Business Review Europe & Middle East – July 2015 by Business Chief Europe

w w w.b u s in e s s reviewe m e.c o m

BIG DATA: The Value It Can Provide For Marketers And Businesses

Jul y 2015

DIGITAL SINGLE MARKET STRATEGY: Why Opening Doors Beats Shutting Them

IT to I3: Telefónica’s Digital Transformation

EDITOR’S COMMENT

Idleness A New Evolution in Business? D O Y O U H A V E A reputation for taking short

cuts and playing fast and loose with SOPs? Don’t worry; you have what it takes to be an innovator. This month’s lead article shows how idleness can be a great catalyst for business evolution. We follow this up with an analysis of the marketing potential of Big Data and a look at the EU Commission’s Digital Single Market proposals and their implications for tackling cybercrime in a concerted and effective manner. Alexander Moiseev considers the balance that has to be struck between adequate regulation and the removal of some more restrictive barriers. Telefónica is Spain’s second biggest multinational corporation and since privatisation in 1997 its interests in the Americas, Europe and China have grown rapidly. However like all former national telcos it has been working hard to move beyond the monopoly mindset. In this issue we describe in depth Telefónica’s Global IT Transformation – a revolution, not an evolution, and one that promises to change the map of the entire sector.

Enjoy the issue! John O’Hanlon Managing Editor John.O’Hanlon@wdmgroup.com 3

Reason says: invest now to grow.

Instinct says: manage the current risks and challenges.

© 2014 Grant Thornton. All rights reserved. Authorised by Chartered Accountants Ireland (“CAI”) to carry on investment business. Grant Thornton is a member firm of Grant Thornton International Ltd. (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered independently by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see www.granthornton.ie for further details.

CONTENTS

Features

LEADERSHIP

MARKETING

BIG DATA: The value it can provide for marketers and businesses

The Idle Innovator

16 TECHNOLOGY

Digital Single Market Strategy: Why Opening Doors Beats Shutting Them

SPECIAL FEATURE

Arab Air Carriersâ&#x20AC;&#x2122; Organisation (AACO)

30 5

CONTENTS

56 68 Paltel Group

VIVA Kuwait

Telef贸nica

Company Profiles TECHNOLOGY 32 Telef贸nica 56 Paltel Group 68 VIVA Kuwait 78 ADNOC Distribution 92 JBK Controls

CONSTRUCTION 102 Mercury Engineering 114 Holcim Vietnam

July 2015

176 C & F Green Energy

MINING 188 Joy Global

EXPLORATION

202 Kunooz Oman Holding

124 Arabian Drilling Company

MANUFACTURING

FOOD 150 Danya Foods

ENERGY 164 Lanes Group

ADNOC Distribution

214 Hafilat Industry

SUPPLY CHAIN 228 APL Logistics

3W Networks

124 Arabian Drilling Company

188 202

Joy Global

Kunooz Oman Holding

150

102

Mercury Engineering

164

Danya Foods

Lanes Group

176 114

Holcim Vietnam

214

Hafilat Industry

C & F Green Energy

228

APL Logistics

LEADERSHIP

The Idle

Innovator

It turns out that laziness is the mother of invention, not necessity: while the industrious keep the system functioning through thick and thin, the idle always look for a way to do it faster and more simply Writte n by: DAN G R E G O RY AN D KI ERAN FLANAGAN

LEADERSHIP WAS THERE REALLY a need for drive-through restaurants, email or the World Wide Web? Certainly they are useful, life-changing in fact, but life would go on without them. Thus, if we are looking for innovation through the lens of necessity we are missing out on what really drives innovation: laziness. Not necessarily being lazy (making innovation happen takes intelligence and effort after all), but rather developing a lazy mindset. In other words, if we cultivate an idle mindset, we learn to question every process, system and activity that annoys us and begin to actively wonder how we might make things less difficult, easier, or even better. And it is in this process of questioning that innovative ideas begin to emerge. Smart and lazy is a wonderful combination. A wily mind and a reluctant behind can make magic where a diligent mindset merely applies effort to what already exists, or more precisely, what is currently expected. The television remote control was most definitely the result of these combined attributes. You can certainly see how the idea 10

July 2015

came about: one unwilling posterior and a cunning brain focused on a problem; ‘how can I possibly avoid getting up to change the channel?’ Facebook was invented by a group of college kids who were too lazy (and potentially lacked the social skills) to go ask a person’s relationship status face to face. Questions such as, “How can I avoid, mitigate, speed up, reduce, make easier, do less?” are an excellent place to start if you want to cultivate an innovation mindset. Naturally there is some initial work required to ultimately save time and effort, but the catalyst is typically a lazy thought. Contrary to popular belief, ideas rarely happen upon us. They may seem to arrive in a flash or a moment of inspiration but they are in fact answers to problems that have been mulling over in our minds – things we have been questioning, often subconsciously. This means that friction points, issues, problems and resistance are often critical ingredients to innovative thinking. In fact, the whole notion of avoidance can be a trigger for

T H E I D L E I N N O V AT O R

‘Questions such as, “How can I avoid, mitigate, speed up, reduce, make easier, do less?” are an excellent place to start if you want to cultivate an innovation mindset.’

LEADERSHIP challenging the status quo and evaluating whether legacy processes are still valuable and indeed linked to our current purpose. Yet so often in our modern workplaces we praise diligence and adherence to our systems lauding those that unfailingly follow them. We seldom create permission for a lazy mindset to come to the fore. If we want innovation that is useful and goes somewhere we must cultivate a lazy mindset. Here are some tips to help you nurture yours.

ook for problems L that cause pain Giving ourselves a point of pain is vital to innovation. Our brains are wired to solve problems and if we are to make the most of them we must give them some fodder to work with. Getting irritated, frustrated, and a little peeved is perfect. Being annoyed that the glass scratches on our phone screens (hello screen protectors!) or that the plastic bubbles (check out liquid screen protector) drives new thinking and products. So learn to embrace the idea of getting a little cranky and dissatisfied with the way things 12

July 2015

â&#x20AC;&#x2DC;We need to resist the temptation to fill all the space in our busy brains leaving no room to dwell on the issue we are looking to solve.â&#x20AC;&#x2122;

T H E I D L E I N N O V AT O R

The genius of a lazy mindset

are currently being done.

Think lazy Begin to place a value on inverse effort. Rather than praising effort blindly, filter tasks through an effort to result ratio. By becoming aware of these ratios (and when they are disproportionate) we can more quickly identify problems that need solving, systems that could be better and products no one has invented yet but really should.

Be actively lazy Being bored is also important for innovation. Once we have a problem defined we need to become okay with sitting on it. We need to resist the temptation to fill all the space in our busy brains leaving no room to dwell on the issue we are looking to solve. Often times a mind that is relaxed and allowed to daydream will make connections it is incapable of making under extreme stress. Who knows, a highly interruptive phone call that jolts you out of your daydream might be just the catalyst 13

LEADERSHIP

Dan Gregory & Kieran Flanagan are behavioural researchers and strategists, specialising in behaviours and belief systems – what drives, motivates and influences us. They have won business awards around the world for Innovation, Creativity and Return on Investment working with such organizations as Coca-Cola, Unilever, News Corp and the United Nations in Singapore. They are passionate advocates for the commercial power of creativity and a return to more human engagement, cultures and leadership. Published by Wiley, Dan and Kieran’s new book Selfish, Scared & Stupid is available in paperback RRP $22.95 from www.selfishscaredandstupid.com

July 2015

‘Lazy is not quite as bad a quality as people make it out to be. In fact, new ideas thrive in a mind where unnecessary effort or pain is irritating to the point we want to do something about it.’ Problems that cause pain you need to develop an ‘idea moment sensor’ that holds calls automatically based on your posture, physical movement or even that far away look in your eyes. (Ok the name needs some work but you get the idea). ssume other people A are lazy and your idea will need to be sold If you are trying to get an innovative idea off the ground remember that human beings are naturally lazy and have a bias towards avoiding change.

T H E I D L E I N N O V AT O R

This means we need to make it easy for them to buy your ideas. Make your ideas seem doable, possible and as unchallenging as you possibly can. Metaphors are an extremely powerful tool to help with this. They help establish a sense of, â&#x20AC;&#x153;youâ&#x20AC;&#x2122;ve done something like this before, so this should be a doddle.â&#x20AC;? If we are to develop more innovate thinking we must ultimately get better at accepting who we truly are. Rather than romanticising what motivates us we should work with the

reality of our natures. Human beings have a tendency to look for the easiest, simplest way to get things done: it is one of the reasons we thrived as a species. Our desire to make life less challenging is a quality not to be shunned but rather embraced if we want to drive innovation. Lazy is not quite as bad a quality as people make it out to be. In fact, new ideas thrive in a mind where unnecessary effort or pain is irritating to the point we want to do something about it. That is the genius of a lazy mindset. 15

MARKETING

BIG DATA: The Value It Can Provide For Marketers And Businesses In what ways should marketing and sales executives be exploiting the potential of big data in order to make better pricing and business decisions, whatâ&#x20AC;&#x2122;s the right mindset for a large organisation to develop, and what tools are available? W R I T T E N B Y: S E B A S T I A N M A M R O

July 2015

MARKETING LIKE ANY PART of a business, marketing departments exist to drive and boost profits. By using a variety of software solutions such as automated lead-generation systems, customer tracking and social media tools, marketers are able to be more productive in a variety of ways. However, when considering the marketing mix, the importance of pricing should not be forgotten. By leveraging the insights offered by big data, marketing executives can truly understand the best approach to pricing and at the same time prove their value to the business.

The marketing function in global businesses is often responsible for setting list prices for products and services, however, marketers rarely excel at the task. For distributors and retailers, this can mean a constant struggle to manage prices for thousands of SKUs, as well as associated discounts and promotions. And just as readily, those suggested list prices can be discounted during the sales process to close deals and maintain customer relationships. There is an unequal balance of power in the battle to maintain prices and margins in today’s highly competitive global marketplace. That’s because marketing and sales teams frequently don’t utilize the kind of big data tools and insights their customers’ procurement departments possess when negotiating prices and contracts. Adopting big data solutions to look across internal ERP and CRM data, as well as external marketplace information, can help to free marketing and sales functions from

‘By leveraging the insights offered by big data, marketing executives can truly understand the best approach to pricing’ 18

July 2015

B I G D ATA

time-consuming, manual spreadsheet updates and other inefficient pricing practices. Analytical tools can efficiently process vast amounts of data to identify customer segments and provide insights into specific customer buying behaviours. Using information this way can also identify the key drivers or variables that influence buyers, and determine their

Sebastian Mamro is General Manager for EMEA at the marketing data specialist PROS, He is responsible for PROSâ&#x20AC;&#x2122;s overall operations, including its go-to-market strategy, Sales, Marketing, Strategic Consulting and Professional Services. Mamro has been a key leader in growing the market by successfully supporting sales and customer strategies, building a foundation for growth with his wealth of experience as the head of the PROS EMEA Professional Services and Strategic Consulting teams in Europe. He has also participated in some of the industryâ&#x20AC;&#x2122;s largest implementations. Prior to PROS, Mamro led and managed strategic ERP, CRM and pricing software implementations on platforms including Baan, SAP, Amdocs and Sabre.

MARKETING

â&#x20AC;&#x2DC;Harnessing the knowledge locked in your big data translates into the power to price more efficiently and profitablyâ&#x20AC;&#x2122;

willingness to pay a certain price for a given set of products and services. As a result, pricing practices can be harmonised across the organisation and marketing and sales resources can be aligned to achieve strategic as well as tactical goals. Instead of constantly reacting to price changes in the marketplace, you can test various marketing scenarios and take a more proactive approach to decisions. Harnessing the knowledge locked in your big data translates into the power to price more efficiently and profitably.

B I G D ATA

Let me offer an example. A global chemical company based in Europe was able to analyse and interpret available internal data, as well as external marketing information. With these combined resources, the organisation integrated pricing and competitive and transactional data in one centralised location. The chemical company gained immediate value. By allowing the company to organise incoming data and identify key customer segments, it found 10 key value-based customerbehaviour drivers. Collecting this vast amount of data from various sources and putting it together meant that the company could determine list prices, which it could adjust to help achieve strategic margin goals. In addition, big data enables the company to execute more informed pricing decisions in conjunction with field sales operations, providing specific pricing guidance during contract negotiations. None of this would be possible using traditional pricing and sales methods that frequently rely on outdated, manual spreadsheets. Currently, marketing and sales executives can use pricing technology solutions to simulate pricing and

promotion campaigns as a predictive tool. Exploring and then choosing optimum pricing strategies, marketing and sales professionals can execute their campaigns then monitor and measure the results by regional markets, individual sales people and customer accounts. In the case of the global chemical company, a pricing initiative led by marketing and sales executives established a new process for setting prices that incorporated a wide range of variables, including product bundling, freight and handling costs, payment terms, discounts and rebates, and exchange rates across global markets. The pricing project identified more than $20 million of potential revenue uplift within the first quarter of implementing its big data analysis. Marketing and sales executives are increasingly faced with larger challenges. The growing complexity and competitive nature of global markets means that knowing how to successfully exploit big data is more important than ever. Luckily for marketers, the right tools and opportunities do exist and if used correctly will help them to deliver tangible results to their company. 21

TECHNOLOGY

DIGITAL SINGLE MARKET STRATEGY: WHY OPENING DOORS BEATS SHUTTING THEM After half a year of work, the EU Commission delivered on its promise and presented its Digital Single Market (DSM) strategy: although Commission officials were quick to state that it’s not the end, rather the beginning of a long road, we’ve now been afforded an insight into the priorities and directions of those responsible W R I T T E N B Y: A L E X A N D E R M O I S E E V 22

December 2014

TECHNOLOGY

Think security EXPERTS AND ANALYSTS were quick to express their views on the quality and ‘implementability’ of included measures, but at this stage, I don’t think there’s any point getting bogged down in the details. There are more steps in the process before any of this begins to have a real effect, not the least of which will be winning support of the European Parliament. For my colleagues and I at Kaspersky Lab, and I’m sure 24

July 2015

businesses right throughout Europe, the value is in recognising that we have now been presented a strategic view; one that gives more confidence to businesses and has the potential to encourage investment. At its core, the DSM is designed to remove barriers (and that can only be a good thing). The cybersecurity industry has long been advocating the importance of thinking about security from the outset of any strategic planning about

D I G I TA L S I N G L E M A R K E T S T R AT E G Y

the digital world (as opposed to an afterthought). So it is encouraging that among the 16 priorities outlined in the DSM strategy, the commission has recognised and shown a commitment to raising trust in digital services, which it hopes to do so by strengthening cybersecurity safeguards. In doing so, the EU has clearly shown its intention to not only build, but importantly, protect the digital market; notions which are not in themselves mutually exclusive. Granted, it’s not the first time we’ve witnessed a commitment from the Commission towards raising anti-cybercrime capacities within Europe. But now we’re seeing progress. For example, the

previously adopted EU Cybersecurity Strategy is being implemented, while the long-awaited Network and Information Security Directive, which aims to strengthen preparedness, cross-border cooperation and information exchange amongst EU actors, should soon be finalised. There is still work to be done to find a balance between privacy and security, but The General Data Protection Regulation, which addresses data protection rules, is also in the EU governing institution’s strategic pipeline, with a view to adopt it later this year. And in 2016, the Commission’s ePrivacy Directive should follow. But there are also some new ideas.

Privacy v security

TECHNOLOGY

Sophisticated cyber-gangs In the parts that relate to cybersecurity in particular, there is a strong emphasis on increased cooperation and ‘multi-stakeholderism’ at all levels; the most interesting of which is the establishment of contractual Private-Public Partnerships (PPP). As the European head of a global company, working in an industry that yields immense benefits from co-operation between different stakeholders: state-to-state, publicto-private, big companies-to-SMEs, this is of particular interest. In the cybersecurity industry, partnerships between private companies and public crime fighting organisations are becoming 26

July 2015

increasingly important and with good reason. In plain terms, they just make sense. We have a shared goal of protecting the world from cybercriminals – those who prey on individuals, governments and businesses using digital means for ill-gotten gain: be they financial

‘The cybersecurity industry has long been advocating the importance of thinking about security from the outset of any strategic planning’

D I G I TA L S I N G L E M A R K E T S T R AT E G Y

motivated, political or otherwise. In fact, there’s a growing body of proof, built upon recent success stories, which illustrates how cooperation between the private sector and Law Enforcement Agencies (LEAs) have helped reveal and neutralise the most sophisticated cyber-gangs. And you don’t need to look back very far to see evidence of it. The recent Simda Botnet takedown, which involved Kaspersky Lab, INTERPOL, officers from the Dutch National High Tech Crime Unit, the FBI, Microsoft, the Cyber Defense Institute, and a number of other stakeholders, is a classic example of the public and private sectors working together to achieve common goals. As a result of this collaboration, 14 Command and Control servers were seized in the Netherlands, USA, Luxembourg, Poland and Russia and consequently, up to 770,000 computers were disconnected from the criminals who had been controlling them. Preliminary analysis revealed a list of 190 countries affected by the Simda botnet, so it was a global problem solved with global resources. Without the shared resources, the operation would not have been anywhere near

as effective or extensive in its impact. But Simda was just one example. Perhaps the greatest testament to the success of this collaborative approach is the Carbanak investigation that we reported in February this year. The investigation saw members of our research team working alongside INTERPOL, Europol and other LEAs from all over

ALEXANDER MOISEEV Alexander Moiseev is Managing Director Europe of Kaspersky Lab. Appointed in July 2013 he has responsibility for the management of commercial and marketing targets of all Kaspersky Lab’s European offices. Alexander joined Kaspersky Lab in 2006 as Business Development Manager before becoming Managing Director of Kaspersky Lab Italy and Mediterranean in April 2008. During his five years in this position, Alexander has achieved remarkable results: sales volumes and brand awareness have risen consistently in the region, while the partner chain has expanded and grown stronger.

