EUROPE EDITION JANUARY 2020 europe.businesschief.com
The future is exciting, the future is about innovation
Transforming procurement through innovation
DELIVERING A STRATEGIC PROCUREMENT FUNCTION IN SECURITY Robert Copeland on the importance of embracing change management in supply chain
DIGITAL____ DISRUPTORS
City Focus
PRAGUE
sustain peak performance.
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FOREWORD
W
elcome to the January edition
shares her insight on how digital
of Business Chief Europe.
culture has evolved over the last
We kick 2020 off by hearing from a great range of c-level executives from across Europe, such as Steve Caddell, Group Procurement Director at OCS Group UK, Sławomir
25 years. “Digital skills translate into any regional market and what digital culture teaches us is that, on the whole, we’re more similar than different,” she tells us.
Kluszczyński, Chief Operating Officer
Business Chief also takes a look
at LOTTE Wedel and Justus Wiede-
at the top 10 digital disruptors across
mann, Group Sustainability Officer
Europe, as well as a closer look
at Corestate Capital.
at the city of Prague.
This month’s coverpiece features an exclusive interview with Robert
Do you have a story to share?
Copeland, Group Procurement Direc-
Please don’t hesitate to get in touch
tor at G4S, who shares the essential
and you could be featured in our
components of embracing change
next issue.
management in the supply chain space, explaining that “the key to embracing change management is to recruit the right people with the correct skill sets.”
Enjoy the read! Amber amber.donovan-stevens @bizclikmedia.com
For our first lead feature of the year, we speak with Caroline Foster-Kenny, CEO, EMEA, IPG Mediabrands, who e u r o p e . b u s i n e s s c h i e f. c o m
03
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EUROPE EDITION
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CONTENTS
G4S
12
26
40
48
66 City Focus
PRAGUE
76 58
DIGITAL___ DISRUPTORS
CONTENTS
92 OCS Group UK
104 LOTTE Wedel
120 CORESTATE Capital Group
134 Goiko Grill
12
JANUARY 2020
DELIVERING A STRATEGIC PROCUREMENT FUNCTION IN SECURITY WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
CHARLOTTE CLARKE
e uro pe .busi ne ssc hief. com
13
G4S
Robert Copeland, Group Procurement Director at G4S, discusses the importance of embracing change management in the supply chain space
A
s the world’s leading integrated security company, G4S is renowned for providing a broad range of security services in an
increasingly connected and complex world. With 45,000 suppliers across 90 countries supporting 540,000 employees, G4S operates an 14
extensive supply chain that is truly global. Helping to ensure G4S’ supply chain runs efficiently, Robert Copeland, Group Procurement Director at the company, believes he has the right procurement strategy in place to deliver sustained value creation and supply chain performance. “It’s critical that you have a procurement function able to not only present clear solutions, but also have the willingness to lead the proposed improvements to embed effective change” explains Copeland. “In the security industry, where margins can be tight and high operating standards are a must, it’s essential to operate a supply chain that delivers the right blend of cost, quality and performance to underpin the growth.” Over the past two years, G4S has invested in transforming procurement from being a tactical JANUARY 2020
15
cost reduction function to becoming an effective supply chain advisory, able to conceptualise, develop and implement true supply chain performance betterment with a bottom-line impact. Copeland highlights the importance of procurement providing more than just a route to market. “We can’t just be a one trick pony. It’s critical we create a wideband value proposition which offers more than a way to finding suppliers and negotiations,” he affirms. “Otherwise, procurement as a function runs the serious risk of e uro pe .busi ne ssc hief. com
G4S
“ There is a clear appetite and need for a truly strategic procurement function in every region” — Robert Copeland Group Procurement Director, G4S
extinction, as traditional procurement tasks become increasingly automated in the coming years.” Supply chain value is often measured through the bias lens of supplier cost vs. performance. However, Copeland believes that leadership must ensure the supply base is also fit for purpose from an ESG (Environmental, Social and Corporate Governance) angle. “A complex global security business demands a supply chain which satisfies the company’s ESG obligations, as this can provide great comfort
16
to a progressive customer or socially
JANUARY 2020
CLICK TO WATCH : ‘G4S SECURE SOLUTIONS: SECURITY SYSTEMS’ 17 responsible investor and thus become
(EMEA) in 2019, followed by North
a competitive advantage for the busi-
America in 2020 and the Asia Pacific
ness,” he explains. “For example, of
and Latin America regions a year later.
the top 50 asset managers globally,
“There is a clear appetite and need for
90% are signatories to the United
a truly strategic procurement function
Nations Principles for Responsible
in every region,” affirms Copeland. “My
Investment. This means that investors
vision of procurement is to demon-
are increasingly looking at the ESG
strate how our experience, leadership
health of a business when making
and work ethic will drive improvement
investment decisions.”
to the company’s bottom-line. The
Having devised a three-year priori-
key to our success is ensuring that
tised plan for procurement, Copeland
we focus on three core aspects:
has a clear vision on how he sees this
Does this procurement solution make
being introduced worldwide, starting
things better for the end customer?
with Europe, the Middle East and Africa
How does the solution improve the e uro pe .busi ne ssc hief. com
Procurement Savings Management We’re proud that our Savings Manager tool is one of the enablers helping to transform procurement at G4S. Powerful and flexible, the Savings Manager has been supporting organisations at all stages of their procurement journey since 2014. Let your team plan, manage and report the benefits they are delivering with confidence and clarity in our easy-to-use tool. For a discussion or a demo, please contact us today.
Learn More
UK: +44 (0)20 3287 7607 USA: +1 312 957 5723
2004
Year founded
90
Countries of operation
business, I’ve scaled the procurement headcount on the pipeline of identified activities. This has yielded a 10:1 Return on Investment (ROI) over the past two years. This resourcing approach can be tough for the team; however, everyone has found the dynamic environment to be a great development opportunity and this has allowed us to attract some
540k+ Number of employees
of the best candidates in the industry to work in our procurement team.” Copeland believes that having the capabilities to lead and manage change is critical to achieving success. “If we don’t master the change
operating cash flow and profit? Does
agenda, we’ll always be framed by
the business have the capacity and
those who see procurement as no
the capability to implement these
more than a dressed up purchasing
changes? Without fully understanding
function, ripe for outsourcing or auto-
these three elements, the chance of
mation.” Becoming a leader in its field
success is greatly reduced and can
is a difficult feat for any business to
result in a poor change outcome, as
accomplish, however, retaining that
well as weakening the business per-
position of market leadership has
ception of procurement.”
become even more challenging in
Another challenge facing G4S is
recent years. As a result of this, it
to provide high-quality procurement
is essential that G4S avoids com-
capabilities in a lean environment
placency and remains on top of the
where there isn’t the luxury of resource
latest supply market solutions to fuel
overcapacity. “To ensure we’re able
continued growth. “To achieve suc-
to meet the evolving needs of the
cess, procurement not only needs e uro pe .busi ne ssc hief. com
19
G4S
“ It’s the ability to influence change that really sets us apart” — Robert Copeland Group Procurement Director G4S 20
commercial acumen, but to secure
he explains. “The key to embracing
the trust of the business to implement
change management is to recruit the
ideas,” says Copeland. “To highlight
right people with the correct skill sets.
the scale of the supply chain, 25% of
It’s the ability to influence change that
G4S revenues are spent with its sup-
really sets us apart. It’s vital that our
pliers and subcontractors. Supplier
procurement team is agile, curious and
performance does impact customer
mentally prepared for change because
experience and any supplier shortfall
if we aren’t, we’ll have put ourselves
would ultimately be a G4S failure in
at a huge disadvantage.”
the eyes of the customer. Businesses
With companies beginning to
are looking to drive change, but they
accelerate the digitisation of their
often don’t know the best way so it’s
business plans, technology is
a fantastic opportunity for procure-
becoming an increasingly prominent
ment to take leadership in the space,”
component to successful operation.
JANUARY 2020
21
E XE CU T I VE PRO FI LE
Robert Copeland Robert Copeland is the Group Procurement Director (CPO) for G4S, the global outsourcing and security company, responsible for global procurement operations across 90 countries. Joining G4S back in 2015, Copeland is based in London, United Kingdom. He was appointed to turn procurement into a business competitive advantage, through cost leadership, supplier risk management and supply chain innovation. Prior to G4S, he headed up Non-IT procurement at the Post Office and in this capacity was heavily involved in the establishment of the newly created Post Office procurement function and the divestment of Post Office from the Royal Mail.
e uro pe .busi ne ssc hief. com
G4S
23 However, Copeland believes in a lean
Do I know the true value that I’m trying
business and explains that it’s impor-
to deliver? In what ways can I reduce
tant to strike a balance. “We tend to be
risk and cut costs? Can I increase prof-
patient and not rush into introducing
itability? Because more often than not,
new innovations for the sake of it.” He
projects that should be halted become
affirms that it’s vital to continuously
vanity projects, centred more around
question exactly what value technolog- technology for the sake of it rather ical innovations will bring. “You should be cautious and insightful over any
than the value they bring.” G4S is currently rolling out a global
proposal. There are numerous systems
ERP system with Oracle to enable it to
and technologies that promise the
use a series of worldwide buying chan-
earth, but many are unlikely to deliver
nels to reduce the complexity of local
on what it says on the tin,” he explains.
supply chains. “It’s set to give buyers
“It’s important to consider and question: greater visibility and control over what, what is the problem I am trying to solve? where and when something’s been e uro pe .busi ne ssc hief. com
G4S
bought,” explains Copeland. “We’re technology agnostic, having formed several relationships with agile companies such as Provalido and Market Dojo, along with a newly developed inhouse supplier contract management eco-system. The adoption of Market Dojo’s eSourcing platform has empowered the G4S team to accelerate large and complex tenders, as well as run competitive on-demand eAuctions. In addition to the obvious benefit of cost savings, these tools have helped the 24
JANUARY 2020
“ The key to embracing change management is to recruit the right people with the correct skill sets” — Robert Copeland Group Procurement Director, G4S
team greatly reduce the time to market.” Copeland recognises the true value in establishing mutually beneficial business relationships across all spend categories. “We already have a number of strategic partnerships in place for telecoms, fleet and workwear and we’re in the process of developing others across a wide spectrum of goods and services. Success revolves around working with our suppliers to deliver and embed critical business change.” With the security market showing no signs of slowing down in future years, Copeland affirms the future for G4S and the wider industry is extremely bright. “We’re in a great position to benefit from the growing but rapidly changing security market,” summarises Copeland. “It’s estimated that the global security market will be worth $245bn by 2020 — it’s an exciting place to be.”
