gradable plastic alternative. The perception of sustainable products can sometimes

& Partners supply chain,

be different from the

per year. The fibre-based

reality. Consumers

packaging is also 10%

may expect sustainable

lighter than conventional

materials to behave

trays and creates a 50%

a certain way on first

reduction in CO2 Emissions,”

impressions without

comments Tor Harris, Head

knowing the details behind

of CSR at Waitrose & Partners.

it. For example, there are

Chi has also turned to Bagasse,

instances of materials that e uro pe .busi ne ssc hief. com

219


H U H TA M A K I H O N G K O N G

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“We ran trials, product samples and negotiated the commercial terms” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki

may be listed as biodegradable but require certain conditions to act as a catalyst in order to achieve that degradation, such as PLA. “PLA is made from starch and other compound which may be able to decompose into a carbon in a controlled environment; that is industrial composting facilities,” says Chi. “However, there are places that don’t have the industrial composting facilities needed to start this decomposition. Putting it into a landfill is not enough.” Huhtamaki is also educating

DECEMBER 2019


customer’s requirements, ensuring a satisfactory outcome for the business and the environment. Chi explains one example where Huhtamaki Foodservice EAO worked with its client to reach a sustainable and economically viable solution. “Our customer’s goal was to find an alternative to plastics by 2020. We were able to work with our customer, understand their requirements, and from there we ran supplier selection, trials, product samples and negotiated the commercial terms. The sourcing and product development process ran within our customer’s specific time line and, by the end, we were able to remove plastics in that supply chain.” customers around achieving sustaina-

The demand for sustainability is ris-

bility whilst maintaining high standards

ing as consumers are unable to ignore

for product packaging. The Packaging

the realities of a future reliant on sin-

for Good programme focuses on

gle use products manufactured from

four key themes – people, packaging,

pollutive materials.

supply chain and operations – to offer

“Sustainability is on top of the

Huhtamaki’s expertise and guidance

agenda for Huhtamaki,” summarises

for a company’s CSR goals and within

Chi. “In terms of changing from

Huhtamaki itself.

unsustainable to more sustainable

By educating consumers on the realities of sustainable materials, Huhtamaki

alternatives, there is no challenge - it simply must be done.”

Foodservice EAO segment is able to work with customers to find which materials would best accommodate the e uro pe .busi ne ssc hief. com

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Profile for Business Chief Europe

Business Chief Europe Magazine – December 2019  

Business Chief Europe Magazine – December 2019