TECHNOLOGY Europe uncover a criminal plot that had led to $1 billion being stolen from banks around the world. Such was the scale of the heist, it was dubbed by some: ‘the greatest bank robbery the world has ever seen’ a robbery that might not have been exposed without our global partnership. While it’s still early days, it’s already clear that our partnerships with the public sector are becoming increasingly valuable for us (and the world). In fact, last year we agreed to station one of our best cybersecurity researchers, Vitaly Kamluk, within INTERPOL’s new Global Complex for Innovation

‘Up to 770,000 computers were disconnected from the criminals who had been controlling them’

July 2015

in Singapore. While he is still helping his colleagues in our Global Research and Analysis Team, his posting means he now works alongside experts from various private and public organisations from all over the globe, and of course, with INTERPOL’s own, newly established cybercrime fighting unit. There is a strong practical argument for developing and nurturing partnerships like this (what better way to fight a common enemy than to pool resources and share information?), but they also offer an opportunity to learn from each other and gain exposure to new ways of working, in turn boosting the world’s cybercrime fighting capabilities. This is incredibly important as each year, we are seeing more and more sophisticated attacks, many of which have a global impact. It’s through the lens of our own experience that I am intrigued by the proposed cybersecurity contractual PPPs – which the commission says will not only lead to more investment and innovation in this area, but stimulate the adoption of cybersecurity solutions by citizens and enterprises. In the commission’s own words, the idea stems from the need for more ‘Innovative ideas and solutions [that

D I G I TA L S I N G L E M A R K E T S T R AT E G Y

xxxxxxxxx can help better protect our society and economyâ&#x20AC;&#x2122;. It will leverage EU, national, regional and private efforts and resources â&#x20AC;&#x201C; including research and innovation funds â&#x20AC;&#x201C; to increase investments in cybersecurity. My hope is that by removing some barriers, for the sake of increased security, the EU and national authorities will not push for new fences, this time curbing competition. It would be a mistake for a continent that for years has benefited from its technology companies residing and prospering in the open cyberspace: Skype (Luxembourg), Spotify (Sweden) Rovio (Finland), Booking.com (Netherlands) and

Prezi (Budapest) among others. I also hope that the new European PPP initiative will not only increase funding for computing science and new scientific projects in the area of cybersecurity (through Horizon2020 and other new programs), but also foster genuine cooperation between the public sector and different stakeholders; academia, large companies, SMEs, whether of European origin or otherwise. If this is the case, European authorities can rely on us as their strong supporters who are always eager to contribute to development of cybersecurity capacities making lives of European citizens more safe and secure. 29

ADVERTORIAL

Arab Air Carriers’ Organisation (AACO) established its Regional Training Centre in Amman in 1996 to provide aviation training for AACO member Airlines, RTC mission statement is “to provide cost effective quality training, and to assist airlines to achieve savings in their training budgets without affecting the quality or the sum of training programs”. One of AACO RTC main focuses is to contribute in developing human resources for member Airlines by organising training programs for preparing and developing trainers in different aviation topics. In late 2009, AACO Regional Training Centre started operation a new branch in Cairo inside EGYPTAIR Training Centre. AACO RTC is a non-profitable organisation providing wide range of Aviation Courses, that address aviation related skills and needs such as Aviation Security, Safety, Cargo and Dangerous Goods Regulations, Airport and Ground operations, as well as selected Management courses in various management skills offered to its Airline members in the Middle East, located in Jordan, Amman main office and Cairo branch. The evolving Airline industry requires ongoing training, update of knowledge, and the current down cycle of the world economy derives us to concentrate on developing capabilities of middle and top management, and adopt several plans to prepare future leaders, hence the main objective for establishing the AACO RTC was to provide management training in the Middle East and African region at a cost effective structure due to the lack of experts in the aviation industry in the Arab region in this field. The first certification that AACO regional

Training Center RTC received in order to be able to provide any technical, safety, security or any other courses that need to be certified by the Civil Aviation Authorities in accordance with the regulations of J.A.A, F.A.A and ICAO, was that the Jordanian Civil Aviation Authority granted to AACO in 2005. It was then followed by the certifications of the Syrian, Yemen, Sudan, and Libyan Civil Aviation Authorities. AACO RTC receives the renewals of all these certifications on an annual basis or according to the expiry date of each certificate developments. AACO RTC organises an annual scheduled program ranges from 50 to 60 courses, to be conducted in different geographical regions in the Middle East, as Amman, Beirut, Cairo, Tunis and Abu Dhabi. As well AACO RTC adopted a strategy to promote in-house training activities which resulted in huge savings in training costs through train large numbers of airlines staff at their home base. AACO RTC in cooperation with its consultants had developed seven professional diplomas covering the most demanded aspects in the field: 1. Airline Marketing and Sales Diploma. 2. Airline Management Diploma. 3. Aviation Disaster Management Diploma. 4. Cargo Management Diploma. 5. Human Resources Management Diploma 6. Management Diploma 7. Executive Leadership for Professionals AACO RTC has successfully positioned itself as a valuable partner in human resources development for air carriers & aviation-related organisations in the Middle East. Including quite big number of various member Airlines from the Middle East while training their staff, gave AACO the power of identifying the updated training and development needs for both well-established and even small Carriers.

AACO announced broad partnerships that enhance AACO RTC position in the industry, such partnerships was verified with: • IATA (International Air Transport Association): partnership agreement between AACO and the IATA Aviation Training & Development Institute (ATDI) fuses the aim of both associations to upgrade the professional standards of air transport industry personnel with IATA’s highly qualified courses instructors and training assistance. • Concordia University: In collaboration with both ICAO and John Molson School of Business of Concordia, AACO organizes the Aviation Security Program (AVSEC), which considers the highest achievable certification for aviation industry managers working in the aviation security field. Eight successful AVSEC PM Program have been conducted so far. • McGill University: a new partner was welcomed to AACO RTC in 2014. By reaching an agreement with McGill University School of Continuing Studies in Montreal, AACO RTC

was able to add a variety of training courses and workshops in its schedule to enter new scopes and target the current training needs in market. • Emirates Security Group: Regional Training Center and The Center of Aviation & Security Studies (CASS), the academic arm of Emirates Group Security, have signed a Memorandum of Understanding ( MOU ) to extend the University Diploma Program i.e. University Diploma in AVSEC Management and University Diploma in Ground Handling to the members of AACO and inducted these as part of their center’s education curriculum with its offices in Jordan and Egypt. The two University Diploma courses are jointly developed by Edith Cowan University of Western Australia and Emirates Group Security coordinated and supported by CASS. For more information visit: www.aaco.org

IT to I3: DIGITAL TRANSFORMATION As one of the world’s biggest communications service providers Telefónica has committed itself to a transformation process that will make it futureproof in an era where technology evolves so fast that reaction is no longer enough Written by: John O’Hanlon Produced by: Kiron Chavda

TELEFÓNICA

Key Personnel

Phil Jordan Group CIO Former Vodafone CIO Phil Jordan became European CIO of Telefonica in July 2010, and was also CIO of O2 UK before becoming Group CIO in September 2011, overseeing the company’s worldwide operations.

July 2015

elefónica dates back to the early 1920s when Compañía Telefónica Nacional de España (CTNE) was founded to coordinate Spain’s telephone system. For the next 90 years it held a monopoly in the telecommunications sector following a model that has been mirrored in other developed countries. The magnificent headquarters building it completed in the centre of Madrid in 1929 was Europe’s first true skyscraper, and still looks down over the capital, a symbol of the dominant position the company holds in the economy. It has done everything expected of a major telecommunications provider, rolling out a fixed line network throughout the country, moving into mobile, broadband, subscriber TV services and wireless technology and competing effectively in global markets. In 1999 the company became public again and it is 100 percent listed with more than 1.5 million direct shareholders. It is present in over 20 countries across Europe and Latin America and serves more than 319 million customers. Its name still stands above that skyscraper but today the headquarters is in its equally impressive, futuristic, all-glass, 140,000 square metre Distrito Telefónica in Las Tablas to the north of Madrid and linked to the city via the Metro. Its buildings reflect the new reality for what used to be called a telecommunications company or telco, but should today be referred to as a communications service provider (CSP). No longer does it have a monopoly in any jurisdiction,

TECHNOLOGY

and though its fixed and mobile telephone networks are still part of its core business, it is increasingly having to bundle in new services as customers turn to ‘content’ heavy entertainment, video and internet based packages. These new services are increasingly provided by a new breed of digital company, smart and highly responsive to the market. Operating over the top of mobile, satellite and fixed line connectivity such companies increasingly exist on the internet without any burden of infrastructure. At the same time, in this digital world CSPs like Telefónica still keep responsibility for maintaining and extending the networks they own. Even today most of Telefónica’s revenues (over €50 billion in 2014) still come from ‘traditional’ fixed and mobile subscriber services and it has been difficult to move on from the monopoly and public service mindset responsibility and into the digital application and data age. The shift from monopoly to an increasingly deregulated market has not been without pain. The market has largely been opened up by regulation to stimulate competition, for example forcing fibre-optic network owners to allow access to ‘dark fibre’ capacity. Nevertheless the incumbent companies are still required to invest in and expand their LTE broadband, fibre and wireless networks. Network sharing is leading to ‘commoditisation’ of the networks, meaning they are becoming less of a differentiator for the CSPs and need rather to differentiate with the services

Jose Manuel Gascón, Director, Global IT Strategy & Transformation

Horacio Goldenberg, Global Head of IT Architecture

w w w. t e l e f o n i c a . c o m

TELEFĂ&#x201C;NICA

AlcalĂĄ Data Centre

July 2015

and experiences that run over the networks. This leaves a strategic conundrum: the market is getting diluted and less of the money is coming their way as entry barriers come down and upstart start-ups capture not only services they have just invented, but much of the old fashioned voice traffic too. The communications market is already saturated in most jurisdictions, which means that it is hard to grow in the old way, by connecting new subscribers. Growth has to come through greater attention to customers, who have begun to appreciate a wide range of converged products and services that can enable their mobile, always-connected lifestyles. With little in the way of overheads, a generation of voice carriers have brought innovation from outside the telco sector into the value chain. For example the VOIP technology used by Skype and others,

TECHNOLOGY

and image transfer and messaging services like WhatsApp and Snapchat, not to mention the likes of Facebook and Twitter, have destroyed value at the core business of CSPs like Telefónica. As a result of all of this, revenues have been under pressure. The recession has played its part in this but the underlying reasons are as outlined, and there is no way a company like Telefónica is going to sit back and watch its bottom line contract. The problem is that, from the relatively simple business model that existed before the digital age dawned (only really 20 years ago) and the exponential rise in internet and wireless-enabled applications and channels of communication started, the field has become extremely complex. Thinking and rethinking Capturing the growth over the last 15 years in the telecommunications sector, CSPs have been constantly adapting and evolving with complex engineering and business management fixes. Take the concept of quad-play, which customers now expect and operators aim to provide in a seamless way. As the four components of voice, broadband, wireless services and TV were bundled for the consumer, the fact that they evolved at different rates on different platforms was reflected within the business: one service to the customer but still four different functions in the back office. Today technology is coming along far faster than it can be developed in-house

‘Network sharing is leading to ‘commoditisation’ of the networks, meaning they are becoming less of a differentiator for the CSPs and need rather to differentiate with the services and experiences that run over the networks’

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Amdocs: Proudly partnering with Telefónica to deliver The New World of Customer Experience™ Amdocs, the leading provider of customer experience solutions, is proud to be a strategic partner in Telefónica’s global IT transformation. Working with Telefónica companies in Argentina, Brazil, Chile and Peru, Amdocs is helping Telefónica deliver The New World of Customer Experience™ in its largest and most advanced Latin American markets. In this new era, service providers need to be able to offer their subscribers exciting and personalized services, delivered consistently across channels and with a seamless network service experience in order to cement customer loyalty. At the same time, service providers need to accelerate business value by simplifying their complex IT environments, reduce costs and speed time to market. Amdocs is working with Telefónica to deliver on each of these priorities. The partnership began several years ago when Telefónica Argentina selected Amdocs to replace multiple legacy backoffice systems with Amdocs CES, its integrated solution suite spanning business support and operational support systems (BSS/OSS) for its wireless business. Telefónica gained a single, automated system that enables a consistent, seamless user experience across multiple channels and lines of business (LoBs) in a convergent environment. The new system made all transactions available online through multiple channels (Web or in-store) with full traceability for an enhanced, customer experience. Amdocs was subsequently selected to help Telefónica modernize its wireline operations in Argentina, with similar benefits. Building on that success, in 2014 Telefónica selected Amdocs for quadplay transformation projects in Chile and

Peru – giving customers in those countries the ability to move seamlessly between all interaction channels, whether self-service or agent assisted, via the Web, call center or retail store, across its entire quad-play offering – wireline, wireless, Internet and TV. The regional transformation gained further momentum in January 2015, with Telefónica Brazil selecting Amdocs for a transformation project for Vivo, Brazil’s largest mobile service provider, where Amdocs will help provide a seamless, multi-channel experience for Vivo’s quad-play customers across wireline (including fiber and PSTN), wireless (pre- and postpaid), Internet (including fiber) and TV (including IPTV). Importantly, all these initiatives support Telefónica’s transformational goals of using pre-integrated BSS/OSS solutions and business processes to replace legacy systems and to drive process standardization across multiple Telefónica operating businesses – resulting in scalable solutions that can be re-used across markets for maximum efficiency and return on investment. Amdocs’ commitment to Telefónica encompasses more than simply providing the industry’s most advanced suite of solutions – it also includes the full range of training, implementation, testing, business process design, consulting and managed services that are all part of Amdocs’ unique business model. With its more than three decades’ heritage of working with the world’s leading service providers, Amdocs is there to ensure Telefónica can focus on its core business – ensuring the best customer experience across all channels for all its hundreds of millions of customers seeking new and exciting ways to communicate.

TELEFÓNICA

“Of course networks have always been important to us and remain our number one asset, but IT has become mission critical” – Phil Jordan, Telefónica’s Group CIO

July 2015

and incorporated into the customer offering. The customer is sold a package or a bundle of services: it looks like a single product, but when they call up about their bill, or to ask for technical help with broadband, it is still possible that the response will not recognise that they also signed up for TV. The way the services that have been added or acquired by the business has also led to the existence of silos and duplication within the back office. Customers, in short, need to move seamlessly between all customer interaction channels across the company’s entire quad-play offering: fixed line, mobile, internet and TV. That is why Telefónica has developed a bold global IT transformation strategy. It involves thinking about IT in a different way. “Of course networks have always been important to us and remain our number one asset, but IT has become mission critical,” says Phil Jordan, Telefónica’s Group CIO. “It is driving our business to be digital in its DNA, creating multi-channel digital experiences, and also creating world-class virtual shared infrastructures right across the group.” From being a background enabler to record data

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and run internal systems, IT has become the key differentiator of the business allowing real convergence of these business support systems (BSS) without complex back office integration. It is, Jordan says, the only way to bring together all of the products and services Telef贸nica offers right across its global operations and delivers a digital experience for customers at the same time, enabling it to maximise its potential to get a fair return in the new digital value chain. For the customers, access through a single digital interface, wherever they want and in a personalised way, is what they will keep them on board in a world where brand loyalty hardly exists anymore! So Telef贸nica had to take decisive action. It could have continued to evolve as it has successfully done for decades, making small incremental changes and developing new business processes from scratch, or it could scan the industry to enable a transformation, looking for

NETWORK STATISTICS 274.5 Million Mobile Phone Accesses 36.8 Million Fixed Telephony Accesses 18.15 Million Internet And Data Accesses 5.1 Million Pay TV Accesses

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Telco OS As one of Telefónica ’s strategic ICT partners, Huawei synergistically aligns Telco OS with Telefónica ´s digital transformation strategy by providing key digitalizing solutions to create pivotal competitive advantages for the new digital economy. Telefónica and Huawei’s collaboration has also extended to projects in BSS transformation, data center transformation and operation, and big data, among others. The way we see it, such brilliant IT can perpetually power a digital Telefónica .

Ken Hu

Rotating CEO

ROADS

Real Time Tim

On Demand

Al All Online Onlin

The rapidly accelerating pace of ICT developments is changing how we live, work, and communicate. Huaweiâ&#x20AC;&#x2122;s Telco OS leverages and consolidates synergies among BSS, OSS, big data, data centers, and cloud technology.

Social

DIY DI

Native Digital@Cloud, a visionary set of services and solutions, provides Telco capabilities for the digital economy, including customer relevance, software define, servicedriven, data innovation, and infrastructural reconstruction.

Make IT Simple, Make Business Agile www.huawei.com

TELEFÓNICA

Telefónica’s growth has come from it’s greater attention to customers, who have begun to appreciate a wide range of converged products and services that can enable their mobile, always-connected lifestyles

July 2015

new technology that is built on standardised processes developed specifically for the sector. These do exist, having been built to standards defined and maintained since the collaborative TM Forum was formed in 1988. Telefonica’s strategy is to push parallel change in technology, organisation, and processes, impacting the whole company in countries that are part of the transformation. The main systems therefore will be replaced by pre-integrated bestof-suite solutions. The strategy will be to adhere to and adopt such out-of-the box functionality, changing it only if absolutely necessary, minimising customisation to ensure a faster transformation and make future evolution easier. This change and transformation process across an organisation the size of Telefónica will mean

TECHNOLOGY

embracing risk and a considerable amount of rethinking. But when done, it will leapfrog the company to the current state of the market and fit it to meet future developments (the speed of innovation means it’s pointless to predict). It will place Telefónica ahead of its peers. In place of evolution and always catching up, radical transformation presents the opportunity to stay ahead all of the time, getting to the market with new products before the competition. Analogous to a manufacturing company going lean, it will mean focusing on digital and realtime customer experiences and automating manual operations, inputs and interfaces, with opportunities to redeploy staff into areas of future differentiation. People will need to abandon their old operating practices and learn new ones. “This is a complete culture change, not focused only on processes but on business outcomes, taking a single view of the customer and using IT as an enabler for data differentiation in a digital world,” says Phil Jordan. The schedule The strategy is company-wide though the timing will differ from country to country. Currently the transformation is happening in 15 operating businesses (OBs), in each case led by its CEO. This change is of course an intensive learning process too; what works best will be shared as the process continues, a practice known as re-use, to avoid making the same mistakes more than once. Out-

‘Telefonica’s strategy is to push parallel change in technology, organisation, and processes, impacting the whole company in countries that are part of the transformation’

Telefónica’s representative office in Perú

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As a long-term partner with Telefónica, we provide in-depth IT expertise and next-generation business and operational solutions that enable and support Telefónica’s journey to becoming a fully digital communications service provider. Read more about NetCracker’s recent engagement with Telefónica here For more information about our solutions portfolio and its capabilities, visit www.NetCracker.com

Simplify end-to-end billing, ordering and fulfillment to enable the next-gen customer experience Standardize OperatiOnS Streamline processes and mitigate operational complexity

enable next-Gen billinG Accelerate time-to-market and improve mediation capabilities

Optimize CuStOmer experienCe Support self-service portals and personalize every interaction

SuppOrt CritiCal partnerShipS Simplify and automate the entire partner lifecycle management process

TELEFÓNICA

Telefónica’s representative office in Chile

Telefónica’s representative office in Argentina 48

July 2015

of-the-box solutions are being acquired. These are plug-and-play IT solutions that incorporate both standardised BSS methodologies and best of breed solutions. Adopting greenfield solutions and standardised technology means that upgrading will be done through the vendor’s regular new releases of the software. What is lost in functionality is gained in speed. The result? The twin peaks of automation and convergence. A leaner and simpler business. Telefónica will be able to use the R&D capabilities of these vendors to evolve its own business in a faster and more consistent way. The Argentina OB Telefónica de Argentina, the largest fixed-line operator in the country, was a pioneer in the transformation. This is a country where inflation and the macroeconomic situation are significantly shaping and changing the market, so becoming much leaner and more automated is imperative just to stay competitive. Telefónica’s OBs all have different reasons for having to transform. In some it is the incumbent provider offering quad play; in others it is snapping at the heels of another incumbent; in some it is a pure mobile provider; in Latin America the bulk of the market is prepaid. Some, like Argentina, are transforming ahead of the curve to meet new market challenges. In others it has to react fast in a situation where it lacks the capacity to complete. But they all have compelling reasons, and all share the vision of being part of the world’s leading digital CSP. Argentina is on track to become the first

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structurally integrated digital Telefónica business in the coming months, offering a model of what the strategy can achieve over the entire global business, with all of Telefónica’s Latin American companies now in the change process. “Each OB will own and manage its own transformation process,” says Jordan, “with close adherence to standards and reuse to maximise the scale and knowledge of our global business.” Reuse is thus a strong feature when Chile, Peru, Brazil, Mexico, Colombia and the other Latin American OBs implement, enabling them to complete the process in less time than it took Argentina. A business transformed by IT Transformation is a bumpy ride, and Telefónica has prepared for it by simplifying radically. More than 2,000 systems have been dispensed with across the business already and a further 1,500 will be replaced with out of the box solutions. The business is focusing on practices that can be automated and cutting out those that don’t add value. The culture change does not conflict with basic business principles and established best practices. Breaking down silos in the organisation should lead to a holistic approach to the market. What is happening to the telcos is reflected in other sectors, and Telefónica has been studying disruptions caused by platforms like Google and Facebook in the financial world as well. There is little difference, and the banks’ coping strategies

“Each OB will own and manage its own transformation process, with close adherence to standards and reuse to maximise the scale and knowledge of our global business” – Phil Jordan, Telefónica’s Group CIO

Telefónica’s representative office in Mexico

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TELEFÓNICA

€50 BILLION The Amount of Revenue Created in 2014

July 2015

will possibly prove a benchmark for the telcos, though there’s no sign that the banking industry is making any changes similar to those of Telefónica. The banks have their branches, the telecoms companies their networks. If the entire value chain of a CSP rests on its network it is no more than a commodity provider; essentially just a utility company. The telecoms value chain is huge and expanding, and though Telefónica knows it can’t command 100 percent of that value, through partnership it can participate in the greater part of it. However for a company that used to be the only game in town for its customers and suppliers alike, partnership has not been part of the culture. Playing in a global market, CSPs need to collaborate with vigorous and powerful digital

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companies. That’s another reason to reduce internal complexity. It will have to learn to be quick on its feet in seeking out the best of these and to partner with them speedily, something technical people are used to doing but traditional businesses and their legal teams struggle with. Partners in the plan This leads us to the partners that Telefónica chose to deliver the global IT transformation. The usual suspects, the traditional IT giants like IBM, Oracle or SAP are cross sectorial, and though Telefónica is a giant in its own right, it felt it would be better served by an industry partner, one whose stock would fall or rise in direct relationship to a top five global telecoms service provider. After all they were not looking for an IT supplier, but a true partner, a full stack provider, and someone who can transform the Telefónica business while integrating wireless, TV and fixed line solutions seamlessly. It chose not one but three, all with great strengths in the sector. These included Amdocs, a leading provider of customer experience solutions to more than 250 communications, media and entertainment service providers in more than 80 countries; Huawei, a Global Fortune 500 ICT solution leader service to more than 500 operators in 170 countries; and NetCracker Technology, a proven partner for end-to-end BSS, OSS and SDN/NFV solutions to hundreds of service providers around the world. For each of these