e uro pe .busi ne ssc hief. com
25
LEADERSHIP
NO LONGER ‘JUST’ A MEDIA BRAND 26
Caroline Foster-Kenny, CEO EMEA at IPG Mediabrands, shares how digital culture has transformed the wider media industry WRITTEN BY
AMBER DONOVAN-STEVENS
JANUARY 2020
27
e uro pe .busi ne ssc hief. com
LEADERSHIP
I
understand that you’ve been with IPG Mediabrands for three years. Could you tell me a little bit about
how you came to be CEO EMEA and
your main responsibilities in this role? I joined IPG Mediabrands after spending many years at WPP. I had a wonderful time so leaving was hard, but I needed a fresh challenge. As global brands were – and still are in many cases – reinventing themselves for a digital-first world, they needed partners that were of a certain 28
scale but still nimble enough to act quickly. IPG occupies that space: it’s in what I call the ‘Goldilocks’ zone, so it felt like an exciting place to be. I’m responsible for driving transformation across EMEA – in simple terms. My job is to enable and accelerate growth, both for the business and for our clients. On a personal level, my ambition is to make IPG Mediabrands the most progressive media network on the planet. In the 25 years you’ve been in the industry, how have you seen it evolve? The media landscape was very different in the mid-90s. Newly established media agencies were vying with old school ad JANUARY 2020
29
e uro pe .busi ne ssc hief. com
LEADERSHIP
30
agencies for clients, and the
Has digital culture affected IPG
newcomers were viewed with
Mediabrands across Europe,
some scepticism.
the Middle East and Africa in
Things look very different now.
different ways?
Paid ads aimed at a mass audience
Our business is made up of multiple
still have a part to play in brand
experts. The specialists – a coder or
building, but owned and earned
data scientist, for example – may be
media have moved up the pecking
required to support a client project
order as a strategic driver for
anywhere within the network, and that
business growth. It feels like there’s
may be remotely or on the ground. The
a new order; media agencies now sit
key thing is you need to be agile enough
firmly at the top table, and with data
to call on this specialism at short notice.
in the mix, we’re in a position that can only get stronger. JANUARY 2020
Digital skills translate into any regional market and what digital culture teaches
us is that, on the whole, we’re more similar than different. Of course, there are regional nuances and a ‘one world’ view doesn’t work, but you trust in your local account team to manage that. As each client’s need is slightly different, how do you approach the creation of new models and solutions to suit them? There’s no single solution as every client has particular business needs. You can’t expect them to bend to your way of working, so the first step when planning a strategy for a new client
“ DIGITAL SKILLS TRANSLATE INTO ANY REGIONAL MARKET AND WHAT DIGITAL CULTURE TEACHES US IS THAT, ON THE WHOLE, WE’RE MORE SIMILAR THAN DIFFERENT” — Caroline Foster-Kenny, CEO EMEA at IPG Mediabrands
E XE CU T I VE PRO FI LE
Caroline Foster-Kenny Caroline Foster Kenny has over 25 years of global client leadership and business experience across multiple verticals, spanning all marketing communications. Prior to joining IPG Mediabrands in January 2017, Caroline was Global Chief Client Officer at MEC, part of WPP’s GroupM, where she built and grew global client relationships, overseeing MEC’s top 30 global clients and relationships. Caroline was part of the WPP group for nearly 15 years and was previously responsible for the Global Solutions Team, formed of 12 international hubs. In 1996 she launched and established the first media agency in Asia, CIA Hong Kong. Caroline was awarded China’s most entrepreneurial female leader by China’s largest circulating female magazine in 2001.
e uro pe .busi ne ssc hief. com
31
LEADERSHIP
“ WE CAN’T REALLY THINK ABOUT BEING ‘JUST’ A MEDIA BUSINESS ANYMORE” — Caroline Foster-Kenny, CEO EMEA at IPG Mediabrands
should always be to work backwards from the desired results. Then implement the right data planning processes and tools to achieve that outcome. To some, that may mean integrated client team setups which combine people and skill sets from multiple business units, while to others it might be in-housing with their team part of the time. Tailoring the approach to suit each client means you simply cannot operate businesses within a network in a siloed way anymore.
32 How have you used technology to improve your employees’ workload and experiences? Shared infrastructure, such as intranets and collaboration tools like Skype or Google Docs, are key to agility. It’s thanks to cloud-based technologies that we’re able to bring teams closer and combine the right talent from multiple departments, and indeed regions, to meet the specific requirements of projects. A data-led approach increasingly allows for the automation of certain processes, from the activation of campaigns through to the reporting. JANUARY 2020
CLICK TO WATCH : ‘WELCOME TO IPG MEDIABRANDS’ 33 This will increasingly free up teams
image, which we’ve all been guilty of
to focus on high value – and more
in the past). This levels the playing field
strategic – services for clients, such
and allows us to find a more diverse
as consultancy.
range of candidates to take our business in new directions.
How has technology assisted
Keeping the best talent means being
you in finding and retaining talent?
sensitive to the individual needs of your
Technology has a role to play in both
staff. Remote working (and the tech that
finding and retaining talent; it’s a key
enables it) changes the game for those
consideration in this sector. At the
who have to pick up their children, care
recruitment stage it has made talent
for relatives, or just find it easier to focus
pools more accessible and we’re able
away from the buzz of the office. It’s
to employ objective tools such as
a more progressive approach and
psychometric testing to find the right
we’re proud to have embraced it so
people (rather than hiring in our own
wholeheartedly at Mediabrands. e uro pe .busi ne ssc hief. com
LEADERSHIP
With the breakneck speed with which technology is evolving, what challenges have you faced and how have you overcome them? Media businesses must be able to use their clients’ data in intelligent ways. IPG made its biggest-ever acquisition in the shape of data business Acxiom in late 2018. It was a huge deal, but we knew we had to do it to stay relevant and compete in a market where data has, and will continue to have, the greatest impact 34
on our clients’ businesses. What’s equally significant in the postGDPR world is being able to use that data responsibly. Finding the right balance will be an ongoing challenge for the industry. We’ve taken the decision to remain data agnostic, as we feel strongly that this is the only way to ensure brand safety for our clients. What has been your change management strategy when instilling digital culture? Successful change management relies on having a vision. Getting everyone to buy in to a change JANUARY 2020
ABO U T U S IPG Mediabrands is the global media and data arm of Interpublic Group (NYSE: IPG). Today, the network manages $39bn in marketing investment on behalf of its clients, employing over 10,000 marketing communication specialists in more than 130 countries. Full-service and global agencies within the IPG Mediabrands network include UM and Initiative. Additional leading brands and specialist business units include BPN, Cadreon, Healix, Identity, IPG Media Lab, MAGNA, Orion Holdings, Rapport and Reprise. For more information, please visit www.ipgmediabrands.com
e uro pe .busi ne ssc hief. com
35
LEADERSHIP
36
“ TECHNOLOGY HAS A ROLE TO PLAY IN BOTH FINDING AND RETAINING TALENT” — Caroline Foster-Kenny, CEO EMEA at IPG Mediabrands
mindset is reliant on setting a strategy to which the whole leadership aligns. I was able to bring in some new blood to the senior leadership team who wanted to do things differently when I joined IPG Mediabrands. For me, it has been as simple as making the right hires and breaking down the silos to ensure that best practice and new opportunities are shared between teams. Because we now naturally operate in this way, we’re able to thrive.
JANUARY 2020
free teams up to focus on strategy and that’s an exciting prospect. Yes, we’ll be going up against competitors operating in this space. However, while they may understand data, they’re still playing catch-up in the media world. How do you see the way in which you operate evolving? We can’t really think about being ‘just’ a media business anymore, because that’s not what clients need. We will still be supporting clients’ marketing teams to help them overcome their challenges, but those now go far beyond media and branding. Our role will be to help How do you believe the acceleration
them make the most of the data they
of new technologies will shape the
own to drive transformation across
marketing industry in the next three
their businesses. The Mad Men vs.
to five years?
Math Men debate has been settled
Again, this comes back to data. Many
decisively and, thanks to solutions like
brands have masses of first-party data,
Axciom, media agencies are now very
but they don’t necessarily know how to
much at the top table.
make the best use of it. Agencies will need to double up as data consultants and make their clients’ most significant asset work harder. Technology advances over the next five years, notably in the field of automation, will e uro pe .busi ne ssc hief. com
37
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TECHNOLOGY
FUTURE OF OPERATIONAL RISK MANAGEMENT
40
WHY BUSINESSES NEED TO EMBRACE NEW TECH ROBERT RUTHERFORD, CEO OF IT CONSULTANCY QUOSTAR, DISCUSSES THE BENEFITS OF A TECHNOLOGICAL APPROACH TO RISK MANAGEMENT WRITTEN BY
JANUARY 2020
ROBERT RUTHERFORD
41
e uro pe .busi ne ssc hief. com
TECHNOLOGY
T
he impact of technology on the business world is pervasive and constantly evolving, which has meant that companies must
take action in order to stay both competitive and secure. However, with so many complex products and solutions on offer, it can be difficult for businesses to know where to begin. For some companies, it may be tempting to prioritise client-facing technologies that promise immediate and measurable commercial benefits, but businesses also need to think about long-term transformations in key areas, such as
42
operational risk management (ORM). The impact of poor risk management can be devastating for firms not only financially, but also reputationally, yet some businesses seem willing to take chances in this area. Failing to update ORM processes and systems will leave these businesses vulnerable to increasingly sophisticated cyber threats, data breaches and fraud. Investing in new technology for ORM is therefore more than just common sense – it’s essential.
AUTOMATED DETECTIVES: ANTICIPATING RISKS Identifying areas of vulnerability from vast swathes of data is definitely not a one-man job. A report by McKinsey notes that around 50%
JANUARY 2020
43
“ ORGANISATIONS CAN ALREADY USE REAL-TIME RISK DATA TO ADVANCE DECISION-MAKING BY ESTABLISHING A FRAMEWORK THAT USES AUTOMATED PROCESSES” Robert Rutherford, CEO of IT consultancy, QuoStar
e uro pe .busi ne ssc hief. com
TECHNOLOGY
of financial services staff are currently dedicated to risk-related work, while just 15% are focused on analytics. Although, by 2025, it anticipates these figures will be closer to 25% and 40%, respectively. The integration of AI and data analytics systems in ORM will be responsible for this reversal. In today’s world, data rules the roost, sparking a wave of advanced analytics tools that will become more valuable as
“ THE IMPACT OF POOR RISK MANAGEMENT CAN BE DEVASTATING FOR FIRMS” Robert Rutherford, CEO of IT consultancy, QuoStar
more data is shared. Predictive analytics techniques, machine learning, 44
and artificial intelligence can all help to efficiently build large and complex data sets. Working at a faster pace than any human, these solutions can be used to identify discrepancies long before they cause any serious problems. While AI’s capacity for a rational, proactive response is still in the very early stages of development, organisations can already use real-time risk data to advance decision-making by establishing a framework that uses automated processes. For example, banks can now invest in robotic process automation (RPA) bots that will continuously scan their internal environment and collect data from predetermined JANUARY 2020
CLICK TO WATCH : ‘LEGAL IGNITE – ULTRA-SECURE LEGAL CLOUD PLATFORM | QUOSTAR’ 45 sources. As a result of developments
a proactive working relationship with
like these, time-consuming and costly
these solutions.
manual auditing methods will eventually become a thing of the past.