NETWORK REACH Presence in 21 Countries 120,000 Employees Consolidated revenues of €50.377 billion

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TELEFÓNICA

120k Number Of Employees Working For Telefónica 52

July 2015

companies, an alliance with Telefónica was much more than just another contract, more a strategic alliance. They all understand that the future of telecommunications is in the IT space and are preparing for the next disruptions in the market, which may be the internet of things (IoT), or machine to machine (M2M) that allow wireless and wired systems to communicate with other devices of the same type. With smart homes and smart cities already a reality, though in their infancy, the need for CSOs to participate is apparent. These companies were picked because they are trusted in the CSP IT space, the reliability of their solutions, and based on Telefónica’s ability to influence them. It is about evolving the

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partnership model so that they can gain influence and power in their own product roadmaps, shape the solution to their needs, and at the end of the day reshape industry standards. These ‘prime relationship technology companies’ have the capability required to enable Telefónica’s IT-enabled business and process transformation. They will standardise BSS platforms and associated business processes, support convergent services, improve customer experience and speed up the process of getting new or enhanced services to the market. Preintegrated BSS platforms and professional services will quickly replace existing legacy systems and drive process standardisation across

“The transformation brings a complete 360 degree view of our customers, with comprehensive and homogenous information that will help us to understand their needs and deliver the best products for them” – Phil Jordan, Telefónica’s Group CIO

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TELEFÓNICA

Phil Jordan, Telefonica´s Group CIO

July 2015

multiple operators. The solutions are scalable and lend themselves to re-use in multiple markets. NetCracker Technology has proven its solution innovation and implementation capabilities through numerous awards and consecutive CMMI Level 5 certifications. It is a wholly owned subsidiary of NEC Corporation. Huawei, a global ICT leader, has presented itself as is a key player in digital transformation with its ambitious Telco OS solution. Both NetCracker and Huawei are major players in digital transformation programs that leverage nextgeneration BSS, OSS and big data to support digital business operations and both are keen to expand their footprint in western markets, so the partnership offers benefits in both directions. The same is true for Amdocs, a global company headquartered in the USA, which combines a market-leading BSS, OSS and network control and optimisation product portfolio with value-driven professional services and managed services operations to touch every aspect of the customer experience. It has progressively worked with Telefónica Argentina, Telefónica Chile, Telefónica Peru and Telefónica Brazil’s Vivo brand on major transformation initiatives over a number of years. The transformation started in Argentina in 2013. As already stated, the process should be complete there by the middle of 2016. Mexico, Uruguay, Brazil, Chile, Peru and Uruguay started during 2014 and Colombia, the Central American countries and Ecuador are starting this year. All of

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them will have transformed completely by the end of 2018. This root and branch BSS transformation, it should be noted, is taking place without any break in Telefónica’s day-to-day operations. At the end of the transformation, Phil Jordan concludes, the businesses will be able to operate in real time, (as opposed in batches or with delayed delivery), with online, converged and automated processes that will dramatically improve the business agility and reduce errors. “The transformation brings a complete 360 degree view of our customers, with comprehensive and homogenous information that will help us to understand their needs and deliver the best products for them through an omnichannel experience. Thanks to the structured data-centric solution, we are enabling data monetisation, predictive analytics and insight driven differentiation.” Additional business benefits that will be achieved include the simplification and efficiency of the ‘cost-to-serve’ by shrinking the back-office, and reducing billing errors and consequent calls to the contact centre as First Call Resolution becomes the norm. As a result, costs will fall and revenues and margins will grow and stabilise. “We’ll stay focused on our customers while this transformation is happening. Service will reach a level we haven’t been able to reach before. The disruption will be worth it when customers start to notice the positive differences as they engage with us in a fully digital and integrated business.”

Company Information INDUSTRY

Telecommunications HEADQUARTERS

Madrid, Spain. FOUNDED

1924 EMPLOYEES

120,000 REVENUE

€50.3 billion (2014) PRODUCTS/ SERVICES

Telefónica delivers the best in class for mobile, fixed and broadband networks, and innovative portfolio of digital solutions.

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PALTEL GROUP:

Phoning For Fairness In Palestine Written by: John Oâ&#x20AC;&#x2122;Hanlon Produced by: Craig Daniels

PA LT E L

Paltel Group is a major telco that is running a sound business under extraordinary circumstances; to maintain business continuity in Palestine is a challenge â&#x20AC;&#x201C; to make consistent profit a miracle.

tâ&#x20AC;&#x2122;s difficult enough to run a telecoms operation today. Incumbent national telcos are a bit like national airlines or radio stations, increasingly beleaguered by piratical incomers who can cream off the benefits of new technology without the public service and infrastructure responsibilities governments place on their strategic industries. Imagine then trying to provide a public service but being unable to provide your customers with the latest technology because it is being used as a counter in a political game. Oh, and add an ongoing conflict across your home territory, with a key part of it a no-go area. That is the situation for Paltel, the provider of local and international fixed telephony services,

Jawwal Showroom in Al-Bireh, Palestine

July 2015

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internet, data communications, mobile services and next generation services to the people of Palestine. The Group also embraces the leading mobile operator Jawwal, the biggest internet service provider (ISP), a contact centre, a multimedia company and an IT company. Despite its problems it is the biggest private employer with roughly 3,000 employees and is a major contributor to Palestine’s GDP. Paltel stock represented 33 percent of the total market capitalisation of the Palestine Exchange (PEX) as of the end of May 2015. Ammar Aker has been CEO of Paltel Group for a little over five years now, though he has served the company for 16 years in all. It has been a long journey, he admits, but it has had its rewards. In the last five years the company has maintained its market leadership in fixed line and mobile communications in the West Bank and Gaza, not easy in the face of growing competition in a playing field that is far from level. Another achievement he is proud of is the improvement in broadband which now reaches more of the population. “We have been able to increase average broadband speeds almost eightfold. We have invested in both fixed broadband and the fibre network. We have a network of almost 1,700 kilometres of fibre in the West Bank and Gaza and we were able to grow the ADSL business by at least five times in terms of subscriber numbers, all over the last five years.” In this way Paltel Group has been able to

3,000 Number of employees working for Paltel Group

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PA LT E L G R O U P

The Opening Ceremony of the Paltel showroom in Hebron

maintain good levels of profit and cash flow in the face of all the changes in its market. He says that the shareholders have grown to regard their investment like a savings account, yielding a very respectable seven or eight percent each year! Continuing to focus on the positive, he turns to Paltel Groupâ&#x20AC;&#x2122;s overseas ventures. Before he took up the reins, Paltel Group had joined the rush to acquire licences in the effervescent telecoms market before the recession. Left with several unprofitable operations its overseas arm, Dubai-based Vtel in which Paltel has a 25 percent stake, set out to divest these and concentrate 60

July 2015

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on the region that was most promising. Perhaps surprisingly, this was northern Iraq and Kurdistan. “Eight or nine years ago the Middle East telecoms market was growing strongly and licences were granted everywhere, at high prices,” explained Aker. “Vtel started operations in some countries in the ME, one in Africa and three CIS countries. But the landscape of telecoms investments changed especially in the CIS and Africa after the financial crisis of 2008. Now we are focusing mainly on Iraq in the fixed line network and 4G (LTE).” As a result, following years of losses, Vtel is on track to return a profit this year, making a

“The landscape of telecoms investments changed after the financial crisis of 2008” – Ammar Aker, Paltel Group’s CEO

Senior Management meeting at Jawwal Company, Al-Bireh, Palestine

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PA LT E L G R O U P

A Ramallah Call Centre employee

positive contribution to Paltel Group’s bottom line. A peculiarity of Paltel Group’s market lies in the geography of Palestine. The West Bank and Gaza are territorially distinct, and the latter is an enclave under siege. This means that, much as Paltel Group would like to treat Palestine as unified, it can’t. “Movement between the West Bank and Gaza is not easy. We have to get special permits to travel between them - and for years it was not allowed at all. Consequently we have to rely on duplicate functions in the two territories. If we have an engineer in the West Bank, we have another engineer with the same title in Gaza!” Not the ideal way to run a business perhaps, and the people challenge is mirrored by the logistics

Customer service employees at Reach Call Centre in Ramallah

July 2015

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challenge, he points out. Equipment coming into Gaza from overseas meets interminable delays at the hands of the Israeli customs. Ammar Aker’s biggest headache is his inability to provide mobile broadband to customers who arguably need it more than most. Palestine is almost the only country left in the Middle East with neither 3G nor 4G coverage, he says: “Even a country like Somalia has 3G, but we can’t provide it, and we are losing a lot of potential revenue as a result.” To add insult to injury, because this is entirely down to Israel’s refusal to grant the required licences, some 3G coverage is available, since Israeli operators are permitted to provide coverage to its subscribers in the settlements across the West Bank. They can and do sell SIM cards to Palestinians living in towns like Ramallah. This anomaly has turned 3G into a political hot potato. When President Obama visited Ramallah in 2013 he was met by placards saying: “President Obama, don’t bring your smart phone to Ramallah; you won’t have mobile access to the internet; we have no 3G in Palestine!” Mobile broadband and 3G has become a highly strategic issue for Israel, which uses it as a political lever, however this should be a purely business matter, he adds. “We Palestinians paid the Palestine government for the 3G licence years ago, so Israel has only to release the frequency. But it continues to drag its feet.” And 3G is only one of the problems mobile users face in the West Bank. Since the separation

1,700 The current length in kilometres of the fibre cable used in the West Bank and Gaza Jawwal Showroom in Jericho

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Durable is an independent digital agency founded in 2007 with offices in New York and London.

durabledigital.com

PA LT E L G R O U P

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of Palestine into Areas A, B and C are under the Oslo Accords, area C has been under full Israeli control, and Palestinians are denied access to its development and resources. The absence of transmission towers for Jawwal and its competitor in the mobile space, Kuwaitâ&#x20AC;&#x2122;s Wataniya, means that service is spotty or non-existent between Palestinian cities. Meanwhile Israeli operators in the settlements give almost complete coverage. This weird situation has hindered growth and impacted revenues, and the only way the company has been able to maintain a reasonable financial performance has been by growing its ADSL and fibre optic. â&#x20AC;&#x153;We tried to make up for our lack of 3G by providing fixed broadband everywhere, but 3G and mobile broadband

1997 The year when Paltel Group was founded

Jawwal employee at a workshop at the company

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PA LT E L G R O U P

Employees at Reach Call Center in Ramallah

“The fixed line infrastructure in whole neighbourhoods has been destroyed by tanks and bombs”

July 2015

are different animals. The traffic on mobile broadband is probably ten times that on fixed broadband.” Despite the frustrating history here, he believes there could be progress as early as this year. “Every year I present two budgets to the board, one without 3G and one with. The reason I think it might happen soon is that Israel has now launched 4G, which will create pressure on the government there to move forward. Who knows, when and if they release 3G licences they may let us have 4G as well.” It is hard to imagine what it is like to be responsible for infrastructure in Gaza, which has undergone four wars in ten years and remains a region in lockdown. “The fixed line

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infrastructure in whole neighbourhoods has been destroyed by tanks and bombs and because it is part of the built environment we are not able to fix it until the entire area is restored. Mobile is different: where towers and stations are blown up, we are able to quickly rebuild them.” Paltel Group’s role however extended much further than keeping the network up and running during the wars. “Our people get injured and have been killed too, but their priority is supporting the communities there. People see us working on the telecoms and trying to help people, giving them shelter and food, and whatever the need to survive. We made sure people stayed connected. And with no electricity, our people had to go and refuel their generators manually while the war was going on.” He is very proud of this combination of technical with humanitarian work. In the battle for a decent life for all Palestinians, as much as in that for fair commercial play, Paltel Group sees itself as a part of the popular struggle. Community action is part of its daily remit, and for more structured help it has set up the Paltel Group Foundation, which supports a huge number of social, educational and health projects. Its Decent Life programme, targeted at helping the poorest, provides seed funding and technical assistance for setting up small businesses. “We take up between 90 and 100 projects every year,” says Ammar Aker, “though it lifts many more people than that out of poverty.”

Company Information INDUSTRY

Telecommunications HEADQUARTERS

Palestine FOUNDED

1997 EMPLOYEES

3,000 PRODUCTS/ SERVICES

Local and international fixed telephony services, internet, data communications, mobile services and next generation telecoms services

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VIVA KUWAIT:

Telecomms Front-Runner In The Middle East

As the fastest-growing and most developed telecom operator in the country, the firm is gaining a large share of the market Written by: John Oâ&#x20AC;&#x2122;Hanlon Produced by: Craig Daniels 69

V I VA K U WA I T

Eng. Salman Bin Abdulaziz Al-Badran, VIVA Kuwait CEO

IVA Kuwait has quickly established itself in the countryâ&#x20AC;&#x2122;s telecommunications market through providing a range of services to quench the customerâ&#x20AC;&#x2122;s thirst for effective mobile networks. The VIVA Internet today offers tremendous speeds because of 4G LTE technology the most sophisticated, high speed and technical application (HSDPA) network in Kuwait, which resulted in faster performance in the network at all times. The company continues to work on earning a significant stake of the telecommunications market in Kuwait, by offering an innovative range of best products and services of high value and quality. The entire organisation is guided by four main company values:

VIVA has rapidly established itself in the Kuwaiti market through its customer and employee-centric approach.

July 2015

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• ENERGETIC: Our passion is performance, innovation, and delivering of superior quality. We are efficient, reliable, and highly responsive to our clients’ needs. • TRANSPARENT: We are open, trustworthy and collaborative. • FULFILLING: We offer a wide range of easy to understand products. Our actions create value, helping our customers lead more rewarding and enjoyable lives. • ENGAGING: All of our activities revolve around our customers. Company ethos Launched in December 2008, VIVA stated it makes things “possible” for its customers by transforming communication, information and entertainment experiences. VIVA has rapidly established itself in the Kuwaiti market through its customer and employee-centric approach. Eng. Salman Bin Abdulaziz Al-Badran, CEO, said: “Our vision when we first started the business was to do the process of radical change by recognising the reality of the market and focus on customer needs in everything we say and do. The word VIVA means ‘LIVE’: we pledge the idea of enriching the lives of our customers through communication, and entertainment, and entertainment, and information transfer. “We strive to meet the ongoing demands and individual needs of our customers through

500 Number of employees working for the VIVA Kuwait “Our vision when we first started the business was to do the process of radical change by recognising the reality of the market and focus on customer needs in everything we say and do” – Eng. Salman Bin Abdulaziz Al-Badran, VIVA Kuwait CEO

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V I VA K U WA I T

HOLLYWOOD MEETS SILICON VALLEY

A MARKETER’S LENS 23 April 2015, DUBAI valleywood2015.com

July 2015

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the development of strong relationships with them, understanding that different people have different requirements when it comes to network capability and data usage, and just giving them the best possible experience over time. “VIVA provides business owners with the latest mobile phone and tablet devices for all business needs, a diverse selection of the devices are offered to satisfy all business requirements. Essentially our company brings tomorrow’s technology and innovation to provide business owners with complete communication solutions that suit the business’s needs as well as save time and effort.” VIVA’s Headquarters

Tangible progress VIVA Kuwait announced earlier this year

SUPPLIER PROFILE

in Olympia Towers

STARCOM MEDIAVEST GROUP

At Starcom MediaVest Group, our job is to create meaningful experiences for people with our clients’ brands. Our focus is to make these experiences simple and actionable in real time. With 129 offices in 80 markets, SMG is connected like no other network. Our 6,408 global media professionals are architects; building meaningful human experiences between consumer and brand for hundreds of clients, including many of the world’s most powerful marketers. www.starcommena.com

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69 The total number of retail branches in the VIVA Kuwait network

that it added six new retail branches to its network amounting to a total of 69 across Kuwait, reinforcing its presence and growing closer to its customers. The opening of these new branches came in line with the company’s expansion strategy to serve a wider audience across Kuwait by offering convenience in location, and in turn the provision of excellence in customer service, and unique and exclusive packages for its customers. VIVA’s network expansion with an additional six new branches is an achievement the company is proud to announce as it affirms its commitment to being as accessible as possible to its

VIVA and Huawei committed to strategic partnership to build “no edge” LTE network by deploying AICIC solution The AICIC (Adaptive Inter-Cell Interference Coordination) solution was deployed in April of 2015. Compared with the pre-deployment, a cell edge user’s average throughput increased 51.92% and the maximum amplitude reached up to 86%. AICIC greatly enhances the cell edge users experience and allows “no edge” LTE to become a reality.

Adaptive ICIC

www.HUAWEI.com

TECHNOLOGY

customers. VIVA will continue to move forward in the same direction, to ensure customers are served swiftly and efficiently. VIVA’s motivation to provide excellence in its services is driven by its passion to serve its customers and be closer to them wherever they are. Al-Badran said: “We are also opening registrations for fifteen trainees from private and public universities to take up 2015 Summer Internships. VIVA’s Summer Internship will begin at the end of July and run until early September to provide university graduates with working experience and hands-on training. The scheme is aimed at Kuwaiti students aged 18-21 years. Participants will spend four hours daily during the summer acquiring practical knowledge at

“We were able to establish our position as the second largest telecom operator in Kuwait with our customer base reaching 2.51 million subscribers” – Eng. Salman Bin Abdulaziz Al-Badran, VIVA Kuwait CEO

VIVA’s motivation to provide excellence in its services is driven by its passion to serve its customers and be closer to them wherever they are.

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VIVA honours its best employees.

2.51m The total number of customers subscribing to the VIVA network

July 2015

VIVA’s various departments and branches. “We feel this is a fantastic way for young people to get some real-life work experience but also at the same time serves as a way for us to bring youthful Kuwaitis through the ranks of the organisation.” VIVA has also posted some healthy financial results on all levels. Total revenues reached KD 66.5 million, a 20 percent growth compared with KD 55.4 million in the same quarter last year. Operating profit also increased by 34 percent in the first quarter of 2015 to reach KD 12.2 million up from KD 9.1 million and VIVA’s total customer base increased by more than 100,000 subscribers to reach 2.51 million. Not content with that, Al-Badran then

TECHNOLOGY

Company Information INDUSTRY

Telecommunications HEADQUARTERS

Kuwait FOUNDED

2008 EMPLOYEES

500

made the list of the Best 100 Chief Executive Officers (CEO) in the Gulf Cooperation Council (GCC) region for 2015, coming 87th. He concluded: â&#x20AC;&#x153;We are glad to have ushered in 2015 with these strong financial results. We were able to uphold our leading edge in customer service, which had a positive impact on our strong financial performance and improved our market share. This also helped us establish our position as the second largest telecom operator in Kuwait with our customer base reaching 2.51 million subscribers. We are looking forward to playing a central role going forward in providing smart capabilities and harness telecom solutions to provide the latest and most advanced services to our customers.â&#x20AC;?

PRODUCTS/ SERVICES

Advanced mobile telecommunications service provider

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From Tank to Bank: Adnoc Distribution’s IT transformation Written by: John O’Hanlon Produced by: Craig Daniels

ADNOC DISTRIBUTION

Adnoc Distribution does much more than just make sure the citizens of the UAE can fuel their cars: it is a diversified company with a key place in the economy, and an ambitious growth plan enabled by technology

July 2015

ention ADNOC and many will think of the iconic headquarters building the Abu Dhabi National Oil Company, the UAEâ&#x20AC;&#x2122;s biggest and the worldâ&#x20AC;&#x2122;s fourth largest oil company, has just completed in the capital city. However ADNOC Distribution, its largest subsidiary and the company that manages its parentâ&#x20AC;&#x2122;s downstream operations, is in its own right an impressive sized organization with over 13,000 employees, 250 service stations across the Emirates, and aviation fuel depots at nine airfields, including military installations. Owned by the UAE government, which tasks ADNOC Distribution among other key functions with converting cars to gas and vehicle registration and testing, it is a national institution though it has one foot firmly in the private sector, operating as a retailer and a dominant community based brand. The company is currently in a phase of rapid growth, spending more than $1 billion to increase the number of its service stations from the current level of around 300 to more than 500 by the end of 2016. The booming economy has seen demand escalate. The new stations are needed to cut queues and reach underserved areas. The company is also going to extend its service station footprint into neighbouring Saudi Arabia in this year In neither economy does petrol retailing make any money, since fuel prices are pegged at artificially low prices. As a result every

ENERGY

ADNOC Distribution – Aviation Operations LOB

opportunity to add value is to be seized upon. Within the UAE it relies on car washing and other vehicle related services and retail sales from convenience stores and food outlets to generate revenue. ADNOC Distribution’s expansion into Saudi Arabia will add to this revenue, given the strong purchasing power in the kingdom. Supporting millions of transactions using latest IT technologies at infrastructure level With such volumes and such complexity Adnoc Distribution turned to IT to automate processes and remove silos within the business, explains Ali Abdul Aziz Al Ali, VP of the IT division. “There are two sides to our technology, the back office that is owned by the company and the customer-facing side that is managed by the business owner. For example we have our ‘Rahal’ fuel smart card customers can use that to purchase any services at our service stations. Now at the back end I want to make sure my

ADNOC Distribution – Vehicle Inspection Center

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YOUR PARTNERâ&#x20AC;Ś. ....LET US BE A PART OF YOUR TEAM Abu Dhabi Oilfield Services is a wholly locally owned company established in Abu Dhabi in 1972 serving the Oil & Gas Industry in the Gulf Region. The companyâ&#x20AC;&#x2122;s primary objective is to provide Services to the Oil & Gas, Petro-Chemical and Utilities Sector throughout the UAE, Gulf and Regional Markets. The company operates from its Head Quarters in Abu Dhabi and has Branch Offices in Dubai (Middle East Oilfield Services - MEOS) and Engineering Facilities in Musaffah and Jebel Ali.

Tel: 00971-2-6344441 Fax: 00971-2-6344447 Email: zuhairs@adosuae.com sales@adosuae.com

www.adosuae.com

ADNOC DISTRIBUTION

ENERGY

infrastructure is ready for such transactions – so the customer can use the smartcard the way he wants and we can capture his preferences and make changes to the level of service.” The good news is that Al-Ali and his team have created powerful IT services, applications and infrastructure throughout the organisation. New service locations will have the benefit of plug and play support systems such as point of sale (POS) that can be installed in no time and at little cost. But that is only a part of the picture he says. “Everyone in the UAE who drives a car or flies in a plane is our customer, and many more besides, since we operate more than 100 C-stores (convenience stores) and are now opening up larger food and grocery stores (G-Stores) in city locations, quite separate from

SUPPLIER PROFILE

“Customer satisfaction is our main business driver” – Awad Ahmed Ali El Siddiq

ABU DHABI OILFIELD SERVICES (ADOS)

Abu Dhabi Oilfield Services is a wholly locally owned company established in Abu Dhabi in 1972 serving the Oil & Gas Industry in the Gulf Region. The company’s primary objective is to provide Services to the Oil & Gas, Petro-Chemical and Utilities Energy throughout the UAE, Gulf and Regional Markets. The company operates from its Head Quarters in Abu Dhabi and has Branch Offices in Dubai (Middle East Oilfield Services MEOS) and Engineering Facilities in Musaffah and Jebel Ali. www.adosuae.com

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Intertec Systems is a Top 10 IT systems integrator in the Gulf with 25 years of presence in the UAE. Our practices include: · Managed Services · Consulting · Application Services · Cloud, Data Center & DR · Business Applications · Networks & Security · Contact Center & BPO · IT Service & Operations Contact us: www.intertecsys.com • info@intertecsys.com

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Kongsberg provides the solutions that maximize performance in all offshore operations. We enable you to consistently act with precision and certainty in difficult conditions. You get the ability to predict events, which increases safety and efficiency, and reduces maintenance. You also get peace of mind, because you know your operation will always have our global support. With Kongsberg, you have the means to make the right decisions. You have THE FULL PICTURE. www.km.kongsberg.com

ENERGY

ADNOC DISTRIBUTION 1200000

Organization Growth - Transactions,Users & Database Demand 1000000

1 Million

900000 800000 750000 Year

Transactions Per Day

600000

Database Size (Terabytes)

Active Users Daily 400000

1500 Users

450000

2000 Users

2300 Users

2700 Users

3000 Users

3500 Users

300000 200000

2010

3 TB 1

2011

5 TB 2

2012

7 TB 3

2013

11 TB 4

2014

14 TB 5

2015

18 TB 6

Organization Growth – Transactions, Users and Systems Size Graph

the petrol stations. Altogether we have about 15 separate business units in the downstream oil & gas sector. We are highly diverse.” In 2010 the company processed about 300,000 financial transactions a day: today it processes more than a million. That is more than the largest bank in the country, and it has to be remembered that to maintain customer satisfaction these have to be carried out fast. “Customer satisfaction is our main business driver,” points out Senior Database Administrator and Team Leader Awad Ahmed Ali El Siddiq. “Our systems are optimised to deliver better user experiences: that is why we investing to improve our infrastructure and business applications. Part of our strategic vision is to really enable mobile apps, make use of big data and the cloud, and even to bring artificial intelligence (AI) into the picture!”

“Part of our strategic vision is to really enable mobile apps, make use of big data and the cloud, and even to bring artificial intelligence (AI) into the picture” – Ali Abdul Aziz Al Ali

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ADNOC DISTRIBUTION

ADNOC Distribution – Employee Counts over years

July 2015

The IT Roadmap and ERP vision behind the success In employee numbers, ADNOC Distribution has doubled in size since 2010, the year it launched its IT Roadmap. This gave a clear vision of the services to be addressed and the projects to be tackled year by year. “We are working on systematic suite of solutions based on business needs, though in many case we are actually exceeding the business requirement.” said Ahmed Al-Dhaheri , Application Systems Department Manager. “For example in 2011 we started integrating more than 15 major business application and database environments: we have consolidated all those systems. Now we have a single trusted platform for managing the entire company’s key information asset. This led to better IT support and administration and delivered over 20 times better application response times!” It was as recently as May 30 that the company announced the official deployment of Oracle

ENERGY

Unified Business Application - Enterprise Resource Planning

Enterprise Resource Planning (ERP) 12.2.4 running on Oracle Exadata and Exalogic Elastic Cloud engineered systems covering more than 40 Oracle business modules. ADNOC Distribution was one of the first organisations worldwide to successfully complete this mission critical upgrade, very much in line with the goals of the UAE’s ‘smart government’ vision. The ERP Project covered the implementation of Oracle Human Capital Management (HCM), Financials, Advanced Procurement, Enterprise Asset Management, Order Management and standard Business Intelligence applications using the latest version of Oracle R12.2.4 w w w. a d n o c d i s t r i b u t i o n . a e

ADNOC DISTRIBUTION

ADNOC distribution New Data Center Redesign Project

The organization has also implemented Oracle HR-Talent Management cloud based Solution That simplified and improved the entire performance appraisal process. Abdul Nazir, Senior Application System Analyst and ERP Project Manager said â&#x20AC;&#x153;The project has delivered the following strategic objectives: improved operational excellence; support for long term business goals, improved customer satisfaction; improved decision making; support for our paperless strategy; and greater system scalability, performance and availability. IT security is key within the O&G sector, said IT Quality Department Manager Abdelrahman Mohamed Abd Elaal. The implementation of ISMS (Information Security Management System) and ITPP (Information Energy and Procedures Projects) has laid the foundation for IT best practices, policies and procedures that guarantee safe operation for our customers, partners and employees, reducing information leakage risk and attacks, resulting in millions of dollars saved.â&#x20AC;? State of Art Data Centre and Disaster Recovery Facility IT service availability and redundancy is a key goal for the company to achieve, so that 100 percent of service levels can be covered in an emergency. To this end the data centre team established a new state of art disaster recovery data centre featuring best of breed technologies and solutions to support business continuity 24/7

July 2015

ENERGY

and guaranteeing world class level of security and speed. The project also involved a complete redesign for the primary headquarters data centre to support business expansion and additional power and cooling requirement. Not only will all the companyâ&#x20AC;&#x2122;s internal operations be managed on the common infrastructure services and ERP platform, but vital ancillary services as well, like the vehicle management system (VMS) that tracks and monitors the delivery trucks, the burgeoning retail operations, and the aviation operations. â&#x20AC;&#x153;Every drop of oil that we use is traceable, from delivery from the refinery to the tank farm, on

ADNOC Distribution Core Business Application Architecture supported by Oracle Engineered Systems platforms

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ADNOC DISTRIBUTION

ADNOC Distribution – SMAC Strategy Approach – Four Dimensions

ADNOC Distribution New Mobile Apps For Customers

July 2015

the trucks, at the petrol station and finally to the customer’s tank – from tank to bank!” Now that the infrastructure is in place, it will be a simple matter to scale it up, said infrastructure and data centre department manager Ahmed Al-Shamsi: “We are implementing systems that can be easily upgraded in a matter of weeks or even days to cater for any additional requirement – so if tomorrow our manpower increases to 20,000, or we decide to expand in the region, we can achieve that. No longer do employees have to juggle a host of applications in their daily

ENERGY

work, he adds. Best of breed solutions form vendors such as Cisco, HP, Oracle and Microsoft are integrated on a single infrastructure serving more than 5,000 employees on a daily basis and hundreds of customers and vendors online. “On top of that, we have enabled business intelligence so that management can have access to all the key data across all business lines, all of the time to support the decision making process.” Future plans toward operation excellence & business optimisation The team is very proud to have achieved this vision. “The implementations of various key projects was like completing a five story building, knowing we can safely go up to 20 storeys without having to strengthen the foundations!” said Ali Al Ali. “Energy is evolving fast and will not wait for us to react, so we have to be ready to take it on board. Our internal users and our customers all need the IT Division to ensure 24/7 availability of all systems: we absolutely have to ‘keep the lights on’ and at the same time we have to run a greener and a leaner operation. “Lean” is something understood at ADNOC Distribution, as demonstrated by the IT professionals who are creating an integrated system with Social, Analytics, Mobility and Cloud (SMAC) bundled together. It’s an example of the Enterprise Middleware program that by next year will dramatically cut the number of service requests to the IT Division for manual

OUTSTANDING INTERNATIONAL RECOGNITION ADNOC Distribution has won many recent international awards for its IT: • Best Energy Sector Deployment of the year 2013/2014 by ACN News • Best Energy Sector Deployment of the year 2014 by CNME-ICT achievements • Achieved ISO 27001 Certification - 2014 • Best Oracle Database Administration Excellence Award for EMEA 2013 • Best Oracle Engineered System of the year For EMEA 2013 • Oracle Downstream – Oil & Gas Excellence Award in Open World 2012 • Oracle Excellence Award for Exadata Implementation MEA Region 2012 • Best Oracle Cloud adoption for the year 2014 by Oracle Corporation

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ADNOC DISTRIBUTION

Best Energy & Industry Implementation Of The Year 2014 (Adnoc Distribution)

July 2015

interventions, leading to zero paperwork in many cases. As Awad El-Sidiq said, â&#x20AC;&#x153;One of our key initiatives in the coming period is to make use of big data and advanced analytics to optimise the business operation, increase revenue and maintain customer loyalty to our products and services. â&#x20AC;&#x153;With our Enterprise Mobility Program introduced this year, and our first mobile apps for customers, we wanted to promote fast access

ENERGY

Company Information INDUSTRY

Petroleum HEADQUARTERS

Abu Dhabi FOUNDED

1973 EMPLOYEES

13,000 REVENUE

Xxxxxxx PRODUCTS/ SERVICES

from anywhere at any time to key business services and applications in order to simplify the process and increase productivity. We believe that cloud computing is a key component on our ROADMAP and we are proud to be one of the earlier adopters to run private and public cloud hybrid implementation to get the best of both worlds for maintaining an excellent CAPEX/ OPEX strategy for our key IT services.

UAE government-owned company specialised in the marketing and distribution of petroleum products within the United Arab Emirates and internationally

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JBK Controls to grow inte

Qatar, part of the peninsula in the Arab Region, thriving in n JBK Controls WLL, an ISO Certified (ISO 9001-2008, OSHA by a 40 year old Qatari group of companies JBK Group. S the Chairman and owner of the group is a very renowned p related to the Royal family of the State of Qatar. His influen success of JBK Controls to be known as one of top most S Written by: Sam Jermy Produced by: Kiron Chavda

ernational brand

natural gas resources is home to AS 18001-2004 & ISO 14001 â&#x20AC;&#x201C; 2007) Sheikh Khalid Bin Jassim Al Thani, personality in Qatar besides being nce in Qatar is instrumental in the System Integrators in the Country.

JBK CONTROLS

JBK received a Platnium award for its outstanding and innovative work.

July 2015

anaged by ambitious entrepreneur, K Mohammed Ghazali, pioneer and Managing Director, JBK Controls started from humble beginnings two decades ago, marketing fire alarm systems to building complexes and residential properties; today it offers turnkey solutions in the entire spectrum of ELV systems. JBK Controls has a fully-fledged warehouse, testing and repair centre, training facility and site offices to cater to various needs of clients. Besides, JBK also offers post-contract and annual maintenance services and at any point of time carries a stock of €15 million worth of products. The firm was recently awarded with a Platinum Award from the Executive Awards held at Baltimore this November 2014, for its outstanding and innovative work on integrated security solutions created for a prestigious government owned project. Ghazali, though being modest about his leadership, is proud of the way the company has grown and greatly values the work of his employees. He said: “What makes us unique in competition is the way all our team members assist clients, its not only getting an order, it’s maintaining a permanent relationship which the ultimate aim”. Rajan Jagdish, Director at JBK Controls, said: “We have a task force of 700 working for us in Qatar and about 175 in our International branches. We have grown exponentially since 2008, almost

TECHNOLOGY

“We have grown exponentially since 2008, almost in tandem with the Qatar’s growth as a country” – Rajan Jagdish, Director, JBK Controls

One of the many buildings that JBK Maintains w w w. j b k c o n t r o l s . c o m

JBK CONTROLS

“You get much more convenience as a customer when dealing with one single company, as we are completely integrated” – Rajan Jagdish

in tandem with Qatar’s growth as a country, and that is why we doubled our resources to meet demands. We now cater to clients with a 24 hour response time from Commercial, Government and the Education Sectors in Qatar.” As a result of this substantial work, the firm has close to 250 people who focus solely on the maintenance services and is proud to possess a response time of less than 90 minutes. K Mohammed Nazzar, Director of Sales said: “Life & Safety still remains our flagship product, compounded by security systems and the building automation. You get much more convenience as a customer when dealing with one single company,

REACH THE PEAK OF BUILDING PERFORMANCE

JBK CONTROLS W.L.L.

IS AN ALERTON PARTNER IN QATAR!

Call now to help your building reach its peak performance:

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TECHNOLOGY

as we are completely integrated. In an emergency the customer needs information quickly so for them it is a clear advantage of dealing with one company with a single warranty throughout, making the process less complicated.â&#x20AC;? JBK Controls partners with global market leaders like Honeywell, Schneider, Brandrex, Mobotix Netapp, EMC and Cisco products. With the in-house testing facility coupled with extensive in-house training, the manufacturer rarely needs to be contacted to solve technical problems.

90 minutes The response time of JBK

Continuous improvement In terms of expansion within the organisation, JBK reacts as soon as the market does. For example, w w w. j b k c o n t r o l s . c o m

JBK CONTROLS

Khalifa Stadium

Ministry of economy 100

July 2015

the current global emphasis on energy savings and green efficiency means JBK is working to add green building energy capabilities to its premium product lines. JBK Controls has established itself Internationally after achieving significant success in Qatar through its expertise as a system integrator. With fully operational offices in UAE, Saudi Arabia, Oman & India, JBK Controls is now looking at making itself known in the Western and European markets. Although JBKâ&#x20AC;&#x2122;s foray into the international

TECHNOLOGY

market is in its early stages, its presence can already be felt. Key to further market penetration is the organisation’s ability to diversify within its industry, rather than entering unfamiliar territory. Sirajudeen Ahmed, Director of Corporate Administration, said: “One of our key strengths is the response time and the effectiveness of that response. We ensure complete satisfaction to the end product before sending it out of our premises as we value our credibility. “This is where we take very special care in hiring quality employees. With the rapid technology change, we ensure employees are well trained on each product that we market, right from the sales team to the commissioning team, all our employees are apt about what type of business we cater to. A staff turnover of less than one percent is a winning strength” Concluded Managing Director, K Mohammed Ghazali: “We intend on growing the international side of the business in the next five years. We already have a presence, but we are going to take those businesses to the next level and these are now the core focuses for future business growth. Our aim is to be a preferred partner globally in the regions we participate. “We always want to innovate, give the best offering to customers and bring the latest technology to them with our developing expertise. So that’s where we are heading, and that is why we are making major acquisitions and adding products to our stream.”

Company Information INDUSTRY

Technology HEADQUARTERS

Doha FOUNDED

1976 EMPLOYEES

850 in Middle East REVENUE

Not disclosed PRODUCTS/ SERVICES

System integrators

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Safety, Innovation And Qu

Shell Corrib Gas Terminal

uality: Building For The Future Written By: Abigail Phillips Produced By: Ben Walshe

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M E R C U RY E N G I N E E R I N G

Mercury Engineering was founded in 1972 by the late Frank O’Kane and Joe Morgan and over the past 42 years has grown into one of Europe’s largest independent engineering contractors.

he company has completed projects in 25 countries on four continents and has annual revenues that exceed €500 million. Since its inception, the company has focused on three core values (safety, innovation and quality) which guide the company today as it works with an ever expanding client base throughout the world. The key to every successful business is its staff and Mercury has always appreciated and valued its employees. The majority of its highly experienced team are long term direct employees who manage projects on behalf of its clients to the strictest codes of integrity and professionalism. Over the years, Mercury has grown organically to become a leading international multiservice contractor specialising in HVAC, Process, Electrical, I&C, Data & Telecoms and Fire Protection Installations. The

Bespoke interior fabrication for a Data Centre

104

July 2015

CONSTRUCTION

New Southern Glasgow Hospital & Royal Hospital for Sick Children

company also provides Project management, Design, Procurement, General contracting, Specialist Commissioning and Maintenance for specific clients and projects. Innovation and creativity at its core As a company, Mercury quickly adapts the latest building systems and services both through experience and the use of educational seminars. The company has extensive experience in modular construction, pods, prefabricated piping sections (design & build), IP controlled building management systems, energy management systems, as well as geothermal. Mercury has invested heavily in the use of

â&#x20AC;&#x2DC;A prime challenge faced by the company is to ensure that globalisation becomes a positive force for the businessâ&#x20AC;&#x2122;

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MECHANICAL & ELECTRICAL FIXINGS

t 0131 448 2525 f 0131 448 2526 e sales@mef.co.uk

Mechanical & Electrical Fixings Ltd. 10 Dryden Road Bilston Glen Industrial Estate Loanhead, Midlothian EH20 9LZ

www.mef.co.uk

EXPERTS IN ELECTRICAL COMPLIANCE

INSPECTION | TESTING | DOCUMENTATION | COMMISSIONING | SAFETY

• Fixed Wire Testing On New Build Projects • Electrical Installation Condition Reports (Periodic) • Independent Electrical Surveys • Witness Testing • Fault Finding and Rectiﬁcation • Medical Location Inspections and Solutions • Final Circuit Terminations • Hazardous Area Solutions • Thermal Imaging Surveys • Special Location Veriﬁcation and Testing • Modular Wiring System Testing • O&M Manual Requirements • Asset Registers • Commissioning Management T +44 (0) 845 226 7484 F +44 (0) 845 226 7485 info@groupmanagement.com www.groupmanagement.com

X X X

9 Lenziemill Road West Lenziemill Industrial Estate Cumbernauld, Glasgow G67 2RL Tel: 01236 735010 info@brysonbrown.co.uk

Thermal Insulation Sheet Metal Fabrication Heat Tracing Acoustic Insulation Noise Control Fire Protection

MC AO NN US FA TR CU TU CR TIO NG N

Building Information Modelling (BIM) and now employs over 120 80 BIM modellers. Using this technology the company can reduce waste both in terms of time and materials which ultimately improves project delivery times and reduces project costs. Since day one Mercury has been committed to delivering state-of-the-art technology solutions to its clients and will always be one step ahead of the competition when it comes to innovation. In the construction industry, change is no longer an event; change is business as usual. Mercury believes that adaptability and innovation are keys to positive change. Clients are demanding, “better, faster, cheaper” and competition is fierce. Globalisation, turbulent economies and fast evolving technologies further increase the pressures to “do more with less.”