While defending against risks like cyber-attacks is vitally important, many at board and executive level are still
RISK STRATEGY IS A TEAM GAME
unsure how to tackle this issue. This is
Breakthroughs in data analytics also
alarming considering that 69% of
mean that machines can now process
financial services CEOs report they
data faster, more efficiently and without
are concerned about cyberthreats,
any bias. As such, it’s important for risk
according to a 2016 survey by PwC.
managers to see this technology as
Those responsible for risk manage-
a tool to be exploited and leveraged,
ment strategies can often find that there
rather than as a threat. To this end, all
is a knowledge gap between them
areas of the business need to under-
and the board-level decision makers,
stand its capabilities in order to build
as executives tend to rely on external e uro pe .busi ne ssc hief. com
TECHNOLOGY
consultants for answers. However, it’s the board that will ultimately be held accountable for any failings, so effective communication between risk managers and decision-makers is essential. Business leaders should therefore focus on creating a culture that not only prioritises risk management, but also one that encourages employees at all levels to engage with the systems they use. This top-down approach is the only way to ensure that everyone is properly prepared for the inevitable 46
shift in ORM’s technological architecture and able to mitigate and manage the operational risks of the future. Some businesses will struggle with what can potentially be a significant change to the way they operate, so shouldn’t be afraid to seek expert help on how to manage this transition. Failure to address risk would be a serious error, but mitigating risks in the wrong way can be equally as damaging.
CAUSE FOR CONCERN? Future proofing with technology like data analytics and AI shouldn’t make employees worry about job security. A company using new technology to JANUARY 2020
manage risk will see a reduction in operating and auditing costs, an optimisation of its insurance coverage, as well as an increase in staff satisfaction. By introducing tools that are capable of automating manual processes, businesses will find that employees have more time to optimise their output and reconsider their relationship to ORM. Without a doubt, the switch from human to algorithm-based risk assessments will present new challenges, some of which may be difficult to anticipate. This is simply the nature of change. What we do know is that developing a robust ORM strategy using new technology leads to more
“ DEVELOPING A ROBUST ORM STRATEGY USING NEW TECHNOLOGY LEADS TO MORE PROACTIVE AND INFORMED DECISIONS”
proactive and informed decisions, giving businesses the competitive edge necessary to grow in today’s marketplace. The field may be complex, however, there isn’t a better time to take ORM seriously and invest in the future.
Robert Rutherford, CEO of IT consultancy, QuoStar
e uro pe .busi ne ssc hief. com
47
PEOPLE
48
ENHANCING ITS HUMAN WORKFORCE WITH ROBOTICS AND RPA Following a visit to DHL’s innovation center in Troisdorf, Germany, Business Chief takes a look at how DHL is using robotics to enhance its workforce WRITTEN BY
JANUARY 2020
GEORGIA WIL SON
49
e uro pe .busi ne ssc hief. com
PEOPLE
W
hen it comes to DHL’s logistics operations, Oscar de Bok, CEO of DHL Supply Chain, highlights the
need for flexible solutions as supply chains become increasingly complex. De Bok says
that it is imperative that a large global company such as DHL has a strategy that utilises digitalisation and collaborative robotics to enhance value and ensure its workforce is unified and connected. “The future is exciting. The future is about innovation and making sure we continuously improve,” says de Bok. 50
DHL has recently come to the end of its 2020 strategy and is now driving towards 2025, focusing on ‘delivering excellence in a digital world’. Between now and 2025, the company plans to invest US$2.2bn into digitalisation and robotics.
ROBOTICS AND RPA INNOVATIONS AT DHL “Digital culture is something we constantly enforce within DHL Supply Chain,” says Markus Voss, CIO and COO of DHL Supply Chain. He emphasises that the company has made great efforts to ensure its employees grow alongside its innovations, fostering a culture of working collaboratively with robotics and robotic process automation (RPA) as opposed to being replaced by it. “To date, JANUARY 2020
1969
Year founded
HQ
Bonn Germany
360,000+ Number of employees
51
I have not seen a single site where we have introduced technology and had job losses. In fact, it is quite the contrary, workers are usually more satisfied and we attract more people,” says Voss.
CLEANING ROBOTS – NEO “Don’t start with the most complicated,” says Markus Kückelhaus, VP of Innovation and Trend Research at DHL. “Start with something easy. Cleaning robots are not the most complex solution, but a good one that we can roll e uro pe .busi ne ssc hief. com
PEOPLE
out today. Statistics show that the
‘FOLLOW ME’ ROBOTS
most used robotic solution is cleaning
“A simple pluck and play solution,”
robots for private homes, so why don’t
notes Kückelhaus. This robotic solu-
we industrialise it?”
tion, designed by DHL’s partner
DHL has currently deployed its Neo cleaning robots — developed by
ley design, following an associate to
Avidbots - to multiple standard ware-
help transport items across long dis-
houses around the world where the
tances. “Once full, you can simply
environment is right for them.
press a button and it will automati-
“Typically, in a warehouse a person
52
Effidence, automates the simple trol-
cally go to the unloading area,
is driving through to clean it overnight
detecting any obstacles on its way,
and it is a tedious job. We see this as
while another one is sent to replace
something a person doesn’t need
it,” explains Kückelhaus. However,
to do, we can use cleaning robots
Kückelhaus does note that the disad-
instead,” says Kückelhaus.
vantage of these robots is that they
JANUARY 2020
CLICK TO WATCH : ‘DHL SUPPLY CHAIN ROBOTIC PROCESS AUTOMATION RPA’ 53
“ THE FUTURE IS EXCITING, THE FUTURE IS ABOUT INNOVATION AND MAKING SURE WE CONTINUOUSLY IMPROVE” — Oscar de Bok CEO, DHL Supply Chain
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PEOPLE
cannot integrate with a company’s warehouse management system.
AISLE PICKING ROBOTS – LOCUS Similar to the ‘follow me’ robot, the aisle picking robot, developed by Locus Robotics, helps associates to pick items. However, this one differs from the ‘follow me’ robot due to its ability to integrate with warehouse management systems. This robot moves independently around the warehouse to an aisle where items need to be picked and waits for an associate. Once the item has been 54
picked and scanned, it takes off by itself again to cover the long distances instead of the associate. “Where we have deployed these robots we have seen an increase in efficiency of 200%,” says Kückelhaus.
ROBOTIC ARMS – SAWYER Designed as a collaborative tool to reduce strainful and repetitive tasks, Sawyer is a pluck and play robotic arm that doesn’t need to be caged thanks to its pressure sensors which detect when someone comes close to it. “This is a safe robot certified to work jointly with people,” says Kückelhaus. In addition, it is on wheels so it can be easily JANUARY 2020
“ WE HAVE TAKEN A LOT OF EFFORT TO TEACH AND DEVELOP PEOPLE ALONGSIDE OUR INNOVATIONS” — Markus Voss CIO & COO, DHL Supply Chain
moved to wherever it is needed. Currently, 19 of DHL’s sites in the UK are using co-packing.
THE BENEFITS AND CHALLENGES OF ROBOTICS AND RPA While DHL sees many benefits from robotics and RPA, such as standardisation of its processes, increased productivity, increased efficiency and better use of employee talent by reducing time spent on repetitive tasks, it doesn’t shy away from the fact that innovation comes with challenges too. When it comes to robotics, particularly picking robots, Kückelhaus explains that item complexity and speed is still a negative factor for robots that can pick items. When conducting tests, the robots could only pick limited shapes and sizes, in addition to picking 73% less per hour than human associates. “Technology combined with people is the best combination,” he notes. Other challenges include change management. “We have taken a lot of effort to teach and develop people alongside our innovations,” says Voss. “It’s all about talking. We have many forums where there is an open, constructive and positive dialogue around e uro pe .busi ne ssc hief. com
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PEOPLE
“ TECHNOLOGY COMBINED WITH PEOPLE IS THE BEST COMBINATION” — Markus Kückelhaus VP Innovation & Trend Research DHL Supply Chain
56
the topic of technology. In addition, we are doing many things in terms of educating people, our certified programme drives the understanding of the necessity of innovation and the opportunities that it brings. Finally, our startup lab is a great vehicle for getting engagement from our workforce. Through the lab, employees can pitch ideas to the board to be funded and developed in a safe environment to drive it to the next phase,” he adds. Low labour costs in developing markets is another challenge that Voss JANUARY 2020
highlights. “If you have developing markets with relatively low labour costs, then introducing highly sophisticated robotics is going to come with a long payback. We have had these challenges in Latin America and parts of Asia where high impact robotic solutions are not yet ready to be rolled out. Sometimes, we still have to deploy these solutions due to scarcity of labour being so heavy that we have to implement it regardless of a longer payback.” However, Voss does note that, with the cost of robotics reducing with every new generation, regional deployment will soon no longer be a challenge. Finally, Voss highlights the importance of integration. “Although this is not a problem, it has to be acknowledged that just putting in a robot is not going to be the optimal fix for a particular problem,” he explains that the connection between robotics and a company’s warehouse management system needs to be fully integrated, something which he is currently putting a lot of work into to have an adaptable and standardised interface.