Using this technology the company can reduce waste both in terms of time and materials which ultimately improves project delivery times and reduces project costs

Mercury has invested heavily in the use of Building Information Modelling (BIM)

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Mercury works with a broad range of clients from various industries

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M E R C U RY E N G I N E E R I N G The company’s future success is dependent on keeping the work force educated and equipped with the best tools and business processes.

Off site fabrication

A culture of change “It’s a fact that rapidly evolving and pervasive technologies are impacting almost every aspect of the construction business and there’s no doubt that these technologies have turned the way we work and communicate on its head. Information technology has opened up previously unimaginable possibilities has given us new tools to manage our business more efficiently and increase the level of service we offer to

Proud to design and deliver an intelligent building solution to the New South Glasgow Hospital Campus

At RKD we offer a variety of services and facilities: - Pre fabricated pipework - Module fabrication - Mechanical Modules - Electrical Modules - Riser Modules - Steel Work - Welding - Design - Installation

Boston Networks is proud to have delivered a future proof, secure and highly resilient network communications and security infrastructure, to provide seamless connectivity and security to the new South Glasgow Hospital campus.

www.bostonnetworks.co.uk

Tel: 01724 851447 johngrayrkd@hotmail.com

MC AO NN US FA TR CU TU CR TIO NG N

our clients,” said Ed McIntyre, Director UK . Mercury’s commitment to fostering a hightech working environment is demonstrated through the company’s use of the most up to date hardware and software coupled with ongoing training and support to all of their staff. The use of evolving technologies is also woven through the company’s future business plans. “Optimisation has always been a driving force in Mercury’s business. Every project the company undertakes is unique and has its own set of risks and challenges; however the company’s approach is the same; to optimise the engineering design, supply chain, installation techniques and management practices,” said McIntyre. In order to achieve this, the company puts a large emphasis on people and the culture of the business. With a long and varied history, Mercury has experienced both good and bad economic climates yet has managed to keep its head above water thanks largely to its commitment to technology and innovation. As McIntyre explained: “Relentless pressure by clients

Eoin Vaughan, Group Managing Director at Mercury Engineering

Ed McIntyre, Director at Mercury Engineering

‘Information technology has opened up previously unimaginable possibilities has given us new tools to manage our business more efficiently and increase the level of service we offer to our clients’ – Ed McIntyre, Director w w w. m e r c u r y e n g . c o m

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Bespoke interior fabrication for a Data Centre in Ireland

for continual improvement led the company to invest in and adapt multidisciplinary management, increase use of IT, make use of the most modern materials and to develop more efficient Installation practices. Many of the company’s competitors who didn’t or couldn’t embrace change are no longer here today.” Management mobility Mercury began as a local business and has become an International entity. So what made that transition so successful? “A prime challenge faced by the company is ensuring that globalisation becomes a positive force for 112

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CONSTRUCTION

the business. Mercury began its International expansion programme in 2000 and to date has completed projects in 25 countries on four continents. Undoubtedly, key to this successful expansion was the company’s management mobility, the businesses multinational client base and integrated IT systems,” said McIntyre. In an increasingly competitive environment, attracting new talent into the company is crucial to the sustainability of the business. Mercury actively recruits new people from a large and diverse set of candidates from across all of areas of operations. The company actively promotes Graduate placement programmes and works with professional institutions endorsing the industry as a career opportunity for school leavers. Increasing globalisation is another factor facing us all and is inevitable and irreversible. 2013 was the year that emerging economies accounted for half of the world’s GDP. The mobility of the world’s major manufacturers and the opportunities created around them presents business opportunities to those prepared to adapt quickly.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Glasgow FOUNDED

1972 EMPLOYEES

3,558 REVENUE

€550M PRODUCTS/ SERVICES

Engineering

Looking to the future “Mercury aspires to be the most successful multidisciplinary engineering contractor in every sector and geographical area in which they operate. The management are committed to investing in the company’s future and to supporting their client’s projects across Europe,” concluded McIntyre. w w w. m e r c u r y e n g . c o m

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HOLCIM VIETNAM:

The foundation of sustainable construction Written by: John Oâ&#x20AC;&#x2122;Hanlon Produced by: Kiron Chavda

Waste Heat Recovery Power plant at Hon Chong

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HOLCIM VIETNAM

Hon Chong Cement plant in Vietnam

Holcim Vietnam is a subsidiary of Holcim Ltd, one of the worldâ&#x20AC;&#x2122;s leading building materials companies with a presence on five continents: it is committed to sustainability and working to establish a lead in green products and manufacturing

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olcim Vietnam Ltd. (HVL) is a wholly owned subsidiary of the Holcim Group, one of the worldâ&#x20AC;&#x2122;s leading suppliers of cement and aggregates, ready-mix concrete, constructionrelated services, which operates in more than 70 countries. The licensed investment capital in Vietnam amounts to $495 million. Formerly known, until 2002, as Morning Star Cement Ltd, HVL was registered in February 1994 as a joint-venture company between Holcim Ltd. and Vietnam Cement Industry Corporation (VICEM) that respectively contributed in the Company 65 percent and 35 percent of its charter capital. Holcim Vietnam currently employs around 1,300 people at its four technologically advanced cement production sites and more than eight modern ready-mix concrete batching

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plants in addition to the HCMC Office. Sustainable Development is at the core of its business strategy embracing the Triple Bottom Line framework integrating economic growth, environmental performance and social responsibility. It seeks to balance those three aspects in everything it does. Holcim Vietnam’s holistic approach aims to create value for all its stakeholders. The launch of the Geocycle business unit in 2007 was a practical step towards the company’s sustainable development goals, providing waste management solutions to a diverse range of industries in Vietnam. Continuing on this path, the official launch of a Sustainable Development Department in early 2008 is testimony to Holcim Vietnam’s commitment to accompany Vietnam in its sustainable development journey. Founded in Switzerland more than a century ago, Holcim is going to be merged with Lafarge to create the world’s largest cement group with a production potential of 350 million tonnes per year. Holcim Vietnam is the leading supplier in that country of both bagged, dry cement powder and concrete, known as ready-mix or beton and supplied to contractors and building materials distributors in the country. It’s well known that Vietnam is a development success story. According to the World Bank, political and economic reforms (Doi Moi) launched in 1986 have transformed Vietnam from one of

Key Personnel

Mr. Nguyễn Công Minh Bảo

Holcim Sustainable Development Director Bảo holds a Master degree in Computer Sciences from Ecole Superieure d’informatique Paris, France. He has over 15 years international experience in France, UK and Asia in various management and consulting positions. Bảo moved to Vietnam in 2004. His bi-cultural background and professional experience in the private business sector, as well as non-government organisations, are a good combination for the position of Sustainable Development Director. He joined Holcim Vietnam at the end of 2007 to establish a fully Sustainable Development Department which integrates environmental, system compliance, corporate social responsibility, sustainable construction and corporate communication activities.

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Tu Phuong AD* Star Bag factory, branch of Plaschem is one of the leading block bottom bag suppliers in Vietnam Tu Phuong AD* Star was established in 2013 with the initial capital amounts to USD 15 million. With complete production lines from Starlinger- Austria, the factory produces 132 millions bags/ year and is yet still seeking for more opportunities. Having 23 years of experience in the plastic industry, we can ensure customers with quality and trust.

Refractory Castables • Refractory Anchors Insulating Materials • Tailor made monolithic refractories for Cement Kilns T +84 4 3543 0589 F +84 4 3543 0442 info@novaref.vn www.novaref.vn 11th floor • Lilama-10 tower • To Huu str • Hanoi • Vietnam

Phone + 84 72 3 55 00 11 Fax + 84 72 3 821 799 Mr. Bui To Dinh + 84 91 9485868 Ms. Bui Tu Phuong + 84 90 4357888 Ms. Dao Thi Thanh Nga + 84 93 7278664 Buitodinh_adstarbag@plaschem.vn

No. 6, Loi Binh Nhon Industrial Cluster, Loi Binh Nhon Commune, Tan An City, Long An Province, Viet Nam

SAFETY QUALITY EFFICIENCY We specialise in design, fabrication and installation of industrial equipment such as

• steel structures • pressure vessels • piping systems

info@noiluc.com www.noiluc.com

• • • • • •

T F E W

Process Automation Factory Automation Power Management System Electrical engineering Weighing - packaging Measurement and instrument +84 8 3736 0165 +84 8 3736 0166 info@dpta.com www.dpta.com

Duc Phong Technology and Automation Corporation 02 Duy Tan street Hiep Phu ward District 9 Ho Chi Minh city Vietnam

HOLCIM VIETNAM

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the poorest countries in the world, with per capita income below $100, to a lower middle income country within a quarter of a century with per capita income of over $2,000 by the end of 2014. Vietnam’s growth rate has averaged 6.4 percent per year for the last decade, but it has begun to slow recently. In 2014, GDP growth was 6 percent, projected to flatten in 2015 and to start to pick up in 2016. This is precisely reflected in the construction sector, says Nguyễn Công Minh Bảo, Sustainable Development Director: “Because of the general downturn economic situation, the demand for cement has been flat for most of this year, and it has been difficult to grow any part of the business because of overcapacity in the industry as a whole. Though some government projects are going ahead with lot of infrastructure development, the private sector has been stagnant due to lot of these projects going to SOE (State-own Enterprises). If anything the demand for beton has kept up better. Large construction EPC contractors will normally rely on Holcim because they know the company has the technical knowledge to provide them with the right high quality material for the job. They don’t have to look hard for proof. At the heart of Ho Chi Minh City stands the recently completed Times Square complex. At 163 metres it is one of the tallest buildings in Vietnam and the piled foundation slab had to be correspondingly tough. Holcim Vietnam provided a special solution comprising ‘mass beton’ concrete using low

Baghouse fillter at Hon Chong

“I think one of the biggest advantages of Holcim is that we have a very lean culture and a very efficient process” – Nguyễn Công Minh Bảo

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HOLCIM VIETNAM

Attendants taking WHR plant tour

“For us the waste management initiative is the perfect example of environmental responsibility in the service of productivity” – Nguyễn Công Minh Bảo

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heat ‘Holcim Mass Pour’ cement, and controlling the fresh concrete temperature with ice and chilled water to avoid any possibility of cracks. No other cement supplier could come close to that level of sophistication Minh Bảo points out. But the technical superiority of this company is internationally understood. One of its chief differentiating advantages in the local market is its sustainability policy. “Sustainable development is at the core of our business strategy: we try to integrate economic growth, environmental performance and social responsibility and to balance those three aspects in everything we do.” It’s a bold stance for a cement company to openly embrace the triple bottom line, and Holcim Vietnam had to take some bold steps to achieve it, he said, and was willing to put its money where its mouth is. “I think one of the biggest advantages of Holcim is that we have a very lean culture and a very efficient process. We have invested a lot in green manufacturing, and as a result we achieve better margins than our competitors.” Cement prices are pegged by the government, he points out, so the most competitive company will always be the one that controls its costs. The launch of the Geocycle business unit in 2007 was a turning point, and today Holcim provides waste management solutions to a diverse range of industries in Vietnam by co-processing their waste products in its cement kilns. In a single operation, a range of industries are able to dispose of their waste in an

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Waste heat recovery power plant from outside

environmentally friendly way, he explains. â&#x20AC;&#x153;The waste materials are collected and brought to our facilities at Cat Lai for temporary storage, pre-processing and laboratory test. Then transferred to our Hon Chong plant in Kien Giang province for mixing, shredding and coprocessing. In the kiln where the cement clinker is produced, temperatures up to 1,500 degrees are required to produce clinker, which means that even hazardous waste is safely consumed.â&#x20AC;? This has been a win-win operation for Holcim and the companies whose waste it processes alike. â&#x20AC;&#x153;We believe that if every company cleaned up its processes, it would work to their competitive advantage. For us the waste management initiative is the perfect example

1,300 Number of employees working for the Holcim Vietnam

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HOLCIM VIETNAM

Auto grab crane operating without operator

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of environmental responsibility in the service of productivity.” In Holcim’s processes it reduces the dependence on coal, and consequently the cost of clinker production: at the same time, it cuts the amount of material going to landfill, reduces emissions of methane, and helps reduce the risk of soil or water pollution from landfill sites. Further investment last year saw the kilns upgraded, and the addition of a waste storage unit supplied by alternative solid fuels handling specialist Walter Materials Handling (part of the ATS Group). This is a highly automated facility that improves safety by minimising human contact with the waste stream. In 2012 the company started to build a 6.27MW waste heat recovery power plant (WHR) at its Hon Chong plant. This $18 million plant is one of the outstanding milestones in the company’s sustainable development journey, since as well as contributing 25 percent of the power the cement plant needs, the generating station eliminates approximately 25,000 tonnes of CO2, the equivalent of 9,300 tonnes of coal per year, releasing back to the national gird the equivalent of 18,000 households’ electricty use annually. Two waste heat sources are used: the kiln preheater exhaust gases and the clinker cooler exhaust. “It represents a huge saving in terms of our carbon footprint,” says Bảo. “And it saves lot of cash from the business because we reduce power outages and our dependence on the national.” Construction of the plant started in 2012 and was completed in October 2013.

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It should be noted too, he added , that CO2 is not the only environmental impact from cement plants, which used to be notoriously dusty. However in Holcim’s achievement context, Vietnamese law requires that industrial dust emissions should be below 100 milligrams per cubic metre (mg/Nm3). Since the decision was made to replace the existing electrostatic precipitator (which was the state-of the art technology when the plant was built), which achieved between 40 and 50 mg/Nm3, with a bag filter, dust emissions have been drastically reduced and are now well below Holcim’s corporate target of 20 mg/ Nm3 (between 2 to 8mg/Nm3). Hon Chong can now be considered a world class facility. So far we have just spoken about process improvements, but another part of Holcim Vietnam’s vision is to formulate green products, using recycled materials where possible, to assist customers in Lotus accreditation (the local equivalent of Leadership in Energy & Environmental Design, or LEED). Vietnam’s construction industry is not ready to embrace these principles fully, but Bảo is determined his company should be well ahead of the market here. As an example, Holcim Mass Pour cement, referred to earlier, contains up to 60 percent recycled slag, twice as much as is specified by LEED or Lotus. It and many other Holcim products are the only products referenced in the green building materials database by the Vietnam Green Building Council.

Company Information INDUSTRY

Construction HEADQUARTERS

HCMC FOUNDED

1994 EMPLOYEES

1,300 REVENUE

$500m PRODUCTS/ SERVICES

Cement: green energy

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DRILLING FOR SAUDI OIL: The Arabian Drilling

Company restructuring plan Written by: John Oâ&#x20AC;&#x2122;Hanlon Produced by: Heykel Ouni

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The Arabian Drilling Company (ADC) is the workhorse of Saudi Arabia’s oil and gas industry: it is poised for a new era of modernisation, expansion, diversification and transformation driven by Technology and IT

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he Kingdom of Saudi Arabia is a forward looking country, which is rapidly expanding its economy, for example, by investing in ‘economic cities’ around the country, notably King Abdullah Economic City (KAEC) on its western, or Red Sea coast. Saudi Arabia is still heavily dependent on oil whereby 90 percent of its gross national product comes from the country’s oil reserves. The factories and service industries being developed at KAEC and elsewhere will, the Saudis hope, give the country a diversified economy fit for the long term. Extensions to the harbour will place KAEC among the top ten of the world’s largest container ports. Hence the $100 billion the state plans to spend over the next 25 years in creating this brand new megacity will come from one source - oil. The “hit” that the Saudi economy is taking from low hydrocarbon prices over the last year has been enormous. By the middle of 2014 the country had foreign exchange reserves of $800 billion. It is estimated that if the price of crude stays low these the reserves could fall to $500 billion by 2016. Fortunately oil prices are already trending upwards and Saudi Arabia currently remains third in the world after China and Japan in terms of forex but it clearly needs to look after its one asset. Oil exploration and extraction in Saudi Arabia is developed and managed by one single company, Saudi Aramco, which operates no fewer than 215 oil and gas rigs. Of these 32 are

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Above photo, left to right: Eng. Ali Ibrahim Al Naimi, Saudi minister of petroleum and mineral resourses. Mr. Saad Abdulla Saad, ADC Managing Director – Administration. Mr. Mohammad Yousif Rafie, Chairman of the board of directors of ADC

owned and managed by the Arabian Drilling Company (ADC). Established in 1964 ADC is a joint venture between the Industrialization & Energy Services Company (TAQA) of Saudi Arabia which owns 51 percent and Services Petroliers Schlumberger, the global leader in oilfield services, which owns the remaining 49 percent. The post of Managing Director (MD) is shared by the partners. Saad Abdullah Al Saab, the MD for Administration, has been at ADC for 43 years, while Ihab Hussein Gueneid, a Schlumberger veteran with more than 30 years of experience in the oil industry who came into ADC in March 2014, is Operations Managing Director. While operations are clearly the province of the latter and governance that of the former, “we are two sides of the same coin” says Gueneid.

Under the auspices of His Excellency Eng. Ali Ibrahim Al Naimi, Saudi minister of petroleum and mineral recourses, the Arabian Drilling Company celebrated its 50th anniversary on Wednesday 2nd April 2014 at Al-Khobar.

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WHERE YOU NEED US, WHEN YOU NEED US. When drillers invest in capital equipment, they require a dedicated service provider to support them for the life of their equipment. Cameron solves the unique service challenges of our drilling customers through an integrated, comprehensive, global approach. It’s what we call Full Life Cycle Support. Integrated Approach to Engineering We provide thoughtful solutions to your challenges. Our technical experts collaborate with customers to design drilling equipment and packages tailored to specific customer applications. Comprehensive Approach to Project Execution We deliver solutions in a timely manner. Our project managers coordinate the entire project from engineering through installation and commissioning. Global, Holistic Approach to Optimizing the Life of Equipment We support your drilling operation through the life of the field. Our competent, trained technicians throughout the world provide 24/7 support of your operation for greater efficiencies and cost savings. Our global approach means a responsibility of excellent service not only to our customers, but also to the communities we operate in. We employ and invest in people from local regions throughout the world so that host countries build the skills needed to continue their oil and gas development. One example of this commitment is our Cameron Al-Rushaid joint venture facility in Saudi Arabia. With 15 years of experience supporting drilling operations in the Middle East, this facility offers repair, field service, and recertification capabilities for Cameron’s pressure control equipment. Focused on local employment and development, we are proud that more than half of this facility’s workforce comes from the local area. Where you need us, when you need us. Trust Cameron’s Full Life Cycle Support for drilling operations. For more information, email drillinginfo@c-a-m.com.

AD00646DRL

SUPPLIER PROFILE

CAMERON

Cameron International Corporation (Cameron) provides flow equipment products, systems and services to global oil, gas, and process industries through three business segments: Drilling and Production Systems (DPS), Valves & Measurement (V&M), and Process Systems (PS). The DPS segment includes businesses that provide systems and equipment used to drill, control pressures, and direct flows of oil and gas wells. The V&M segment includes businesses that provide valves and measurement systems primarily used to control, direct, and measure the flow of oil and gas as they are moved from individual wellheads through flow lines, gathering lines, and transmission systems to refineries, petrochemical plants, and industrial centers for processing. The PS segment includes standard and custom-engineered process packages for the separation and treatment of impurities in produced oil and gas, so they can meet product marketing and pipeline transmission requirements. The company works with drilling contractors, oil & gas producers, pipeline operators, and refiners.

A R A B I A N D R I L L I N G C O M PA N Y Building over 50 years of experience, ADC provides its clients with safe and cost-effective drilling services through the combination of a well-motivated workforce led by a dedicated management team with the latest modern equipment and pioneering technology. ADC has adopted a very strict and serious policy in regard to quality, health, safety and the environment (QHSE), to the extent that this policy is considered the soul of the companyâ&#x20AC;&#x2122;s operations; onshore, offshore and in its facilities, he emphasises. Back in 2014 ADC owned 20 rigs and employed 2,000 people. In little over a year that has increased to 32 rigs and 3,500 people.

Mr. Ihab Hussein Gueneid - Managing Director - Operations.