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S U S TA I N A B I L I T Y
58
SAVING THE ENVIRONMENT ONE ROBOT DELIVERY AT A TIME Henry Harris-Burland, VP Marketing, Starship Technologies, explores how last mile deliveries are greener than ever, and why customers should not feel guilty for ordering deliveries as opposed to driving to stores WRITTEN BY
HENRY HARRIS-BURLAND
JANUARY 2020
59
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S U S TA I N A B I L I T Y
L
ast mile delivery is one of the most costly segments of the supply chain. McKinsey estimates that the final leg of a delivery comprises up to 50% of
a product’s total transportation cost. However, the real and lasting impact that last mile delivery can have is much closer to home, quite literally. A successful first-time final mile home delivery creates approximately 181g of CO2 per km per item, way above the EU
target set in 2017 for vans not to emit more 60
than 175mg per km. In recent years, the only real alternatives to carbon-free bicycle deliveries have been cars, vans and motorbikes; all serial pollutants of CO2 into the atmosphere and all the more costly too. Consider the emissions involved in delivering take-away food, for example. Customers consistently demand short waiting times, with more than a quarter of consumers being willing to pay more for quicker delivery. This demand means that food vendors are deploying bigger fleets of delivery drivers to complete return car journeys to individual homes. They are forced to expand their fleet because it is difficult to integrate multiple deliveries into one journey, as vendors often
JANUARY 2020
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S U S TA I N A B I L I T Y
“ Electrically-powered autonomous delivery robots are on the rise” — Henry Harris-Burland, VP Marketing, Starship Technologies
have large catchment areas to maximise potential orders and, obviously, food gets colder the longer the journey. In cases where deliveries can be effectively integrated, e.g. a postal service, there is a high probability that numerous deliveries won’t be completed, as some recipients may be unavailable at the time of attempted delivery. In turn, this leads to more car journeys to the depot where undelivered packages are kept, multiplying the carbon emissions emitted into the atmosphere even further.
62
It is also important to consider the amount of unnecessary car journeys that the average consumer will take just to buy one or two items. Almost everyone has driven to the nearby shop to buy some milk instead of walking,
JANUARY 2020
CLICK TO WATCH : ‘STARSHIP DELIVERY ROBOTS IN MILTON KEYNES’ 63 especially in adverse weather condi-
consumerism goes mainstream”, have
tions. However the issue is that modern
suggested that autonomous robot deliver
cars emit twice as much carbon in the
is both an economical and sustainable
first five minutes of a journey and more
alternative, which has the power to add
than half of UK car journeys are less
convenience to customers who want
than two miles.
their everyday items delivered without
Given that a 25km round-trip by car emits 5,188g of CO2, or the equivalent
having to drive to the store, whilst decreasing their own carbon footprints.
of 16 re-delivery attempts by van, the last mile delivery industry is an unsustainable
THE SIDEWALK SOLUTION
form of delivery for the future.
The UK government has realised the
Several high-profile commentators
environmental crisis that we’re facing.
such as Pam Danziger of market
Its Climate Change Emergency
research firm Canvas, who predicted that
declaration in May 2019 has prompted
2019 was to be the “year that responsible
demands for more rigorous energy e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
targets, one of which is to achieve net-zero greenhouse gas emissions by 2050. The elimination of unnecessary fossil fuel consumption in food delivery could be a key way to achieve this target. In this age of technological innovation and advancements in robotic capabilities, electrically-powered autonomous delivery robots are on the rise. They
“ The UK government has realised the environmental crisis 64 that we’re facing”
are already providing a carbon-free alternative for deliveries in numerous cities across the globe and helping to dramatically cut carbon emissions. When they know they’re contributing towards the sustainable economy, customers should not feel lazy for
— Henry Harris-Burland, VP Marketing, Starship Technologies
ordering a delivery instead of driving to the shops, they should feel good
E X ECU T I VE P RO FI LE
Henry Harris-Burland Henry Harris-Burland leads marketing and communications at Starship Technologies and believes that autonomous delivery robots will make lives easier for millions of people across the globe. Henry has previously worked in the communications team at Rolls-Royce launching new innovative products in multiple regions. He is also renowned as a subject matter expert to UK government consultations at City Hall and Westminster, advising on autonomous driving, drones and delivery robots.
JANUARY 2020
about it! Driving a two-tonne car is
delivery robots have been in the fight
an incredibly inefficient method just
against climate change. Countries
to pick up a bag of groceries. On
across the globe are eager to meet
the contrary, incurring a small fee to
ambitious targets when it comes to
have your items delivered by a small
curbing CO2 emissions, and going
environmentally-friendly robot in as
into the 2020s we can expect more
little as 15 minutes is a small price to
and more industries take the initiative
pay so that our planet can
and adopt autonomous delivery to
be sustained for future
help in this effort.
generations. People
As the world of delivery continues
should feel comfortable in
to become more innovative and
the knowledge that their items
flexible, it will save thousands and
will get from A to B in one piece,
even millions of CO2 tonnes in the
too. For example, Starship
years to come. The 2020s will be an
Technologies’ robots use
exciting decade as we see more and
machine learning, sensor fusion
more consumers utilise environmen-
and computer vision to navigate their way around sidewalks all over the world. They are fitted
tally-friendly solutions like autonomous robots — the future could not be greener!
with radars, cameras and ultrasonic sensors to ensure that items are kept safe until they are unlocked by the customer, which is managed through an app interface. Over the next few years, we’ll see just how effective e uro pe .busi ne ssc hief. com
65
CITY FOCUS | PRAGUE
City Focus
PRAG
66
JANUARY 2020
GUE Business Chief takes a closer look at the city with one of the finest transportation systems and emerging business hubs in the world: Prague WRITTEN BY
SHANNON LEWIS
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67
CITY FOCUS | PRAGUE
T
he capital city of the Czech Republic, Prague, is the largest city in Czechia.
A vibrant city of almost 1.3 million
inhabitants, it is also the oldest city in the country. With a surface area of 298 kilome-
tres, it has a population density of 4,600 people per square kilometre, as reported by the European Commission. Prague has a strong cultural heritage. It is home to Prague Castle, the largest ancient castle in the world according to the Guinness Book of World Records. It is also one of 39 UNESCO Creative 68
Cities of Literature, a title held since 2014. Prague’s economy has been strong since the Czech Republic joined the European Union (EU) in 2004. The most expensive street in Central Europe is in Prague, and the city makes up 25% of the entire country’s Gross Domestic Product (GDP), according to World Population Review. The Eurostat Regional Yearbook 2018 and 2019 designated Prague as one of the most economically developed regions in the EU, with great potential for continued growth. In 2017, Prague had a GDP of €48.8mn. Recently, data from Eurostat placed Prague as the seventh richest region in the EU, with the city’s GDP per capita at 187% the EU average. This prosperity extends to the JANUARY 2020
69
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CITY FOCUS | PRAGUE
“ Hyatt Hotels Corporation, Hard Rock Hotels, and Fairmont Hotels & Resorts have all announced plans to build their first properties in Prague in the next few years”
70
Czech Republic overall. For the first
purchasing power of Czech citizens
time in history, the country’s GDP
has also grown two and a half times
per capita overtook Spain’s. Its overall
in the same time period. Prague itself
GDP is up 700% since the 1990s,
has an extremely high employment
reports Radio Prague International.
rate. With an unemployment rate
According to Helena Horská, Chief
of only 1.3%, the lowest reported
Economist at Raiffeisenbank, despite
rate across all EU regions in 2018.
the cost of living and inflation, the
JANUARY 2020
CLICK TO WATCH : ‘DISCOVER PRAGUE’ 71
IN INDUSTRY
sector has a long history within the
Prague’s economy is relatively diverse.
wider country. In Austrian-Hungarian
Due to operation costs being lower in
time, almost 70% of production was
Prague than in other EU cities, several
concentrated on Czech territory.
international companies have based
Currently, 40% of all working citizens
their European headquarters in the city.
in the Czech Republic, that is 1.4
According to Prague.com, one fifth
million employees, work within the
of all investments made in the Czech
industrial sector.
Republic occur in Prague. Industrial
Where the Czech Republic is already
production is one of Prague’s major
home to a historic influx of develop-
economic pillars. Primarily, this is cen-
ment, Prague is a hub of research and
tred around aircraft and diesel engines,
development (R&D). One fourth of all
electronics, chemicals, food, printing,
organisations undergoing R&D are
refined oil products, and cars. This
based in Prague. The city accounted e uro pe .busi ne ssc hief. com
CITY FOCUS | PRAGUE
72
for 34.5% of the Czech Republic’s
and places 35th on QS rankings for
intramural R&D spending in 2016.
the Best Student Cities worldwide.
Prague spends nearly three times
In the last decade, particularly,
the national average per inhabitant
Prague’s private sector has grown
on R&D, according to Eurostat. Within
phenomenally. The service industry
the private sector, the city accounts
in Prague is highly developed, with
for 65% of all personal performing
75% of all employed people in the
R&D shares. 683,000 people in
city working within it. While busi-
Prague work at high-tech compa-
ness services have grown, including
nies and almost 60% of inhabitants
finances, IT, consulting and adver-
between the ages of 30 and 34 have
tising, and real estate, tourism is
obtained post-secondary education.
at the heart of Prague’s expanding
Prague is home to the biggest public
economy. Between hotels, restau-
university of economics in the country
rants, tours, travel agencies, and the
JANUARY 2020
1/5 influx of actual tourists, the tourism sector contributes almost 60% to
Czech Rep investment made in Prague
Prague’s total income. According to Euromonitor International, Prague is the 22nd most visited city in the world, with over 9.2 million visitors in 2019. Several international hotel chains are looking towards Prague for potential business. Currently, Hyatt Hotels Corporation, Hard Rock Hotels, and Fairmont Hotels & Resorts have all announced plans to build their first properties in Prague in the next few years. The Hyatt 175-room
40%
Citizens work in the industrial sector Nearest Airport
17km
Northwest edge of the city e uro pe .busi ne ssc hief. com
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CITY FOCUS | PRAGUE
“ Prague’s economy has been strong since the Czech Republic joined the European Union (EU) in 2004” hotel is looking to open in 2022, while Hard Rock plans on debuting its 523 rooms and suites in 2023. The Fairmont project will be the first from the resort chain in the Czech Republic, with a soft opening in 2020 followed 74
by a planned 2022 refurbishment.
A CITY IN TRANSIT Prague’s public transport system is considered one of the best in Europe. Two-thirds of the city’s population relies on it, from trams and buses to the metro. While this system is entrenched in the city’s infrastructure, it has been undergoing a digital transformation to bring it into the modern age. Just last month, it was announced that the city’s public transit passes can now be stored on mobile phones. The PID Lítačka application, which was launched in 2018, will now allow city-goers to virtually store travel passes. The app has JANUARY 2020
experienced immense popularity since its launch: it is used regularly by over 139,000 people and has been downloaded by 630,000 passengers. The city is also improving its transport infrastructure. Recently, Prague signed a sister pact with Taipei, set to unify the two cities in January of next year. Once signed, the pact will allow Prague to send students to Taipei to study, among other topics, Taiwan’s metro development. It also launched a public transit shelter prototype. Its design came as a result of a competition promoted last year by the Prague Institute of Planning and Development. The prototype’s design includes screens on three sides to protect people from the elements, as well as an information panel that updates passengers of tram and bus arrival, USB ports, Wi-Fi, and a speaker for the hearing impaired. The city has been on a mission to unify urban furniture since 2017, when it began looking for alternate designs for rubbish bins, cycle, racks, and benches.