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Proud Partners with Arabian Drilling Company At National Oilwell Varco we have the people, capabilities and vision to serve the needs of a challenging and evolving industry. With facilities strategically located in the Middle East, including Saudi Arabia, and all over the globe, we are here to help you succeed by providing local equipment and service requirements. We work side-by-side with Arabian Drilling Company as part of their strategic growth plan and look forward to continuing our partnership with them now and in the future. Visit us at nov.com/land and contact us at rig@nov.com to maximize your success in this challenging industry.

A R A B I A N D R I L L I N G C O M PA N Y “Our plan is to reach 60 offshore and landbased rigs by 2017,” he says. These are all new-build rigs and custom designed by top rig builders such as NOV, Drillmec, and Keppel. This way they are guaranteed to meet the needs of ADC’s sole clients, Aramco and Al Khafji Joint Operations (KJO), Aramco’s joint venture with Kuwait Oil Company (KOC) in the shared territory between the two countries. ADC has two offshore rigs and two multipurpose vessels, supported by a highly qualified and experienced staff with KJO in what is called the ‘divided’ region, the resources from which are shared equally between Kuwait and Saudi Arabia. As drilling activity picks up the company hopes to expand its footprint in Kuwait, and is starting to tender for direct

“Our plan is to reach 60 offshore and land-based rigs by 2017” – Mr. Ihab Hussein Gueneid - Managing Director - Operations

ADC opperates 32 rigs and manages 3,500 people

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WireCo WorldGroup速 is the world leader in manufacturing, engineering and distributing wire rope, assemblies, high tensile synthetic rope products and high-quality engineered products for oil and gas drilling, exploration, and subsea applications. Our products meet the most exacting standards and our technical support is the best in the industry. We have manufacturing and distribution locations strategically located throughout the world. Union, a WireCo WorldGroup brand, is the premier wire rope for drilling applications. We understand the oilfield market. Utilizing the latest metallurgical practices and unique design capabilities enables us to continue to innovate and provide the most cost effective line of oilfield ropes in the world.

The World is Our Worksite. www.WireCoWorldGroup.com info@WireCoWorldGroup.com

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contracts with KOC. It might not provide a huge level of diversification, but Ihab Gueneid is very keen indeed to give his personnel the opportunity to work in different international environments. Working with different clients and under varying conditions, he says, gives them a more rounded approach to the customer and extends their training opportunities and skills. An element of diversification would enhance, not dilute, the level of service ADC offers to Aramco. One of ADCâ&#x20AC;&#x2122;s greatest strengths is the diversity of its workforce, where they recruit and train a multi-national workforce from more than 30 countries worldwide working together and sharing common objectives. Continuing commitment to hire, train and retain a skilled base of local talent was reflected in a Saudisation rate of 70 percent

A naming ceremony was organised on 8th June 2013 in Singapore at the time of delivery of ArabDrill-50 (AD50) from Keppel FELS shipyard Singapore. The ceremony was attended by Mr Mohamed Yousuf Rafie, Chairman, ADCâ&#x20AC;&#x2122;s Board of Directors and ADC Board Members.

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OFSAT ARABIA (L.L.C.), is a company exclusively geared to serve the oil industry and has specialised over the past three decades, in providing onshore rig moving services and general off-road transportation services. Email : Telephone : Facsimilie : P.O.Box 6878, P.O.Box 20074,

ofsatsa1@ofsatarabia.sa + 966 13 881 2111 + 966 13 881 1991 Dammam 31452, Kingdom of Saudi Arabia. Al-Khobar 31952, Kingdom of Saudi Arabia.

A R A B I A N D R I L L I N G C O M PA N Y considering a total workforce of 3,500 employees. So Saudi Aramco shall always be the principal focus of ADC. Saudi Aramco has grown its fleet at an accelerated rate. In 2012 Aramco had 142 oil and gas rigs, today it has 215, and if hydrocarbon prices continue to recover this could go up to 250 by next year. Regionally the same thing is happening, Gueneid points out. Kuwait already has more than 90, but plans to grow to 180. All this naturally depends on global oil prices, but it illustrates an exciting and dynamic market for an oilfield services company like Schlumberger, and a drilling contractor like ADC. Schlumbergerâ&#x20AC;&#x2122;s involvement with ADC makes sense â&#x20AC;&#x201C; after all, the oil or gas rig is the platform for all the services that bring value to the operation. But growth at ADC is not merely

ADC has set a financial target for 2017 to grow by more than $1.0 billion.

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Risk. Reinsurance. Human Resources. Empower Results速 Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 69,000 colleagues worldwide, with 300 employees in 12 offices across the Middle East, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: aon.mediaroom.com.

T +966 11 44 22 700 Follow Aon on Twitter: https://twitter.com/Aon_plc Sign up for News Alerts: http://aon.mediaroom.com/index.php?s=58

A R A B I A N D R I L L I N G C O M PA N Y

A jakup rig

a matter of increasing the rig count. In financial terms, the target for 2017 is to be more than $1.0 billion. A strategy of this order calls for a radical transformation internally. There is nothing wrong with the systems and structures ADC has been operating with to date, he hastens to assert, on the contrary this is a strong business with excellent governance standards, which will only serve to make the modernisation programme he is leading more robust. “Right now we are creating what we are calling the ‘New ADC’. This involves overhauling the company’s structure, modernising our business systems, and getting our various functions from HR, training, supply chain, HSE, Technical and finance right through to the project and operations departments to work seamlessly together.”

“Right now we are creating what we call the new ADC ... overhauling the company’s structure” – Mr. Ihab Hussein Gueneid - Managing Director - Operations

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Bin Quraya has been servicing major clients such as Saudi Aramco since 1975, and subsequently extended its crane and heavy equipment rental activities to include SABIC, SCECO, international ďŹ rms such as Shell and Weatherford, as well as major private sector industries and utility companies throughout Saudi Arabia and the Middle East.

Heavy Equipment Rental | Pipeline Construction | Rig Move | Real Estate | & More

tel: +966 13 868 2044/55/66

A R A B I A N D R I L L I N G C O M PA N Y At the heart of this transformation is the creating of a new IT department, tasked with the implementation of a new Enterprise Resource Planning (ERP) system. Till now ADC has worked with a JD Edwards legacy ERP platform that acted as a repository for all the data the company needed to make strategic and day-today management systems. The problem was that obtaining the right information took time and involved a lot of manual input. Migrating to a new SAP system and replacing a number of different systems, some that were paper based, some that were automatically processed, with a single desktop system that will allow the company to streamline and speed up its operations. For example, in the past, buying supplies and equipment was often a slow, complicated process

With the new SAP system employees can act as their own purchasing agents, placing orders directly through their PCs and receiving the goods they need much more quickly

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Key Personnel Ihab Hussein Gueneid Managing Director â&#x20AC;&#x201C; Operations Born on December 5, 1956, in Cairo, Egypt, Managing Director Operation Ihab Hussein Gueneid with a dual nationality, Ihab joined Schlumberger on April 1985 as Wire Line field engineer in China, Egypt, Turkey and Qatar. In 1991, TLC/CTL activity started in the Gulf Area and he was given the opportunity to be the TLC/CTL specialist for the Gulf region based in Qatar. Two years later, Ihab Gueneid continued to work for Wireline as Field Service Manager, Location Manager and then Account Manager based in Abu-Dhabi. Since 1998, he held variety of positions for the Gulf region, he was Wire Line & Testing Technical Manager, became Drilling and Measurement Operation Manager in 2000. At 2001 he is assigned as the Oil Field services Marketing Manager for East Africa& East Mediterranean region based in his home town, Cairo. In 2003 he moved back to the Gulf as region OFS Marketing Manager for the next four years. In mid-2007, Ihab Gueneid moved to Gatwick where he worked as Global Business Development Manager for Integrated Project Management HQ(IPM). In early 2010, Schlumberger made a huge acquisition of SMITH International and Ihab Gueneid was assigned a challenged position as Area Vice President-Integration for the Middle East. After completing the SMITH International integration mission, he became Yemen OFS General Manager for a period of 2 years until May 2014 and since then he became Area Vice president and Managing Director-Operation for the Arabian Drilling Company, ADC, based in Saudi Arabia where he brought a wealth of experience in new technology, integrated solution and project management. Ihab Gueneid graduated from Ain Shams University / Egypt in 1980 as Computer& Automatic control engineer, got his Master in Strategic management from France in 2003, and he is nearly finished a Petroleum Engineering Master from Heriot Watt [only theses missing], he has a degree in Project management, PMP, from Heriot watt-London in 2007 and He earn Project Management Expert title form the American Society of Project Management in 2014. Married with 2 girls, he likes walking, drawing, reading Islamic history and spending time cooking with his family in Egypt.

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that required a lot of people, a lot of paperwork, and many approvals. Under the new system employees can act as their own purchasing agents, placing orders directly through their PCs and receiving the goods they need much more quickly. At the same time, the use of a single system throughout the organisation enables it to consolidate purchases and gain greater volume discounts from its vendors. The benefits of implementation of SAP will facilitate taking glitches out of the process and will be tangible, says Gueneid. “SAP will place as much integrated data, information and reporting at the fingertips of managers as they need to take decisions at the right time. In addition, SAP is becoming the industry standard throughout the oil and gas sector, which means that our businessto-business communications will be a lot easier.” The IT transformation has just been launched, having been approved by the board; over the next two years ADC will implement most of the SAP ERP modules and platforms, as it integrates and standardises all its legacy systems taking the company to the next level of technology

‘SAP will enable us to make a lot of savings. The change will give us the ability to make decisions based on full data and sound information’ – Mr. Ihab Hussein Gueneid - Managing Director - Operations w w w. a r a b d r i l l . c o m

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Key Personnel Tawfeeq Al-Halal General Manager â&#x20AC;&#x201C; Administration Born on June 12, 1976, in Al-Khobar, Saudi Arabia, General Manager Administration Tawfeeq Al-Halal joined Arabian Drilling Company (ADC) on March 1999 as Accountant. With more than 15 years of experience in the Drilling industry, Tawfeeq Al-Halal was involved in various change initiatives and functions in ADC such as Finance, Auditing, Supply Chain, HR and Training. In 2001, Tawfeeq Al-Halal was given the opportunity to work with Schlumberger as Management Accountant in Saudi Arabia. Two years later, he began another challenge when he moved to ADC as Internal Auditor. In Early 2008, Tawfeeq Al-Halal was assigned a challenged position as Supply Chain Manager for a period of 3 years then Humane Resource Manager until January 2015 and since then he became General Manager Administration for ADC leading the structure changes of the company and introducing the latest business system to cope with the growth ADC plan. Tawfeeq Al-Halal graduated from King Fahad University of Petroleum and Minerals, Saudi Arabia in December 1998 and got Certified as accountant public accountant from Saudi Organization for Certified Public Accountants (SOCPA) in 2002. Abdullah Radhwan Deputy General Manager â&#x20AC;&#x201C; Operations It all began when Abdulla Radwan joined Arabian Drilling Company in July 1992. His carrier started as a Trainee Engineer enrolled in the Technical Development Program and then promoted as an Operations Staff Engineer. In 2000, through the special exposure program, Abdullah Radwan seconded to Schlumberger and started the challenged journey from Algeria, Dubai and finally Pakistan. Through the 4 and half years with Schlumberger, his skills in different managerial positions serving different clients such as BP, BHP, Anadarko, Shell and Sonatrach, made him look at the business from a different prospective. A second journey started when Abdulla Radwan came back to Saudi Arabia with Khafji Joint Operations and then with Saudi Aramco. The challenges never stopped handling both Onshore and Offshore operations, HSE and Training Development. Being exposed to Operations, HSE and Training Development he has shaped up his management skills dealing with challenging situations taking on spot decisions wisely serving company vision and mission. Being currently the Deputy General Manager - Operations had changed his view on how drilling business should be run by working with a highly devoted strong team building Arabian Drilling Company future. 144

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leadership in the industry, he says. “What with training, and making sure the data is migrated without disrupting our day-to-day service and operations, we will be very busy – but it needs to be done if we are to grow as fast as we plan to.” It will, he concludes, change the entire application landscape of ADC. “SAP will enable us to make a lot of savings. The change will give us the ability to make decisions based on full data and sound information. It will facilitate a programme of automation.” The big difference he notices between running drilling company and oil services provider is that the drilling business is more capital intensive. A land rig can cost $50 million, an offshore rig $300 million, and each rig needs between 80 and 110 people to run it. Down time is an anathema, and stacking, when rigs are idle for longer periods, waiting for a new contract is unthinkable. The good news is that firm contracts with Saudi Aramco and the expansion in the market keep ADC’s utilisation levels high. ADC is headquartered at Khobar in conjunction, with the adjacent cities of Dammam and Dhahran form Saudi Arabia’s oil industry hub. The client finds it advantageous to spread the rig contracts across a dozen drilling contractors. ADC’s market share is currently 14 percent, putting it at the top of the field. However most of the competition relies heavily on management and labour brought in from other countries whereas 70 percent of the employees of ADC,

Key Personnel Saad Saab Manager Director – Administration The Journey started on May 1972 when Saad Saab joined Arabian Drilling Company. He started his career from the rig floor level on Rig AD-01 as a Roustabout through the auspices of a special accelerated management development program. Hence throughout his career he worked his way up to various Managerial Positions in Operations, HSE, Supply Chain and Human Resources in conjunction with Training. During this time frame due to his exposure to various challenges and trials within the various organizational disciplines his management skills were broadened and honed. Because of his understanding and thorough knowledge of the core business from the ground up he was promoted to a Managing Director Administration for ADC in 1996. His team building and management skills contributed to ADC’s phenomenal growth from one drilling rig to operating 32 drilling and workover rigs, on land and offshore throughout the economic cycles of the oil industry

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Global Best Practice

Local Management We are a leading supplier in KSA of catering and support services to the remote sector catering&services@saudiacatering.com www.saudiacatering.com

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ThyssenKrupp Materials Oil & Gas is a global network of specialists dedicated to securing supply for customers and sub-suppliers from the Oil and Gas industry. The range of products includes semi-finished products from corrosion resistant alloys, such as nickel alloys and stainless steel, and drilling tools. Strong local presence in the core markets of the oil and gas production, and additional usage of the global network and infrastructure of the ThyssenKrupp Business Area Materials Services, as enabler to offer customers global supply chain solutions. Furthermore in house metallurgical resources collaborate closely with customers, to find individual technical solutions for future challenges. Products and Services ❙ Beryllium Copper (BeCu) ❙ Drilling tools ❙ Precision processing capabilities ❙ Nickel alloys ❙ Stainless & low alloys ❙ Global supply chain solutions

Contacts: www.thyssenkrupp-materials-oil-gas.com oil-gas.materials@thyssenkrupp.com

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A R A B I A N D R I L L I N G C O M PA N Y

A land rig can cost $50 million, an offshore rig $300 million, and each rig needs between 80 and 110 people to run it

as the only truly Saudi drilling company, are Saudi nationals. Perhaps surprisingly Saudi representation is even stronger at management level than in operations. Apart from Gueneid’s co-MD Saad Saab, the operations, HR, supply chain and training managers are all Saudis. This gives ADC an edge when dealing with Aramco. It is not just the language (most meetings in the sector are conducted in English) but more the understanding of the culture, and the fact that ADC staff are living locally and not always looking forward to their next ‘home’ leave! This success is largely down to a determined recruitment and training programme over many years. The company’s training centre at Dhahran was one of the first in the sector and now is one of biggest drilling training centre in the country.

‘The company’s training centre at Dhahran was one of the first in the sector and is one of the biggest drilling training centre in the country’

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A R A B I A N D R I L L I N G C O M PA N Y

DTC has received accreditation for more than 30 training courses from IWCF, IADC and other international institutions such as OPITO

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As well as drilling students learn the important disciplines of well control, the core business of ADC. Today, ADCâ&#x20AC;&#x2DC;s Dhahran Training Centre (DTC) is conducting more than 100 training courses. DTC has received accreditation for more than 30 training courses from IWCF, IADC and other international institutions such as OPITO. At the IADC and SPE-accredited facility, entry level students can learn the field skills they will need to do the job. A number of graduate students are recruited direct from King Fahd University of Petroleum and Minerals, also in Dhahran where in three years they complete an accelerated training programme which would take ten years for a candidate starting from scratch. Some of the more specialised training is delivered abroad, however basic

E X P L O R AT I O N W O R L D

skills, including ‘soft’ skills in administration, HR and the like, are all available in Dhahran. Saudisation is one thing, but employing women is less of a national priority. Nevertheless Ihab Gueneid’s last job was in the conservative Yemen, where 60 percent of his office staff was females whose commitment and competence he particularly appreciated. “When I came here despite the high education level of Saudi women there were no women in the company: now we have 16 ladies working for us.” The first one is the MDs executive assistant, he says; the others all work very successfully in finance, supply chain and HR roles and the number is increasing. Ihab will be retiring in few years from now, having laid the foundations for the next phase of one of Saudi Arabia’s most successful businesses. He concludes by acknowledging the debt he owes to the acuity of ADC’s chairman Mohammad Yousuf Rafie and his the wisdom and the intuition of his colleague Saad Saab, who has been the backbone of ADC since he joined it as a roustabout. Saab will also be retiring soon, leaving an organisation in good hands and ready to take on the challenges presented by its second half century, and a new era in the Middle East oil phenomenon. Ali Hamid Al-Ghamdi will replace Saad Saab as MD for administration .He is a deeply experienced man. He brings with him more than 30 years of experience in the Oil & Gas drilling industry from Schlumberger and Saudi Aramco.

Company Information INDUSTRY

Oil and Gas HEADQUARTERS

Kingdom of Saudi Arabia FOUNDED

1964 EMPLOYEES

3,500 PRODUCTS/ SERVICES

Drilling services

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DANYA FOODS:

Reaping The Rewards

Written by: Sam Jermy Produced by: Craig Daniels

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The firm is enjoying considerable progress within the Middle East and Africa partly as a result of significant investment in operational capacity in the past twelve months

anya Foods is celebrating a staggering growth of 22 percent in terms of volume, thanks to the DKK 35 million of investment in training, systems, process optimisation, production and warehousing capacity and is now looking better than ever in the Middle East and North Africa region. Danish global dairy giant Arla Foods, producer of the unmistakable Lurpak butter, is the parent company of Danya Foods. This has seen particularly benefits for Danya as growth has also been partly driven by low prices in the countries where it sources its products

Manufacturing plant under construction

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and raw materials from, which is usually EU. Thomas Nordholt, Regional Supply Chain Director at Danya Foods, said: “Not only production and operational capacity, but with all of the investments we did in automation has allowed us to meet an ever-growing demand. We have been able to significantly reduce our production cost per kilo and distribution cost per kilo, and this have helped us finance other parts of the company that have driven the accelerated growth. This is very positive for us and our owners and will help drive our regional expansion in the years to come. This has also allowed us to compete in new markets which have helped grow our volumes further. “We have an increased requirement to employ local staff; it’s called Saudization and it is good for the national economy to do this, so we have embarked on the project and managed to place Saudis in roles where we once only had expats. More admin, procurement and warehousing roles are now filled by locals where we previously had to rely on expats. It means we have more stability as a business too, in terms of retention. “We have expanded our product range mainly with line expansions. We have also re-launched our main brand called Puck, in new packaging designs across many product ranges. It has been well received in the market so now we see new products that look as high-quality, nutritious and appealing as they actually are.”

Thomas Nordholt, Supply Chain Director at Danya Foods

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WE KNOW THE MARKET WANTS WHITE INGREDIENTS: Butter, SMP and Cheese. Burt Lewis, with offices in Dubai, Denmark, Canada and USA, is a global supplier of raw materials such as White Butter, White Cheddar, White Milk Powder, perfect for Jar and Triangle Cheese.

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Burt Lewis Europe, a partner of Burt Lewis USA, which was established in 1979, has now gone on to become one of the leading ingredient suppliers to many large and well known multinationals around the world. At Burt Lewis, we pride ourselves on delivering the highest quality dairy ingredients at the most competitive cost utilizing the most efficient supply chain. Burt Lewis provides a wide range of services to meet customer needs. These services range from logistics and documentation services to price risk management.