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T O P 10
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JANUARY 2020
_ _ _ l a t i g Di ptors u r s Di Business Chief Europe takes a look at the main industries poised to become digital disruptors, according to Forbes, and finds the top 10 European startups and companies WRITTEN BY
SHANNON LEWIS
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T O P 10
50
NO. EMPLOYEES
$3.5mn REVENUE IN US DOLLARS
78
10
ICAROS
HQ: MUNICH, GERMANY
Founded in Munich, Germany in 2015, ICAROS combines fitness training with virtual reality (VR) to create a product that blends tech and exercise. Its VR systems provide a workout simulation for users to train their body from the comfort of their homes and gamify their gym-going experience. The machines include simulations for flying and deep-sea diving. Its software can be found in 200 gyms and entertainment centres across 40 countries. Forbes says of ICAROS that it “use[s] virtual reality to make fitness addictive”. It makes EU-Startups’ 2019 list of 10 European startups to look out for, having raised USD$3.5mn in funding.
JANUARY 2020
09
OneVisage HQ: LAUSANNE, SWITZERLAND
A cybersecurity company, OneVisage develops facial recognition software with the goal of creating safe security authentication platforms. Created by 3D computer vision experts, banking software specialists, and executive managers in 2013, its software development kits (SDK) are designed with complete data privacy in mind, following GDPR and PSD2 regulations. Its facial recognition technology is designed to replace passwords and pin numbers, a safer authentication alternative that can be installed on any consumer mobile phone. According to Silicon Canal, it is a top 10 European facial recognition startup to watch out for, with almost $400,000 in funding.
8
NO. EMPLOYEES
79
$1mn REVENUE IN US DOLLARS
e uro pe .busi ne ssc hief. com
From Inspiration
to Innovation
T O P 10
08
Banuba
HQ: MINSK, BELARUS
Originally an artificial intelligence lab focused on combining virtual and physical reality, Banuba currently provides augmented reality (AR) experiences through mobile camera capabilities, from face filters to green screen capabilities. Founded in 2016, Banuba operates out of Minsk, Belarus. Cutting-edge, its technology works on 98% of mobile phones, is functional in low lighting and awkward angles, and able to identify up to three faces. According to the company website, Banuba has 31 patent applications to its name, with one of the avenues under exploration being eye tracking. According to Silicon Canal, it has secured $12mn in funding. 81
100
NO. EMPLOYEES
$500k REVENUE IN US DOLLARS
e uro pe .busi ne ssc hief. com
T O P 10
117
NO. EMPLOYEES
$1mn 82
REVENUE IN US DOLLARS
07
Oxford VR
HQ: OXFORD, UK
Founded in Oxford, UK, Oxford VR provides immersive virtual reality therapy as part of a technology-based psychological treatment for phobias, and depression and anxiety disorders. It allows patients to overcome psychological difficulties while in a safe setting, providing automated treatment and virtual coaches. A spinout of the University of Oxford, Oxford VR, was founded in 2016. It makes EU-Startup’s “Ten European VR Startups to look out for in 2019”, with $4.1mn raised in funding. Its clinical acrophobia (fear of heights) program was a finalist in the 2019 VR Awards in the VR Healthcare of the Year category.
JANUARY 2020
35+
NO. EMPLOYEES
$22K REVENUE IN US DOLLARS
06
83
loqr
HQ: BRAGA, PORTUGAL
With headquarters in Braga, Portugal, loqr was first founded in 2015. B2B-oriented, the loqr Unified Identity Management Platform is integrates and centralises customer-focused digital identity solutions, from verification to engagement to identity prover. It frames itself as a “onestop shop� for all regulation-approved identity needs. It was awarded Best Digital Transformation Idea at the 2018 Portugal Digital Awards. Silicon Canals identifies loqr as one of the top 10 European facial recognition startups to look out for, with $1.3mn secured for funding. According to the company website, uses for the technology range from banking and financial services to online gambling.
e uro pe .busi ne ssc hief. com
Building an ecosystem? Connect the dots. “Your journey to cloud must navigate pitfalls and opportunities that are unique to your business. We support you in imagining and delivering your cloud journey and making it run�. Eric Meistermann, Deloitte Partner in charge of AXA Group
T O P 10
05
Immersive VR Education HQ: WATERFORD, IRELAND
Founded in 2014, Immersive VR Education creates virtual reality platforms that can be used for both educational and corporate training purposes, with the goal of providing an informative, immersive experience. Its virtual reality collaboration and creation tool, ENGAGE, can be used to create any virtual environment possible, from recreating an actual workspace to allowing students access to more creative educational options like recreating Hubble Space Telescope missions. Based in Waterford, Ireland, it was named best digital VR/AR product at the GESS Education Awards Dubai. It is on EU-Startups 10 European VR startups to watch out for in 2019, with almost $1.3mn raised in funding.
85
27
NO. EMPLOYEES
$3.4mn REVENUE IN DOLLARS
e uro pe .busi ne ssc hief. com
T O P 10
04
Giraffe360
HQ: LONDON, UK
With its initial prototype created in 2016, Giraffe360 uses 3D VR technology to allow people to give virtual real estate tours. Originally founded in Latvia, it moved its headquarters to London, UK earlier this year, after a successful $1.2mn funding round-up. It developed what is now the highest quality presentation technology in the world, standing at 270-megapixel resolution. Its new Model 3 camera uses automation to scan floor plans and photograph an entire two-bedroom property in under 20 minutes. With a total $1.9mn raised in funding, EU-Startups calls it one of the top 10 European VR startups to look out for in 2019.
86
22
NO. EMPLOYEES
$1mn REVENUE IN US DOLLARS
JANUARY 2020
19
NO. EMPLOYEES
$2.5mn REVENUE IN US DOLLARS
03
87
Colendi
HQ: ZUG, SWITZERLAND
Based in Zug, Switzerland Colendi is a fintech startup that uses blockchain technology to create a global financial passport for users. Through this technology, it both gives more micro-financing access to people who don’t have banking access, as well as opening the door for small businesses and individuals to begin building a credit score. Founded in 2016, Colendi seeks to empower the developing world, designed to serve the “unbanked/underbanked”. It relies on machine-learning algorithms to determine client’s credit scores. EU-Startups names Colendi one of the top 10 Swiss startups to watch out for in 2019, with $2.5mn raised in funding.
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T O P 10
02
Legal Nodes HQ: LONDON, UK
13
NO. EMPLOYEES
N/A
REVENUE IN US DOLLARS
Founded in 2018, Legal Nodes provides legal services for companies that use cryptocurrency. With a focus on Distributed Ledger Technology (DLT), it seeks to help tech startups circumvent the legal stresses of initiating a company. Based in London, UK, its company mission is to build the first decentralised law firm. Most of the company’s team has a law background, which leads to efficient tech creation; according to F65, it automates the 88
non-legal work that traditionally occupies 40% of lawyers’ time. According to EU-Startups, it is one of the top 10 European blockchain startups to watch out for.
JANUARY 2020
CLICK TO WATCH : ‘HOW TO CONDUCT A SECURITIES TOKEN OFFERING LEGALLY / FIRST LEGAL NODES PUBLIC EVENT’
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T O P 10
488
NO. EMPLOYEES
$9.8mn REVENUE IN US DOLLARS
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CLICK TO WATCH : ‘ABOUT BITCOIN MINING’
JANUARY 2020
01
The Bitfury Group HQ: AMSTERDAM, THE NETHERLANDS
Based in Amsterdam, the Netherlands, The Bitfury Group recently became one of the few blockchain companies in the world to be valued at $1bn. It is the largest full-service blockchain technology company in the world, delivering both hardware and software solutions for clients who range from businesses and governments to organisations and individuals. Founded in 2011, it provides security and infrastructure for bitcoin blockchain. Most recently, it launched an AI division. Although the segment is still in the research and development stage, Reuters reports that it should start offering AI products by early 2020.
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GROUP UK
92
Embracing change management in the supply chain WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
CHARLOTTE CLARKE
JANUARY 2020
93
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O C S G R O U P U K LT D
Steve Caddell, Group Procurement Director at OCS Group UK, discusses the importance of operating with an agile approach in the supply chain space
T
he world’s largest privately owned facilities management services company, OCS Group, is renowned for being a progres-
sive business with a strong heritage. Serving a diverse customer base spanning across a broad 94
range of industries such as aviation, healthcare, business and industry, sports, leisure and entertainment, OCS Group UK showcases its versatility to meet each customer’s specific needs. With the supply chain world in a state of transition following the introduction of new technology industry-wide, Steve Caddell, Group Procurement Director at the company, believes adopting a flexible approach is key to embracing change management. “We try to be agile and lean. Our approach to change management is based on incremental gains,” he explains. “Being agile is a state of mind and if your mindset is conservative and slow, then you can’t be agile.” Caddell recognises the importance of innovation and trialling new things. “We’ve created a culture in the procurement team at OCS Group UK where it’s okay JANUARY 2020
95
1900
Year founded
ÂŁ450mn
Revenue in the UK, Ireland and Middle East
19,800 Employees
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to try and fail fast in the pursuit of finding new ways of working,” he says. Change is an area that Caddell values. Having switched from an outsourced procurement model to one that operates in-house several years ago, he understands that supply chain performance not just cost saving, it is crucial. “The commercial approach of the outsourced provider was not consistent with the values of OCS Group and awarded very long term contracts and guaranteed unrealistic levels of spend,” says Caddell. “This JANUARY 2020
“ Being agile is a state of mind and if your mindset is conservative and slow, then you can’t be agile” — Steve Caddell, Group Procurement Director, OCS Group UK
CLICK TO WATCH : ‘THE OCS WAY’ 97
approach is not sustainable and there-
With a robust supplier relationship
fore not good business.” With over
management (SRM) strategy in place,
2,000 customers in the UK and each
Caddell recognises his company’s
using its supply chain, Caddell believes
strategy primarily revolves around
procurement is vitally important for
portfolio management instead of cat-
overall company success. “Each of our
egory management. “We organise our
customers use part of our supply chain,
procurement team around similarities
whether that’s the machines we deploy
of commodity, rather than just spend,”
on-site, uniforms given to our employ-
he explains. “For example, one of
ees or materials cleaning operatives
our portfolio managers looks after
use,” he affirms. “We have a very high
the wholesaler portfolio of suppliers,
reliance on our supply chain, which
ranging from catering consumables
is why our procurement function is
through to cleaning equipment. These
so well regarded within OCS.”