D A N YA F O O D S

Manufacturing plant under construction

“Not only production and operational capacity, but with all of the investments we did with automation it allowed us to meet an evergrowing demand” – Thomas Nordholt, Supply Chain Director

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with more environmentally friendly and energy efficient solutions to help cool the products. Cooling accounts for 35 percent of the energy consumption in a warehouse if you have chilled products in a hot climate such as Saudi Arabia. As well as adding reefer and freezer technology at many facilities, there has also been investment in acquiring larger distribution vehicles so Danya now has at its disposal multiple larger trucks able to carry containers. The company has also experienced success in Africa. Nordholt said: “We have experienced major growth and right now that is slowing slightly which is expected, but yes we have experienced growth in recent years in Africa too. This has been mainly West Africa; and also

FDF WORLD

Competitive edge Danya products are always based on raw materials that are mainly sourced from EU. So with such high quality ingredients Nordholt says the company uses fewer additives than competitors in every item, making for very clean and healthy products. But the firm has also ensured that those same products are kept in good condition at every stage of the production process. Last year it started on a project to build a new warehouse in Riyadh and that has now been constructed. Once fully operational, the warehouse space will be further optimised

Last year Danya Foods built a new warehouse in Riyadh, this year that warehouse is fully operational

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THE EXQUISITE FACTORY. “Now at last you can say “cheese!” with our packaging machines.”

With cheese like that, at last you can smile. And you can keep on smiling when you place your production in our hands. IMAs’ companies have been operating in the dairy products’ sector for years. In particular Corazza is the major global supplier of complete dosing and packaging lines for fresh and processed cheese. Take a seat in our factory, and taste the IMA solutions. We are sure you’ll find them EXQUISITE.

www.ima-it CORAZZA 1S.p.A. 5 8• corazza@corazza.it July 2015

D A N YA F O O D S we are building large manufacturing plants in Nigeria, which is going ahead really well and fast. “A warehouse is planned for opening around November this year and we are doing it in a 50/50 joint venture with a local partner; once completed there will be 200 people working there. We are also starting up several new plants in other African countries. “Across the board we have some smarter automation such as handheld scanners and overall warehouse management systems that will help the whole semi-automated warehouse. Due to our investments, we’ll have increased capacity and volume but the same number of staff. We have a good understanding where the market is going and we act proactively”

SUPPLIER PROFILE

FDF WORLD

New production and processing equipment

THE IMA GROUP

The IMA Group is market leader in the processing and packaging of pharmaceuticals, cosmetics, tea, coffee and food. The company Corazza belongs to IMA Group and is world leader in manufacturing and supplying complete range of equipment for dosing and packaging products having creamy and semi-hard consistency, such as processed, fresh cheese, butter, margarine, soft, pressed soup cubes, yeast and similar products. Corazza, founded in 1954, has reached the most important international markets, offering its technological know-how in the design and development of highly engineered machines.

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D A N YA F O O D S

SPX - OVER 100 YEARS IN THE DAIRY INDUSTRY SPX has established a new Spare Parts Distribution Centre in Europe to increase support to EMEA Food & Beverage customers. Same day shipment for selected APV & GS spare parts! With a focus on innovation and process development, we continue to expand our product portfolio in order to provide our customers with more choices and more solutions. From engineered to customised systems and components, SPX helps you process dairy products your way. Contact us today to find out how our newly launched solutions and industry leading brands can help you meet your most critical processing challenges. www.spx.com ft.enquiries@spx.com ft.dubai.sales@spx.com EVAPORATORS • DRYERS • HOMOGENIZERS • HEAT EXCHANGERS MIXERS • SEPERATORS • VALVES • PROCESS SYSTEMS • PUMPS

SPX has established a new Spare Parts Distribution Centre to increase support to EMEA Food & Beverage customers. Same day shipment for selected APV & GS spare parts!

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Acid & Rennet Casein

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Cheddar Cheese & Cagliata

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Whey Protein Concentrate & Isolate

Low Micro SMP & WMP

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D A N YA F O O D S Forecasting accuracy Nordholt believes the biggest reason Danya has had this success is because it has greater collaboration between sales/marketing and the supply chain. For example management knew they were going to launch a new mozzarella range with new packaging so research was done which revealed it would increase volumes by 20 percent. It was therefore easy to go back and see how much freezer space and distribution facilities the company needed, giving them ample time to go out and get the approvals for the investments and start to hire the drivers and warehouse staff, and plan activities accordingly. “It is a very smooth ride when sales, marketing and the supply chain aligns. At the start of the year we sat down and ensured we understood our values and set out our new plans and forecasts. We then took that and rolled it into supply chain and factored that into the equation when making capital investments for the coming year.” said Nordholt. “We make the necessary investments in production, distribution and warehousing based on the knowledge of where the different types of product are going to grow in volume and why. In this case, we are planning 2 years in advance to see where are business is going to grow or decrease and plan ahead. Collaboration is a big part of our process now: it is a key element and means we don’t keep surplus stock or tie up capital unnecessarily.”

FDF WORLD

“It is a very smooth ride when sales, marketing and the supply chain aligns. At the start of the year we sat down and ensured we understood our values and set out our new plans and forecasts” – Thomas Nordholt, Supply Chain Director at Danya Foods

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Product is kept in good condtion at every stage

‘It is a very smooth ride when sales, marketing and the supply chain aligns. At the start of the year we sat down and ensured we understood our values and set out our new plans and forecasts’

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Bright future Danya Foods now sees a new challenge on the horizon now it has exceeded its targets and achieved excellent growth; the balancing act between growth and investment. A main focus will be training and retaining those key employees that make the next step happen, which is exactly the same growth in the coming year. To hit those heights again the company needs to retain the key employees. Nordholt concluded: “We can and want to grow but now we are the level where almost all growth had to be preceded by investment in production and operational capacity. You could say it’s a balancing act deciding where to put the funds in order to get the

FDF WORLD

Company Information INDUSTRY

Food production HEADQUARTERS

Riyadh FOUNDED

1977 PRODUCTS/ SERVICES

Dairy foods

best ROI in the short to medium term. “We have a new business area which is food service; basically selling our products to large factories, food manufacturers and restaurant/hotel chains who buy our stock. Some of our products we sell in bulk to them, like 20kg blocks of cheese instead of 50 tubs. We sell our mozzarella blocks to pizza companies and even sell processed cheese to governmental institutions now. “From a supply chain and production perspective I like it because it gives me volume and I am able to reduce costs. Almost 4,000 tonnes of processed cheese has been sold to industrial customers and that volume helps me drive down the cost per kilo for all categories and extends the benefits to all customers.” w w w. a r l a . c o m

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LANES GROUP: Britainâ&#x20AC;&#x2122;s

Technical Drainage Leader

Combining the latest technology with years of crosssector experience, the group is responsible for some of the most important waste water contracts in the UK Written by: Nye Longman Produced by: James Pepper 165

LANES GROUP

anes Group has been entrusted with the impressive and daunting task of supplying Thames Water’s waste water infrastructure with repair and maintenance services. This contract makes the company solely responsible for the waste management of roughly 14 million homes or 25 percent of the UK’s population. Living up to this challenge has been a great honour for Lanes and its Utilities MD, Conrad Ashby; the work of the past 12 months stands as a testament to the efficacy of focusing on both customers and workforce simultaneously. Operations On the Thames contract alone, Lanes has more than 400 vehicles deployed, with around 270 equipped for specialist drainage applications; on an average day the company completes upwards of 1,000 jobs, as well as an annual average of 600 emergency daily callouts. Unbeknown to many, Thames Water’s area covers much of the South East, in and around the Thames Valley and Greater London which has some 140,000 kilometres of underground sewers and drains.

Lanes is a national drainage leader, with contracts from Aberdeen to Plymouth

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A national drainage leader Ashby highlighted that, alongside its utilities contracts, Lanes Group provides services for Vinci Facilities, Integral FM, Mitie Property Solutions and Network Rail, in addition to several other water authorities, national supermarkets and retail chains. Lanes Group’s Reline Division

ENERGY

takes on some of the most challenging sewer rehabilitation projects in the UK. Its rail division has a major contract with London Underground to provide maintenance and repair services for everything from bridges and structures to vegetation control and coin counters. Lanes Utilities has had to address what Ashby called: “A paradigm shift in the water industry, where we are seeing demanding customer challenges and the opening up of the market by the regulator OFWAT, which includes the prospect of increased competition from other companies.” In response to this, the company has rolled out investments in excess of £10 million to strengthen its specialist fleet; it also follows Kaizen principles to maintain its ISO:9001, 14001, 18001 and 22301 accreditations. Talent Management Ashby noted that playing a major part in the smooth running of the country’s capital city can be a challenging and potentially stressful responsibility for his teams. He said: “We travel roughly 6.5 million kilometres each year, so we’ve invested a lot of time and energy in making our employees’ lives easier.” Over the past year, Lanes has invested not only in its fleet but also over £900,000 to provide training, tools and equipment for its employees, alongside a significant investment in its staff wellbeing project. Ashby said: “We’ve put a lot of time and effort into understanding workplace frustrations

‘Lanes Group has shown that it can be a jack of all trades while mastering all of them: its dedicated focus on both the needs of customers, and its expanding workforce, has produced a balanced and powerful model for continued growth’

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Helping to keep your project on track. Whether you’re a developer, a main contractor or a subcontractor, you will be aware of the need to possess suitable insurance cover for your contracting projects. By choosing the Henderson Insurance Broking Group, you can be assured of the commitment of our highly experienced teams operating across the Construction and Utilities industries. Our specialist divisions can organise a number of contracting related covers such as Liability, Contract Works, Plant, Bonds and Risk Management through to general cover for your office. Call 0113 393 6362 to find out how your business can benefit from working in partnership with the Henderson Insurance Broking Group. Henderson Insurance Broking Group Trueman House, Capitol Park Leeds, LS27 0TS T: 0113 393 6300 E: info@hibl.co.uk Authorised and regulated by the Financial Conduct Authority.

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A CONTRACTOR WITH A DIFFERENCE

INSURANCE BROKING GROUP

FM CONWAY IS A LEADING INFRASTRUCTURE SERVICES COMPANY OPERATING IN TRANSPORTATION, THE BUILT ENVIRONMENT AND PUBLIC REALM. We have years of experience working with utilities, contractors and local authorities to map drains and sewers, record new assets, plan works and cleanse systems. Our vehicles have the latest technology to undertake complex projects, such as off-road surveys and specialist ‘no dig’ operations, as well as delivering exceptional quality in our routine works. We directly employ our own fully-trained staff to give us full control over the service we provide and, with our extensive fleet, we’ll be expanding on the one million gullies we clean each year.

For more information on our cleansing, surveying and drain waste recycling services: Please call 0844 880 6204, visit www.fmconway.co.uk or follow us on @FMConwayLtd

LANES GROUP

ENERGY

Cityflex in use, Slough - UK

and exploring the more subtle elements of health and safety, including stress management and developing personal resilience.” The company is serious about this attitude shift, already accruing 9,000 person hours of training in the past year. Ashby said: “We have brought in specific management capabilities to deliver 6 Sigma Black Belt support to help us drive our initiatives and continual improvement using incremental changes.” Lanes also incentivises its workforce: on top of a competitive salary, employees earn bonuses every time they successfully deliver excellent service, as evidenced by feedback from customers; in additon its top quarter of drivers are entered into a monthly prize draw. Underpinning its mutual dedication to its customers and

‘Lanes has profited from the manifold benefits that an often seemingly simple innovation can produce’

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employees is its simplified Essential Standards operational handbook, which has already won an award from Construction News for its innovative format of communication through illustrations; it has even been adopted by some of Lanes’ clients. Ashby also noted that Lanes is keen to actively support and develop its staff at all levels, which has enabled members to progress to senior management positions. Ashby said: “We have a bespoke management course for all front line managers. We put them through MSTS and IOSH training, as well as providing them with training from the Institute of Leadership and Management.” Competitive edge Lanes has profited from developing seemingly simple innovations and IT functionality. Its adoption of app-based technology has not only saved countless paper documents, but also saved time and effort, while enabling the business to remain transparent through the extensive use of photographic images. Ashby said: “We do roughly 320,000 jobs a year as part of our Thames contract, so instead of having a paper risk assessment our app records the risks and the mitigating actions undertaken, evidenced through the use of date and time stamped photographs.” Backing this up, he said: “We take over 4.5 million images every year in support of the company’s ongoing customer service and H&S measures. It’s an innovation

“We do roughly 320,000 jobs a year as part of our Thames Water contract, so instead of having a paper risk assessment we have an app which records risks mitigation and proves this with a photograph” – Conrad Ashby, Framework Director at Lanes Group

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LANES GROUP

ENERGY

Jetvac in operation

that has resulted in Lanes Utilities being selected, again, as a finalist in the 2015 Construction News Awards, being announced in June.” Efficiency is not a merely abstract concept for Lanes, which relies daily on the smooth running of its fleet of hundreds of vehicles, Ashby said: “We have invested in advanced vehicle tracking units which will help our engineers drive smarter through real time feedback on driving behaviours; since implementation we have seen an improvement of 15 percent in our fuel costs.” Ashby also noted how the company makes use of its diverse sector coverage to gain a broad competitive advantage. He said: “One of the beauties of a diverse customer and business base is that we have a lot of experiences that can be shared within the

‘Having been given the not so enviable task of removing London’s recent ‘fatberg,’ the company using its strong partnership with Thames Water in order to educate households on the correct disposal of fat, oils, and grease’

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LANES GROUP

Lanes has seen an improvement of 15 percent in fuel costs group; we learn from our experiences and improve through sharing best practice.” Corporate Responsibility Lanes Utilities often works with Thames Water to remove sewer ‘fatbergs’ (great masses of congealed fat and debris) and is now working to educate households and businesses on the correct grease disposal. Having hundreds of thousands of drainage jobs under its belt, Lanes is best placed in its sector to drive change in the industry, Ashby said: “Lanes cares; we always want to deliver for our clients and customers and we are not scared of trying things differently.” The company was one of the first in its space to implement ‘no dig’ solutions; using cured-inplace pipe (CIPP) techniques, Lanes can renovate a damaged drainage pipe without excavation 174

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ENERGY

by creating a new pipe within the existing one. Ashby explained: “Rather than excavating and cutting up someone’s garden or ripping up the highway, we have the technology to quickly offer our clients proactive solutions.” These liners refurbish the asset in a cost-effective and more carbon efficient way than pipe replacement. They also have an effective operational lifetime of nearly a century, which means that communities have utility solutions that are built to last. In 2015, this same spirit of innovation has led the Lanes Rail Division to perfect a vacuumation cleaning system that promises to revolutionise rail track drainage maintenance. Lanes Group has taken extensive measures to reduce its impact on communities and the environment. It has become the UK’s largest user of specialist recycler jet vacuumation tankers, which use less water and fuel. In May, Lanes Utilities became the first drainage contractor to deploy acoustic sensing technology to survey sewers, an innovation that promises to make sewers more efficient and reduce pollution. It is also a leader in its sector in using hybrid vehicles. Lanes Group has shown that it can be a jack of all trades while mastering all of them: its dedicated focus on both the needs of customers, including the 14 million it looks after for Thames Water, and its expanding workforce, has produced a balanced and powerful model for continued growth.

Company Information INDUSTRY

Energy HEADQUARTERS

Leeds FOUNDED

1992 EMPLOYEES

1208 REVENUE

£104m PRODUCTS/ SERVICES

Utility wastewater and drainage sector

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C & F GREEN ENERGY:

World-Class Wind Turbine Solutions Written by: Abigail Phillips Produced by: Richard Thomas

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C & F GREEN ENERGY

CFEG understands the importance of quality control, positive management and an allinclusive supply chain

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ince 2006 C&F Green Energy (CFGE) has been striving to find solutions to provide more powerful, yet safer, wind energy solutions for residential, commercial and agricultural applications. With a background rooted in precision manufacturing, C&F was well placed from the start to design innovative wind turbines that would combine unrivalled performance and power with clean aesthetics and reliability. With this in mind the company has assembled a world class team of industrial design experts in this field to deliver solutions based on innovation and engineering excellence. The group attributes its success to unrivalled levels of workmanship quality, streamlined manufacturing processes and continual product design and reliability improvement. Since its inception, the company has developed an innovative range of small to medium-sized

M A N U FA C T U R I N G

turbines that incorporate the same advanced technologies that are used in Mega-Watt sized machines. Leveraging its expertise in manufacturing and design, not to mention its global reach, C&F Green Energy is in a unique position in being able to offer this advanced technology at very competitive prices. “Our commitment to customer service and our confidence in our products are evident in the fact that all customer contracts will be directly with C&F Green Energy and all warranties will be carried by us,” explained Enda Meaney, C&F Quality Manager. “This includes the market leading warranty that is available for five years. “Our mission is to make C&F Green Energy the global leader in small and medium sized generation. We build what we firmly believe to be the best wind turbines in the world.”

Enda Meaney, Quality Manager

Continuous improvement C&F Green Energy’s mission statement

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C & F GREEN ENERGY

“Our mission is to make C&F Green Energy the global leader in small and medium sized generation. We build what we firmly believe to be the best wind turbines in the world” – Enda Meaney , Quality Manager

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M A N U FA C T U R I N G

demonstrates its overriding aim to become a world leading manufacturer of small to medium size wind turbines. In line with this vision, the company also strives to make wind energy affordable and accessible to everyone. “Whether you are an individual interested in harnessing wind power for your sole consumption or an investor interested in making profit from generation of power for general availability on the national grid, we have an affordable solution to satisfy that need,” said Meaney. “To compliment this strategy, our Quality Policy states that we will undertake to conduct our business in a manner which endeavours to protect our environment, the health and safety of our employees and to continuously improve the quality of our products and services to our customers.” Continuous improvement is critically important to C&F Green Energy, in fact they truly believe their commitment to quality underpins the entire operation. As Meaney explained: “My aim is to equip C&F Green Energy not just for the sustainment of high quality standards but to meet the demands of global business growth and the ever increasing customer expectations that come with an innovative and evolutionary industry such as the renewables wind energy sector, which we are currently leaders in.” In terms of business strategies, CFGE has leveraged on the well-established processes and methodologies used by the entire C&F

100KW Nacelle

60KW Dispatch

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“The most attractive aspect of working with CFGE is the cutting edge technology and the continuous demand for change and improvement” – Enda Meaney, Quality Manager

Production Line 1 (11-20KW)

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Group family of companies and facilities. “We a global footprint of businesses strategically married through mergers and acquisitions since our establishment as a tooling manufacturer in 1998. These businesses align well in terms of supply chain continuity and economy of scales in purchasing power and industry expertise,” said Meaney. People management CFGE understands that its quality goals are not achievable without a strong team of employees working behind the scenes. “The renewables energy sector is both a growing sector and a hugely sought after sector in terms of attracting highly skilled and valuable resources. This is an environment CFGE is enjoying at present as we equip our business to meet growth demands. The most attractive aspect of working with CFGE is the cutting

M A N U FA C T U R I N G

edge technology and the continuous demand for change and improvement,” said Meaney. “What you learn and experience in six months in C&F is equivalent to 18 months experience in most other industry sectors. This is due mainly to the fast evolving technology and the variety of exposures an employee has throughout their daily activities. We are a tight-knit community that depends on openness, cross-functional cooperation and an attitude to succeed. Behind every wind turbine is a slip stream of energised people.” CFGE use a combination of both owned and sub-contracted service and repair crews throughout Ireland and the UK, European and Global markets. This allows the business to quickly penetrate its customer base in the event of either routine service calls or breakdown and

50KW In Production

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Nacell Installation

support requirements. As Meaney highlighted, this does however also provide a challenge in terms of keeping crews up to speed on latest process and procedural advances. â&#x20AC;&#x153;To meet this challenge, and as we expand our crew base, we are currently embarked on a global crew re-training program which is being project managed in-house in Galway. Both current and new crew teams are being put through end-to-end training programs from tower and turbine installation, through service and maintenance, to electrical installations and commissioning, including health and safety and quality fundamental principles.