are vastly different areas of spend, e uro pe .busi ne ssc hief. com
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but share a common operating model
reliance on our supply chain, the
of delivering to our customer sites
OCS proposition is dependent on
every day. Each portfolio manager
high performance,” he explains.
has an SRM toolkit based around
Having formed a key strategic busi-
incremental improvement. We actively
ness relationship with Tabbers and
engage with our suppliers regularly
Recomony, Caddell believes in the
and have open conversations about
value of true collaboration within the
where they can help us develop.”
supply chain and feels it is vital for
Caddell has a range of high per-
success. “Tabbers produces all of
forming suppliers at his disposal,
our marketing material and we’ve
believing that success in the indus-
worked with them for a considerable
try simply wouldn’t be possible
amount of time. In my opinion, they’re
without them. “We have a heavy
very innovative and share our values 99
E XE CU T I VE PRO FI LE
Steve Caddell Steve joined OCS, Europe’s largest private-owned facilities management organisation, as Group Procurement Director in April 2017. His work involves managing the supply of goods and services worth around £165m. He is also responsible for a global Centre of Excellence sharing and the UK property estate. Immediately prior to this, he spent two years as a freelance consultant at a C-Suite level in some of the world’s leading property and construction businesses, successfully delivering career savings in excess of £150m, and is seen as a transformation expert within the industry specialising in strategy and high performance.
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101
“ T he OCS often go way beyond what is normally proposition expected. We see them as an integral part of the team,” says Caddell. is dependent “Reconomy is our waste broker and on high helps us manage over 400 local waste providers all around the UK, performance” around care, expertise and trust and
and provides industry leading exper-
tise and advice about how to reduce waste consumption and increase our level of recycling. Reconomy’s technology platform is also of great use to us and collates all of the statutory
— Steve Caddell, Group Procurement Director, OCS Group UK
documents associated with waste compliance in one place.” e uro pe .busi ne ssc hief. com
O C S G R O U P U K LT D
102
JANUARY 2020
Looking to the future, Caddell has a clear understanding of the direction
“ Procurement is a process; not a function”
he anticipates his company to take over the next few years. “We’re in the final stages of the last few remaining legacy contracts that were created as part of the outsourced arrangements,” he says. “Once we’re free of those, we will rebuild the supply chain and restructure it significantly. We want to
— Steve Caddell, Group Procurement Director, OCS Group UK
build the highest performing supply chain within our industry and be seen as a beacon of best practice. We want to reduce our vehicle emissions, which in turn, would decrease delivery costs. It’s important that we look strategically at what we have to do in the supply chain and find the most efficient way of moving products from a manufacturer to the end user. Procurement is a process, not a function and something that should be done by the business, not done to the business. I hope in the future that it can be seen as a normal part of what we do, enabled by a small, expert team, not necessarily a function that stands on its own.”
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104
Driving innovation for a sustainable business WRITTEN BY
GEORGIA WILSON PRODUCED BY
MANUEL NAVARRO
JANUARY 2020
105
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LOTTE WEDEL
Poland’s oldest chocolatier shares its innovation journey, focused on ensuring a sustainable business model
S
upply chain is a challenging role; complexity constantly grows to reflect business needs, products, developing technol-
ogy, optimisation and efficiency,” says Sławomir Kluszczyński, Chief Operating Officer (COO) at LOTTE Wedel. For a business that has a vast 106
amount of history and tradition, it is important to balance innovation with a legacy that has seen it win the hearts of chocolate lovers worldwide since 1851. “Our industry is continuously changing,” notes Kluszczyński, “in particular our consumers are becoming increasingly aware of the impact of not having a sustainable business. The industry is not waiting, it is doing everything it can to support sustainability, and so is Wedel. It is a core part of our company values, a lot of our activities are focused on our impact on the environment,” he continues. When it comes to those company values, Wedel underwent a cultural transformation this year: “We have recently undertaken a number of activities in this area: we have redefined the mission and vision of Wedel and we have redefined organisational values. We began to build employee awareness in JANUARY 2020
107
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LOTTE WEDEL
108
this area, both at the level of the entire
business include, water and energy
organisation (culture research) and at
saving solutions, zero-waste activities
the individual level. The next steps are
and reduced plastic and paper usage.
to support employees with the tools
“We have a zero-waste policy, sensors
and systems that will help us to oper-
that limit the use of both water and
ate in accordance with the the new
electricity have been implemented
organisational culture. All of this is to
throughout the business. In addition, we
develop the competencies that will pro-
use mobile solutions and applications
vide Wedel with an innovative view, and
to reduce the need for paper printing,
quick solutions that will help achieve
as well as streamlining the amount
the goals set in our long-term strategy,”
of printing machines available,” says
Kluszczyński explains.
Kluszczyński. “When it comes to plas-
Current ways in which Wedel is
tic waste, we have eliminated it from
driving sustainability throughout its
our canteens, replacing plastics with
JANUARY 2020
CLICK TO WATCH : ‘WEDEL CORPORATE VIDEO’ 109
“ We value our people at Wedel, our Wedel family’s dedication to ‘Kaizen’ is what drives our success” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel
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LOTTE WEDEL
“ Wedel is very proud to partner with big international and local networks and suppliers” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel
Wedel’s workers help in building educational farm
110
biodegradable substitutes. Where we
developing its CSR strategy, which will
still need to use it, we reuse as much as
incorporate a long-term sustainability
possible in order to reduce our impact
plan. It is expected to be announced in
on the environment.”
early 2020.
However, it is not only company
Besides that, Wedel already under-
implementations that are driving
takes many social responsible activities.
Wedel’s sustainability focus. “We work
For example, the company cooperates
with suppliers and partners in logistics,
with NGO’s, partners and institutions:
that share our environmental goals
“We are very close with Praga-Południe,
as well as educate our employees on
where our factory has been located
environmental best practices, includ-
since 1930. As a result, we are involved
ing workshops detailing correct waste
in many local activities: we support
segregation,” explains Kluszczyński.
our neighbour, The Praga Museum of
Wedel is currently in the process of
Warsaw; we participate as a strategic
JANUARY 2020
partner in Polish-German Gardens, which works to revitalise the park near our factory; and we are titular sponsor of ‘Wedel’s Run’, which has run for 15 years,” Kluszczyński says. “We appreciate long-term cooperation. An example of this type of work and partner is Stowarzyszenie Serduszko dla Dzieci (Heart for Children Association), with which we’ve already done many interesting projects,” he continues. “For example,
Bee hives on the Wedel factory rooftop
the foundation’s proteges take care of hives located on Wedel’s factory
E XE CU T I VE PRO FI LE
Sławomir Kluszczynski Sławomir is a manufacturing and supply chain professional with 20+ years of experience and focused on continuous improvement, operational excellence and effective leadership. He graduated from the Warsaw University of Technology, Mechanics of Energetics and Aviation faculty. He has also obtained an MBA degree from the Warsaw University/ University of Antwerp. He has gained his professional experience in companies such as: Master Foods, L’Oreal, GlaxoSmithKline, Avon and Cadbury Wedel, getting wide manufacturing and supply chain expertise. Currently, Sławomir holds the position of Chief Operating Officer at LOTTE Wedel
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111
rooftop while learning the basics of
Wedel, this way of thinking is ingrained
entrepreneurship and sensitising to
in the mindset of our people. We call
environmental issues. We also support
this process ‘Kaizen’ – to change for the
the construction of a city farm in Wawer
better. Wedel is in the early stages of
(Warsaw’s district), which will be a
its industry 4.0 development strategy,”
friendly educational space enabling chil-
Kluszczyński continues. In the last cou-
dren and adults to enjoy the benefits of
ple of years the company has begun to
nature as part of gardening and farming
develop and implement innovative tech-
workshops. Our employees are involved
nology to transform its operations.
in gardening and construction works,
To compete with increasing quantity
including those related to the construc-
demands of its ‘Ptasie Mleczko®’ prod-
tion of the playground.”
ucts, Wedel has developed innovative
When it comes to having a sustainable
industrial-sized technology to allow a
business for long-term growth, “innova-
faster decorative process. In addition, it
tion is needed to bring increased value
utilises sophisticated machinery to per-
to changing customer demand and
fect its packaging process to remove
industry trends,” says Kluszczyński. “At
preservatives: “We have developed a e uro pe .busi ne ssc hief. com
113
LOTTE WEDEL
“Innovation is needed to bring increased value to changing customer demand and industry trends” — Sławomir Kluszczyński Chief Operating Officer LOTTE Wedel 114
JANUARY 2020
tray with a unique foil that prolongs the freshness of the product inside,” says Kluszczyński. The company has also been utilising iTRAK, the Intelligent Track System by Rockwell – the most innovative motion solution on the market today – to standardise its product cartoning process by implementing magnetic drives. When it comes to digital transformation of its systems, Wedel is working on a scheduling tool to strengthen the company’s production line. “We are currently in the last development stage to digitally transform our scheduling system used for inventory management. With this new technology – which we have begun to use some aspects of – we will be able to optimise our processes to reduce cost and achieve a more efficient production line. To develop this system we have been utilising IBM’s sophisticated algorithms,” Kluszczyński notes. For Wedel, Artificial Intelligence (AI) and machine learning, is still conceptual, with discussions for using automation in its packaging processes underway. However, Wedel has begun gathering data to build the foundations for rolling e uro pe .busi ne ssc hief. com
115
LOTTE WEDEL
out these innovative technologies. In addition, it is utilising 3D printing for its products. “We currently use the technology for sample products and the manufacturing of spare parts for some equipment,” highlights Kluszczyński. We use advanced technologies during consumer research in order to get to know our present and future clients’ needs in the best way. By analysing the micro-expressions of the face, or the brain’s areas of activity, we are able to understand the types of emotions and 116
reactions that our products awaken. Knowledge acquired in this way has been used to redesign of Ptasie Mleczko® packages, for example,” explains Kluszczyński. Other key areas the company is focused on include factory expansions and exporting products. Currently, export makes up 10% of the company’s turnover and Wedel’s products can be found in over 60 countries. The company also looks to other directions, for example, Russia. “We are spending a lot of resources and efforts to achieve our investments,” says Kluszczyński. “Our factory expansions have included new products, JANUARY 2020
1851
Year founded
HQ
Warszawa, Poland
hybrid warehousing, IT systems and production machinery; this expansion is scheduled to be complete in 2021. In addition, we are continuing to work on exporting to Russia. Today the economic climate is much better now, both in terms of currency rate, custom duties and increased acceptance of foreign products.� When it comes to partners, Wedel’s key long-term partnership is with its owner LOTTE. For both LOTTE and Wedel this partnership is mutually beneficial in that it provides further market access and helps to develop innovative products and business operations. At the same time, cooperation between Wedel and LOTTE is based on e uro pe .busi ne ssc hief. com
117
LOTTE WEDEL
partnership. Wedel is autonomous and is locally managed: “The reason for this is that LOTTE trusts us and knows that we have the best knowledge of the Polish confectionery market and the most experience in running a legendary chocolate company. People create Wedel. This is why they continue to have the greatest impact on our organisation, our products, our communication and our relationship with the environment. The company’s long-term strategy is being 118
developed and enforced in Poland,” explains Kluszczyński. He also emphasises that “Wedel is very proud to partner with big international and local networks and suppliers. We collaborate with pride, achieving sophisticated solutions and tailor-made offers for customised products. In return we are present in a wide network and benefits from long-term sustainable business partners.” Reflecting on the company’s transformation to date, Kluszczyński believes Wedel’s biggest success is its ability to maintain its heritage products while continuing to innovate and transform in order to keep up with changing JANUARY 2020
119
industry trends. This is reflected in the
quality and the best taste. At this point,
company’s mission: “We are constantly
I would like to mention our other value:
changing to make us and our clients
‘I provide quality’. However, Wedel
happy’. Kluszczyński attributes the
wants to continue to strive towards a
company’s overall ability to achieve
more sophisticated factory that has
this to its people, explaining that “we
the capacity to harness innovative
value our people at Wedel. Our Wedel
technology. As a result we will have
family’s dedication to ‘Kaizen’ is what
the ability to keep up with customer
drives our success. Also, continuous
demand and changing trends, to fur-
improvement is inscribed in one of our
ther drive a sustainable business both
organisational values - I question the
environmentally and operationally,”
status quo.”
concludes Kluszczyński.
“Ultimately, at Wedel, we always want to have our heritage of guaranteed e uro pe .busi ne ssc hief. com
120
CORESTATE CAPITAL: OPTIMISATION AND AUTHENTIC ESG INTEGRATION WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
BEN MALTBY
JANUARY 2020
121
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C O R E S TAT E C A P I TA L G R O U P
Justus Wiedemann, Group Sustainability Officer at Corestate Capital, discusses the Environmental, Social, Governance practices that are being infused into the firm’s core functions as it delivers value through data-driven optimisation
A
s a leading independent investment manager for real estate in Europe, Corestate Capital
has experienced substantial growth in recent years. Since 2016, Corestate 122
has brought the total value of its assets under management (AUM) to €26bn, translating to a compound annual growth rate of 110%. This growth is matched by the scale of its Environmental, Social and Governance (ESG) ambitions. Intending to integrate its ESG framework into its operations, Corestate appointed Justus Wiedemann to lead the charge as Group Sustainability Officer. The reasons for Corestate’s ESG ambitions are clear. “Investors are increasingly keen to invest in progressive opportunities, particularly as the European Union (EU Green Deal) and United Nations (PRI) have laid out ambitious but vital frameworks for the development
JANUARY 2020
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C O R E S TAT E C A P I TA L G R O U P
“ Value creation and trust are getting more and more important for our clients and the wider stakeholder group of employees, politicians and society as a whole” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital 124
of sustainable societies, supply chains and economies,” says Wiedemann. ”From a market potential point of view, there is an apparent demand for authentic sustainable products.” Moreover, ESG criteria are becoming increasingly important for employees. Deloitte’s 2019 Global Millennial Survey found that 74% of those born between 1983 and 1994 would leave their company in the next five years if they hadn’t committed to environmental and social stewardship practices; an attitude reflected by wider consumer attitudes to sustainability in business. Wiedemann began his time at Corestate in the post-merger integration department. “When we started with ESG, it was part of our wider institutionalisation plan, which also includes reporting standards, compliance and governance on a group level,” he says. Until then, the company had strategically acquired along the value chain. “Corestate started as an asset and investment management firm, and has acquired property management firms such as CRM Students, which is a leading provider of student housing in the UK, a mezzanine financing firm, HFS which is the market leader in Germany,
JANUARY 2020
CLICK TO WATCH : ‘CORESTATE CAPITAL MARKETS DAY 2019 – Q AND A SESSION CLIENTS’ 125 Austria and Switzerland, and a large
how we have optimised real estate
institutional asset manager, Hannover
assets along with reductions in utility
Leasing,” he explains. As a result,
consumption and carbon emissions.
Corestate now offers the whole invest-
In the end, we can manage on the
ment management chain for real estate,
ground each and every part of the
including financing, structuring, asset
investment value chain according to
management and property management.
our ESG strategy.”
“Out of our holistic view comes
As data forms the backbone of the
the strength of our ESG integration
company’s strategy, Wiedemann’s
approach,” says Wiedemann. “We are
background in project management
operatively capable of reflecting what
and data science is proving instru-
the EU wants in their Green Deal and
mental in the rollout of ESG principles
Action Plan on Financing Sustainable
across the company’s operations.
Growth, conforming ESG with sustain-
Particular emphasis is placed on
able investments to transparently show
buildings management. “Looking at w w w.c so ma ga z i n e. com
C O R E S TAT E C A P I TA L G R O U P
126 overall carbon dioxide emissions in the
By acting on the insights that data
EU, the highest polluting factor is real
provides, Corestate is able to amortise
estate buildings. 36% of CO2 emissions,
a part of the cost of building optimisa-
within the EU, come out of real estate,”
tion with funds saved through reduced
Wiedemann highlights. By comparison,
energy consumption. A key partner
manufacturing accounts for 25% of
for Corestate’s transformation is ESG
emissions. “We should all have a clear
software leader Measurabl. On this
focus on optimising buildings. We see
platform, with around 45,000 assets
enormous potential in that field because
from a global bank of asset managers,
we find so many opportunities that we
a digital twin of each of Corestate’s
gain through our data-driven approach.
property asset is created. Then
However, data is always just a vehicle
the platform is fed with utilities
that’s not an end in itself.” It does, how-
and emissions data from myriad
ever, enable operational optimisation
sources to maximise its capacity
on a scale not previously seen.
for buildings optimisation.
JANUARY 2020
It then enables Corestate to bench-
world. As these cost drivers are gen-
mark its buildings’ performance
erally a result of utility management,
against their peer group of similar
addressing them with an approach
structures. By establishing benchmark
geared towards efficiency simultane-
scores through such means, Corestate
ously creates value and minimises
circumvents the traditional limits of
the environmental impact of each
depth imposed by the labour-intensive
building. Combining Measurabl’s
nature of data collection.
data with its own utilities and energy
The result, Wiedemann says, is the
consumption information, driven by
revelation of hidden cost drivers
the proliferation of data points such
across the Corestate portfolio, ena-
as smart meters, offers Corestate a
bling cost cutting and value creation
powerful capacity to enact changes
that would have been far more chal-
that empower both its financial bot-
lenging to realise in a pre-data driven
tom line and the environment.
E XE CU T I VE PRO FI LE
Justus Wiedemann Justus Wiedemann is Group Sustainability Officer at Corestate. He is responsible for the overall ESG framework as well as the operational integration of ESG criteria at corporate, product and asset levels. Prior to joining Corestate, Justus was a consultant in a digital and banking unit and an executive consultant within the automotive supplier industry. Justus earned a BA in International Business and Finance from DHBW Stuttgart, a BA in International Accounting from the University of South Wales and an MSc in Management and Economics from Zeppelin University, where he wrote his master’s thesis on machine learning in conjunction with WHU – Otto Beisheim School of Management.
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C O R E S TAT E C A P I TA L G R O U P
129 Wiedemann adds that the increased digitalisation of energy data collection in Germany also offers an opportunity for improved vendor management. “We have started a group-wide process with major German operational cost advisory Westbridge to tender out our complete energy consumption of all of our managed assets,” he says. “We will then be left with a very consolidated vendor market, making it much easier to go ahead with smart metering at scale. If you have 33 fragmented energy vendors, you end up with 33 dif-
“ Looking at overall carbon dioxide emissions in the EU, the highest polluting factor is real estate buildings. 36% of carbon dioxide emissions, within the EU, come out of real estate. We should all have a very clear focus on optimising buildings” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital
ferent hardware components to install.” w w w.c so ma ga z i n e. com
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130
JANUARY 2020
“ Data is always just a vehicle that’s not an end in itself” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital
In a consolidated market with fewer vendors to consider, the amount of data noise is reduced significantly, offering higher quality data that elucidates multifaceted opportunities for optimisation. “Seeing what’s happening in each of our buildings on such a granular level is an immense advantage because we’re not in the dark about possible energy waste anymore,” enthuses Wiedemann. Outside Corestate’s focus on the environment, it is also fostering social change. One broader issue in this area that Wiedemann highlights is the lacking representation of women in management across Germany. Corestate is therefore committed to expanding the representation of women in top-level management, a figure which, according to Wiedemann, stands at only 14.7% in German DAX 30 w w w.c so ma ga z i n e. com
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C O R E S TAT E C A P I TA L G R O U P
“ ESG is an imminent component of investing which creates value; it’s a holistic and brighter view that is more fitting for today’s and tomorrow’s world” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital
companies. “Our goal is to attract, retain and develop talented women. As one of the first measures, we have become a sponsoring member of the Fondsfrauen association — a German initiative with over 2,000 female members — the majority of whom hold senior-level positions in the finance industry.” Fondsfrauen offers a mentoring programme which Corestate Women can leverage, providing the opportunity for training, networking and growth, and equipping female
2006
Year founded
€204.4mn Revenue in (2018) euros
730
Number of employees
employees with the tools to progress
becoming more and more important
within the organisation.
for our clients and the wider stake-
Wiedemann’s passion for these
holder group of employees and
strategies, and indeed those beyond
society as a whole,” he says. “ESG is
the scope of this profile, is glaringly
an imminent component of investing
evident. It is important, he says, for
which creates value; it’s a holistic and
businesses not only to adopt envi-
brighter view that is more fitting for
ronmentally and socially progressive
today’s and tomorrow’s world.”
initiatives but to do so authentically, as it cannot be a simple box-ticking exercise done to reflect the sociopolitical climate of the modern day. “Value creation and trust are w w w.c so ma ga z i n e. com
133
134
JANUARY 2020
SIGNIFICANT, SUSTAINABLE GROWTH WRITTEN BY
HARRY MENEAR PRODUCED BY
LEWIS VAUGHAN
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GOIKO
JOSÉ RAFAEL BARRETO IBARRA, CIO OF GOIKO, EXPLORES HOW THE GOURMET BURGER BRAND IS USING INTELLIGENTLYSELECTED, TECHNOLOGYDRIVEN CHANGE MANAGEMENT STRATEGIES TO SUPPORT RAPID AND SUSTAINABLE GROWTH
I
n the 21st century, every company is a technology company. A global digital transformation is sweeping across the
business landscape, prompting radical change 136
as companies reevaluate best practices and embrace cutting edge solutions to create value. Nevertheless, a digital transformation for digital transformation’s sake is more likely to hurt your company than help it. As many as 70% of largescale digital transformation efforts end in failure, so how can companies ensure that their move towards Industry 4.0 is a successful one? “Nothing is more dangerous than a repetitive and hectic task with little purpose. If people get stuck doing these manual things, then they’re being prevented from living up to their full potential,” explains José Rafael Barreto Ibarra, CIO of GOIKO. “Technology grants you the superpower of giving you more time to come up with ways to delight the customer. You spend less time keeping the business running and more time designing, creating and JANUARY 2020
137
2013
Year founded
â‚Ź66.2mn Revenue in euros
1,200+ Number of employees
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GOIKO
“ TECHNOLOGY MEANS YOU CAN SPEND MORE TIME COMING UP WITH NEW WAYS TO DELIGHT THE CUSTOMER”
analysing.” For Barreto and GOIKO, ensuring that technological adoption is aligned with the company’s goals and values is essential, especially as it enters a period of dramatic growth driven by those values. “Basically, since 2017, we’ve been growing at a rate of 2.5 new locations every month,” he says. “Now, we have almost 80. It’s been crazy and quite fun.” We sat down with Barreto to discuss how
José Rafael Barreto Ibarra, CIO, Goiko
GOIKO is using intelligently-selected, technology-driven change management strategies to support rapid and
138
sustainable growth. The GOIKO story starts in 2013, when Andoni Goicoechea, a doctor from Venezuela working in Hospital La Paz in Madrid, decided to deliver a gourmet burger restaurant concept in Madrid (Goiko Grill) with the financial support of his father. Its current menu is influenced heavily by both Spanish and Venezuelan cuisine, and the company is dedicated to ensuring its burgers are of the highest quality. “Our quality hasn’t decreased since the day we opened, and it never will,” claims Andoni, who serves as GOIKO’s CEO. “We’re only as good as the latest burger coming off our grill.” JANUARY 2020
CLICK TO WATCH : ‘MADE IN GOIKO’ 139 Andoni and Barreto have known
already grown from its original single-
each other since school. Their pro-
room, 30-seat restaurant in Madrid to
fessional relationship began back in
nine locations managed from a central
Venezuela, where Barreto ran a small
office with a staff of fewer than five and,
boutique hotel business. “It was 2011,
even though Andoni is a self professed
when marketers were just starting to
tech geek, the company was without
recognise the potential of Instagram.
a dedicated technology expert. “I
We wanted to use it to showcase our
remember the call,” laughs Barreto.
beach hotel in Caruao” recalls Barreto.
“He said, ‘the original store has an issue
“We ended up hiring Andoni and his sister
with the router. Can you fix it?’ and the
Daniela – who then became CMO in
rest is history. My friends used to joke
GOIKO – to be our community manag-
about it because, from day one, I was
ers. Fast forward five years and we
made CIO of a company and I was
meet again in Madrid, where I get a call
basically the IT consultant, the wiring
from Andoni.” At that time, GOIKO had
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GOIKO
140
and the CIO. That, along with shifts
burger buns, to the Aita burger, filled
and dealing directly with customers,
with Idiazábal cheese and piquillo
was key to live and understand the
peppers, GOIKO takes great pride in
whole thing.”
the fact that its menu is fresh, made
Barreto attributes GOIKO’s success
in-house from locally-sourced ingredi-
since that time to a marriage of technology
ents and always cooked to order.
and the company’s core values: quality,
“We take great care of the details of
efficiency, disruption, growth, good vibes,
every process, product and service,
family, integrity and Mucho Kevin.
so we can be sure that we’ve exceeded expectations every single time,” says
QUALITY AND EFFICIENCY
Barreto. “Then we have efficiency.
From teques, Venezuelan style moz-
We always make sure we’re comparing
zarella fingers, and artisanally made
and evaluating our performance
JANUARY 2020
to achieve efficiency and sustainability.” In order to help ensure that efficient
DISRUPTION AND GROWTH “We’re never finished; we’re always
operations are supporting the delivery
aiming for better,” says Barreto. “The
of a top quality product, GOIKO is
ability to grasp huge amounts of infor-
using an intelligent integration of third-
mation that technology provides is
party solutions that enable point of
allowing us to constantly get better
sale (POS) support, online ordering
and better.” To ensure that the benefits
and, perhaps most importantly, stock
of digital transformation are being felt
control. “These pieces of software
across the company, Barreto is taking
work together in the background to
great care to democratise and make
automatically give us great visibility
information-based insights accessible
of our stock levels, which supports
to a wider range of GOIKO employees.
smart ordering so that we don’t order
“I’m not a huge fan of terms like Big Data,
too much or too little,” says Barreto.
data science, KPIs and the like
E XE CU T I VE PRO FI LE
José Rafael Barreto Barreto has been GOIKO’s CIO since May 2016. He graduated from Universidad Metropolitana (VE) in 2007, obtaining a Degree in Systems Engineering. He also has an MBA by IESA. Barreto’s career started in Accenture, where he worked for almost three years as SAP Business Consultant, being involved in salesforce transformation projects. Then, he co-founded Sitioswao.com, a collection of small boutique hotels and convention center in Venezuela, and was Managing Director for seven years until 2016, when he joined GOIKO.
e uro pe .busi ne ssc hief. com
141
GOIKO
Deliverect “We have invested deeply in making the customer journey online smoother and with as few clicks as possible,” says Ibarra. “We are working with a third party called Deliverect to handle our takeaway orders.” Founded in 2018, the Belgian startup bridges the gap between a Point
of Sale (PoS) system and a delivery provider. By integrating into Goiko’s existing PoS and ordering system, Deliverect is allowing the company to automate ordering processes, saving time, money and giving a better, smoother experience to its valued customers.
Making delivery easy.
Deliverect connects the restaurant’s POS system with delivery platforms like Uber Eats, Deliveroo, Glovo, etc., automating online order management for optimum efficiency. Learn More
Request a demo
marketing@deliverect.com
143 because I believe they create an instant barrier between ‘tech people’ and the waiters, chefs and managers in our locations,” Barreto explains. One way in which he’s worked to demystify the process of drawing actionable insights is through a change of delivery method. “We’ve shifted over to using word clouds and very simple
“ IT’S NOT LIKE THE OLD DAYS WHEN THE MANAGER WOULD GET A PDF OR A SPREADSHEET EMAILED TO THEM EVERY TWO WEEKS”
graphs in order to make customer feedback trends understandable,” he says. “We take customer feedback and
José Rafael Barreto Ibarra, CIO, Goiko
use machine learning to put it through our platform in a way that is easy for anyone to access at any time. It’s not e uro pe .busi ne ssc hief. com
GOIKO
“ IF WE’RE GOING TO RELEASE AN APP, IT’S GOING TO BE CRAZY” José Rafael Barreto Ibarra, CIO, Goiko
144
JANUARY 2020
like the old days when the manager would get a PDF of a spreadsheet emailed to them every two weeks.” This dedication to enabling every member of the GOIKO family to use technology quickly and intuitively is present in every technological decision that Barreto makes, and he considers it to be a central element of the role of any CIO. “You’ve got to sell people on usability. We’ve seen a lot of systems, software and solutions that are like science fiction rocket ships. There are really complex algorithms that will do this and that, but when you get to the nitty gritty things, like you are sitting in front of it and you’re going to use it, you need to pay serious attention to usability,” he says. “You need to think of a waiter with 30 people in line. There are kids crying in the dining room. The restaurant is completely packed. Can you use this software easily on a day-today basis or in an emergency? That’s basically the final deciding factor. If it’s not intuitive, then what’s the point? UX is so important, because you can have amazing functionality, but it doesn’t matter if it’s behind a poor interface.”
e uro pe .busi ne ssc hief. com
145
GOIKO
GOOD VIBES, FAMILY AND INTEGRITY This attentiveness to the needs of real people in the GOIKO family is at the heart of the company’s entire ethos.
3.2mn
Customers served (2018)
“We treat people with respect, and cultivate joy, patience and enthusiasm,” says Barreto. “That was the key ingredient I detected on day one, so taking the job was a no brainer. I think a lot of our growth has to do with the type of
4.4mn Burgers sold (2018)
people that are serving the food and how we treat customers.” 146
MUCHO KEVIN “This one is a little more ethereal than good vibes, but we try and embrace the idea of Mucho Kevin,” Barreto explains.
trend,” says Barreto. If GOIKO makes an
“The Kevin Bacon Burger is our number
app, Barreto is certain that it has to be
one product and the value that we
Mucho Kevin. “If we’re going to release
associate with it is that we’re not afraid
an app, it’s going to be crazy,” he
of doing things a little differently. We’re
enthuses. “We’re really thinking out of
not afraid of a little weirdness.”
the box and want to create something
This readiness to step away from
really special and cool – that obviously
the herd and embrace kooky, different
lets you order food as well of course.”
ideas is one of the reasons why, until now, GOIKO hasn’t released its own app.
THE FUTURE IS FRESH
“A lot of chains offer you an app with the
Looking towards 2020, the develop-
classical functions like ordering, loyalty
ment of an app is a key area of focus
programmes, and so on. We didn’t want
for Barreto and his team (he confirms
to walk that road just to be a part of the
that he’s no longer spending his days
JANUARY 2020
147
fixing printers and debugging the wifi)
the boring bits”. More than anything,
as the company continues to expand
however, Barreto and Goiko will con-
at lightning speed. With more than two
tinue to deliver on the core values that
new GOIKO opening their doors every
have made the company a genuine
month, embracing employee-centric,
success story.
intuitive technology that supports the automation of processes and lets the company’s employees focus on delighting every customer is going to be essential. Barreto will keep exploring new ways of making GOIKO’s dashboards more friendly and making the information more digestible, as well as finding new ways to “apply RPA to e uro pe .busi ne ssc hief. com
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