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Complementing this, we are developing a series of video based training aids that we can remotely distribute to all our crew members.â&#x20AC;? Supply chain management One of the companyâ&#x20AC;&#x2122;s USPs is the fact that it manages all aspects of the project in-house, making them 100 percent accountable and thus giving customers complete peace of mind. CFGE has a network of road crews available to transport turbines and tower structures to any site in Europe and beyond. In some cases, access to a customer site may be challenging and require specialised machinery to ensure an efficient installation, which often can be hampered by inclement weather conditions. Advance planning and knowledge of the local environment is critical in determining installation requirements and this is achieved thorough site surveying as part of the contract. Much emphasis is placed on the secure transportation of the product so that it reaches the customer site intact and free of damage. The installation process is carried out by teams of British, Irish and International crews. â&#x20AC;&#x153;These are teams of specialised installers from mechanical to electrical engineers, equipped and trained to build tower structures, install turbine nacelles, connect to electrical controllers and commission the installation in full for the customer. Key to providing a good quality service to our customer base is having crews geographically and strategically placed to

60KW turbine

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20KW Nacelles for Delivery

ensure prompt response times,” said Meaney. “One of the inherent benefits the C&F Group can offer its Green Energy subsidiary is the entity of self-sufficiency of material supply through its chain of metal and tooling businesses. Many of our parts, from raw steel to precision engineered parts come from within our own supply chain, giving us complete control over costs, quality and time,” he added. Technology A key strength of CFGE is the ability to produce innovative designs that ensure its products are at the cutting edge of the wind energy industry. The business is continuously producing new designs that will ensure CFGE has the best turbines and will remain as leaders in the market space. “This industry is all about efficiency of conversion of energy from one form (wind)

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to another (electricity) at the least set-up and operational expense possible,” says Meaney. “To achieve this, we are constantly innovating on design and quality. An example of this is a current initiative being project managed in Galway whereby we are conducting in-depth reliability studies and design of experiments (DOE) on our existing product ranges in order to improve long term reliability of mechanical parts and sub-assemblies, which in turn, will lead to overall turbine reliability improvement. We are in partnership with a leading reliability statistician to conduct these trials over the coming months which we hope will yield product improvement and also generate inhouse expertise in this specialised area.” “C&F Green Energy have designed a family of turbines, which gives us great scope in entering the global markets due to our unique design and product range. We are the only global wind turbine manufacture that offers this option in the small to medium product range. With these choices of turbine sizes, this gives us and our customers the possibilities to tailor their development” said Paul Fitzpatrick, Global Business Development. CFGE is focused on developing innovative solutions for the world and realises that a mission this ambitious needs to be underpinned with good business practice. From continuous improvement to investment in technology, people management to a robust supply chain, CFEG is ensuring it is well placed to triumph now and in the future.

Company Information INDUSTRY

Renewable Energy HEADQUARTERS

Ireland FOUNDED

2006 EMPLOYEES

130 REVENUE

€139m (Turnover) PRODUCTS/ SERVICES

Production and distribution of wind turbines with manufacturing locations on 4 continents

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SOLVING MININ TOUGHEST CHALL

Joy Global partner directly with their customers to develo systems that lower their total cost of ownership while safe Written by: Abigail Phillips Produced by: James Pepper

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JOY GLOBAL

J Worcester (UK)

oy Global knows a thing or two about mining and without them, mining itself would look fundamentally different. From the humble beginnings of Joe Joy, Henry Harnischfeger and Alonzo Pawling; today Joy Global stands as the leading supplier of advanced equipment, systems and direct services for the mining industry. Trading on the New York Stock Exchange (NYSE) since 2011, the global corporation designs and manufactures equipment for both surface and underground mining, used for a variety of applications and minerals. Joy Global has a vision; to be a world-class service company delivering the most reliable and productive products, systems and solutions that solve miningâ&#x20AC;&#x2122;s toughest challenges. In order to achieve this, facilities and equipment service centres span six continents and more than twenty

Joy Continous Miner in operation

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Direct Service

distinct countries. Their mission is clear. Joy Global want to partner directly with customers to enable them to achieve zero harm, the highest production and the lowest lifecycle cost for their mining operations, while making every customer a reference. They are grounded in experience. Grounded in performance and innovation. Grounded in their values; Integrity, Respect, Diversity, Teamwork, Reliability and Performance. Partnering for performance Joy Global has the world’s largest direct service network, putting the customer at the heart of its operations. An unwavering focus on the customer drives everything they do. Joy

‘Joy Global want to partner directly with customers to enable them to achieve zero harm, the highest production and the lowest lifecycle cost for their mining operations, while making every customer a reference’

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JOY GLOBAL

MINING

Global has the competitive advantage, and at the heart of it is a direct service model that emphasises collaboration, safety and efficiency. The business takes its service to the customer, opening Joy Global Service Centres within close proximity. Eurasia President, Dean Thornewell said: â&#x20AC;&#x153;We believe that Joy Global employees offer our customers the best service and level of technical expertise. With this in mind we open Service Centres across the globe to be on hand. We wholly believe in working directly with our customers to help them overcome their toughest mining challenges. This approach is our USP and makes us quite unique.â&#x20AC;? Building with industry challenges in mind By working alongside their customers, Joy Global is well positioned to understand the

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THIELE GMBH & CO. KG

THIELE GmbH & Co. KG is an innovative manufacturer of chains and forgings and a world market leader in the segment related to chain systems in conveyor and hoisting equipment for coal mining. THIELE products are used all over the world for mining mineral raw materials, for lifting, moving and securing loads and for conveying bulk materials. Whether in mining raw materials, whether in power stations, whether in base materials factories producing cement or fertilizer, whether lifting and securing valuable machines or using wind power, THIELE is always a reliable partner for safe, efficient processes. Hence production at THIELE is subject to very stringent quality control.

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challenges that they face on a daily basis. “We take pride in working closely with our customers, understanding their issues, realising industry trends and then providing solutions,” notes Thornewell. Not only does this ensure that Joy Global has a first-class relationship with the mining industry, it also allows them to change the game in mining through new products, services and technical development. “As our customers move into new markets, we move with them,” Thornewell points out. “Mineral extraction around the world is becoming more complex every day. We provide equipment and technology solutions to market that help with extraction in more difficult ore bodies and locations.” “We monitor the markets, our customers and their plans for future growth and development. We look at key indicators of the world economy and shape our business accordingly. We are agile and respond to challenges easily and quickly. The equipment and technology we develop is adaptable to the ever changing industry.” Creating growth Performance and new product development has been critical to Joy Global’s long term growth and success, and the company has always been on the leading edge of innovation. Thanks to Joy Global, today’s mines are more sustainable and more automated than ever. Providing smart, innovative products and systems, Joy Global is moving the needle in

Dean Thornewell

“We take pride in working closely with our customers, understanding their issues, realising industry trends and then providing solutions” – Dean Thornewell , Eurasia President at Joy Global

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mining productivity with safety improvements, production increases and lower costs. As Thornewell explains, “We are very focused on helping our customer have complete automation of the mining process. Our R&D team is constantly working towards taking people out of harm’s way and using automation to operate the equipment.” An automated mining process allows for performance optimisation, health monitoring and 24/7 support. JoySmart Services uses advanced technology and prognostics to deliver technical insight and automation services to the mining sector. Joy Global continually implement programs and initiatives to create a more efficient and effective The P&H L1850 wheel loader

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JOY GLOBAL business. These are not just programs; they are part of their core values and therefore represent the focus on things that matter.

The Joy 12HM31 continuous miner

Taking Joy Global to the next level Continuous improvement is critical to business development and delivering world-class service is built upon world-class processes and metrics. Joy Global Business System (JBS) is an in-house operational excellence strategy which drives productivity through a lean initiative that simplifies the process, eliminates waste, leverages automation and keeps people out of harm’s way. “It drives factory performance all round the

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MINING

Joy continuous haulage (FCT) in operation

world,” continues Thornewell. “We have made significant improvements at factories across the globe by investing in continuous improvement. Zero harm mentality “Safety is our number one priority,” states Thornewell. “Our aim is to achieve zero harm, even down to the smallest cut finger. Every day that we have zero harm is a success. We also believe that safety is our customers’ number one priority – the need for safety truly underpins the industry as a whole.” We have all heard of 5S. But Joy Global has its own 6S measuring system, which includes ‘safety’ as number one on the list. “We have an entire department dedicated to health and safety, which benchmarks performance

“We have made significant improvements at factories across the globe by investing in continuous improvement.” – Dean Thornewell

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Joy DT Series Trucks

across the globe. At the end of each year the best performing factories are recognised by the President of the business, so it’s very much part of our corporate culture.”

Joy Global will be ready to “solve mining’s toughest challenges”

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People management Joy Global employs in excess of 14,000 people worldwide and has a robust talent development program in place. There is not only substantial in-house development, but also external affiliations with universities and colleges. “We identify people early on as potential talent; senior leaders, technical innovators, and people

MINING

Company Information INDUSTRY

Mining HEADQUARTERS

Wisconsin FOUNDED

1884 EMPLOYEES

14,000 REVENUE

$4 Billion

leaders. We have very structured reviews of people, for example a series of criteria that we measure people against. We very much believe in developing people within the business.” Joy Global has achieved huge success over the years by focusing on its people, innovation and continuous improvement, but most importantly it realises that its customers are central to the business, holding it together and driving it forward. As long as mining continues to pose the tough challenges, Joy Global will be ready to “solve mining’s toughest challenges”.

PRODUCTS/ SERVICES

Mining equipment

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KUNOOZ OMAN HOLDINGS JOURNEY TO AN IPO Written by: Nye Longman Produced by: Craig Daniels

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The companies of the Al Rawas family were consolidated into Kunooz Oman Holdings in 2014; the group is hoping to extend its growth with a listing on the Muscat Securities Exchange

he consolidated companies of the Al Rawas family, with a total revenue of $ 43 million in 2014, are strategically positioned within the Sultanate of Oman, at the crossroads of some of the fastest growing economies in Asia, Africa and Europe. Oman has an international reputation for stability in its political, economic and social systems and has created strong infrastructure, healthcare, communication and trade networks, as well as an advanced transportation system off the back of its flourishing oil-based economy. Journey to an IPO The Government of Oman has committed to diversifying its economy in order to reduce its reliance on oil exports; the mining and downstream capabilities of Kunooz, therefore, are set to play central role in this strategy. It is with this

Crusher at Mihwar Al Wifaq in Muscat

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Key Personnel Quarrying operations at Al Rawas Marble in Ibri, Northern Oman

bright future in mind that Kunooz Oman is being positioned for an Initial Public Offering (IPO) on the Muscat Stock Exchange. CFO Krishna Karikurchi said: “Kunooz Oman has spent the last two years preparing itself for the listing, restructuring and professionalising itself into a consolidated entity.” The group has recently benefited from relaxation of 15 percent off its initial share capital floating by the Capital Market Authority (CMA) which has taken the required capital from 40 percent down to 25 percent; the Oman Arab Bank has recently agreed to become the venture’s investment bank. As part of its IPO, the company enlisted the unique talents of Dean Cunningham as the group CEO. He was chosen for his distinct skill set that, since his appointment last year, has enabled the group to take significant steps to reach this

Krishna Karikurchi CFO Krishna Karikurchi is a Chartered Accountant with extensive experience in corporate finance and initial public offers, as well as restructuring business units, corporate governance and company law. Prior to his current position he was Group Chief Financial Officer of Al Rawas Holding and its group companies, wherein he played an important role in the restructuring the business.

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“We have a blend of mature and young energetic skills, driving the day to day operations across the group, our focus is about team work maximising our inputs” – Dean Cunningham, CEO

critical stage. Having completed a BSc in Mining Engineering, Cunningham accrued extensive experience in corporate finance, marketing, project management, private equity and mining and, overseeing IPO listings for several companies with a similar remit to Kunooz. He said: “I came in October last year to professionalise the business, take it to listing, to implement financial and policy structures and realise its human resources. I have also been tasked with growing the business both locally and internationally into a global mining, processing and value added business: “We have a blend of mature and young energetic skills, driving the day to day operations across the group, our focus is about team work maximising our inputs, endeavouring daily to de-

Al Rawas Gypsum Mining Operations Salalah

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Key Personnel

Safety Meeting at Mihwar Al Wifaq in Muscat.

risk our day to day decisions making to enhance the returns to all stakeholdersâ&#x20AC;? The Kunooz Group The company logo has been designed to be truly reflective of the group. Seamlessly blended together in the design is the Kunooz name (which is Arabic for treasure) housed within a lattice of five shades of green to represent the five divisions of the group. Al Rawas Mining The Al Rawas Mining Company is located in Salalah, the southernmost region of Oman and has a mining lease to extract 90 percent pure Gypsum. It commenced works in 2010 and since then has established a crushing and screening

Dean Cunningham CEO Dean Cunningham has a unique combination of skills and experiences which made him an ideal candidate for managing Kunooz Oman Holdings through the crucial stages of its IPO. Dean holds a BSc in Mining Engineering and has worked in corporate finance, marketing, project management, private equity and mining.

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MINING

plant with a 2 million tonne annual capacity. Currently AMC supplies gypsum to India, Africa, Qatar, UAE, Bangladesh and Japan. Mihwar Al Wifaq Mihwar Al Wifaq is a well-known mining company active in the Muscat area with a high-quality plant producing a range of Gabbro aggregates and crushed sand for the construction industry. It is strategically located in Wilayat Seeb to make use of the prime quality natural raw material available in Al Jifnayn.

The Kunooz Group is made up of seven companies

Majan Mining Company Established in 2006 in Salalah, Majan Mining mines and processes limestone for the global steelmaking industry and also supplies a number of clients across India. Its competitive advantage is not only the high quality and close proximity to its customers but the reactivity of the material, which enables lower tonnages consumption in the steel manufacturing process which has a net cost saving impact for its customers. Al Rawas Marble Al Rawas Marble and Granite (RMG) Co. LLC was established in 2007 to offer the finest Omani marble to both the local and international markets. Products exported by RMG globally can be seen adorning numerous architectural marvels across South Korea, Europe, Australia and the UAE. The company maintains a substantial stock of solid

Al Rawas Gypsum Mining Operations Salalah.

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“People are encouraged to challenge complacency at all levels in the business; to take ownership, innovate, and think outside of the box” – Dean Cunningham, CEO

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July 2015

blocks, slabs and tiles to ensure that each client’s demand is methodically met regardless of scale and destination. Salalah Readymix Salalah Readymix is a well-established leader in the local ready-mix concrete industry. Since 2006, the company has had a successful track record of completing numerous high profile projects while adhering to global quality standards. The company currently has 3 batching plants including a fleet of transit mixers, concrete pumps, trailers and cement bulkers. Carmeuse Majan Carmeuse Majan LLC is a joint venture company led by the Belgium-based Carmeuse Holdings SA. The company is located in the Salalah Free Zone and has a single kiln with capacity to expand to an additional seven, each with an annual lime capacity of 125,000 tons per year. The majority of the plant’s output targets the Indian market, where demand for lime products is expected to rise sharply. The Dhofar region’s close proximity to the Indian and Middle Eastern markets, coupled with the presence the port at Salalah, are key factors underlying the success of the company. Al Rawas Transport, Machinery Hiring and Trading Al Rawas Transport, Machinery Hiring and Trading LLC (ART) meets all the transportation

MINING

Weekly schedule maintenance at Mihwar Al Wifaq in Muscat.

requirements within the Group. Currently ART is catering for the complete requirement for Al Rawas Mining moving around 2.2 mtpa to 2.4 mtpa of Gypsum between its mines and the port of Salalah. In addition, it also caters for Salalah Mills, moving cargo over 1000 kilometres between Salalah and Muscat. Cunningham commented that, despite often differing remits, the group was able to maintain an innovative spirit, he said: “People are encouraged to challenge complacency at all levels in the business; to take ownership, innovate, and think outside the box. It’s this creativeness, as well as a sense of being part of a company that will drive successes that give us our competitive advantage as we step into the global market.”

Computerized batch plant controls at Salalah Readymix.

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KUNOOZ OMAN HOLDINGS SAOC

Loading Gypsum at Al Rawas Mining into AL Rawas Transport vehicles destined for the Port of Salalah.

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Taking on the world While the companies that make up the Kunooz have all had to make changes in order to meet the stringent requirements of the IPO, the group is already well positioned to compete at a global level. Having a base in Muscat and regional office in Salalah close to the local Free Zone and the Deep Water Port provides Kunooz Oman with access to the coastlines of Asia and East Africa, in addition to the other GCC countries. The country also has over 1,700 kilometres of coastline which opens up trade with the Middle East, India, and beyond. Over $2 trillion worth of goods passes through the Salalah Free Zone each year with Kunooz Oman subsidiaries and associates contributing a significant amount of total exports through the bulk terminal in Salalah Deep Water Port. Kunooz Oman has a strategic advantage with

MINING

Company Information INDUSTRY

Mining HEADQUARTERS

Muscat FOUNDED

2014

direct access to the GCC and potential tax free incentives coupled with lower energy costs and tax incentives and financial freedom to set its eyes not only on other territories but also firmly on the future within Oman. Cunningham attributes the successful build up in the IPO process as being due to the forward thinking and positive attitude of the Al Rawas family, he said: â&#x20AC;&#x153;They have always looked to add value to Oman through their historical investments; they want to use Kunooz Oman as growth platform, which is why they have spared no costs and have brought in a professional team to allow this to succeed.â&#x20AC;? It is therefore evident from its recent proactive approach that Kunooz has succeeded through a combination of its dedication to the success of Oman and its shrewd foresight to bring its business operations into the 21st century.

EMPLOYEES

657 REVENUE

$43 million (2014) PRODUCTS/ SERVICES

Mining, Logistics, Manufacturing.

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HAFILAT: Under The Bonnet Of A Regional Powerhouse

The UAE-based bus manufacturer has driven world class production methods and is capitalizing on this through a substantial tactical expansion Written by: Nye Longman Produced by: Mark Atkinson

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afilat Industry maintains its position as a leading bus manufacturer in the Middle East through its unfaltering commitment to new technology and ideas; with a turnover last year of just over $100 million, the company certainly has a lot to be confident about. Shrugging off complacency, Hafilat is capitalizing on its strategic position with several major investments, maintaining its core operational formula and crucial partnership with international partners. Operations Hafilat’s factory in Mussafah, Abu Dhabi has the capacity to produce up to 300 buses annually; products from this facility have been approved by all the major Transportation Authorities in the region. Hafilats’ factory is equipped to build on

Hafilat to successfully win a bid to supply Cairo’s Transport Authority with 300 buses as part of an initiative to reduce congestion in Egypt’s capital

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Corporate video for Hafilat Industry

top of major chassis brands, including Iveco, MAN, Mercedes Benz, Scania and Volvo. CEO Iyad Al Ansari highlighted that modern principles underpinned the entire manufacturing operation, he said: “At Hafilat we follow the world-class operational standards of our partner, Volgren Australia. Through our ongoing commitment to our ISO 9001 certification, we use Kaizan principles to run an efficient factory.” It is this reputation that enabled Hafilat to successfully win a bid to supply Cairo’s Transport Authority with 300 buses as part of an initiative to reduce congestion in Egypt’s capital; it has been estimated that upwards of 600,000 people could use these services annually. Alongside manufacturing, the facility also

ISO 9001 Hafilat uses the Kaizan principles in its commitment to run an ISO certified efficient factory

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• Over 60 years experience of producing buses • First company in China as the partner of MAN • Over 200000 units bus running on the different street around the world; • Products powered by Mercedes Benz power train, MAN and Cummins

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H A F I L AT I N D U S T R Y

“The flexibility of our facility really sets us apart; because we don’t mass produce and don’t depend on an economy of scale, we can service the specific needs of a customer”

Finance Awareness bus

Ambulance bus

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contains the company’s Customisation and Refurbishment divisions, which can process an average of roughly 250 vehicles annually. Al Ansari explained that the Customization division engaged in some interesting bus conversions, using its bus designs as a basis for an ambulance, a library, a bank, and even a courthouse. Al Ansari explained one of the most interesting applications of his company’s capabilities: “We are engaged in upgrading taxis in Abu Dhabi to look like traditional London black cabs. We were awarded the contract to support the Abu Dhabi Department of Transport’s pilot project to convert 300 vehicles.”

M A N U FA C T U R I N G

Competitive Advantage Al Ansari himself asked: “Why is there only one Bus Company like us in the whole of the GCC?” The answers which uncover Hafilat’s competitive advantage extend far beyond the simple fact that they are the only manufacturer in the region to use aluminum. He noted the crucial importance that partnerships have played in the company: “Typically it is difficult to get a license to do what we do in the Middle East but through our partnership with international suppliers we have had all the experience and professional contacts on hand.” Not only has this partnership Finance Awareness bus

Judicial bus

Ambulance bus

Judicial bus

Iyad Al Ansari, CEO at Hafilat Industry

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Efficient and Reliable on the Road The Middle East Drives With Voith DIWA Voith has fitted over 10,000 city buses in the Middle East with the DIWA automatic transmission. And the number keeps growing continuously.DIWA means economy as a result of superior technology. DIWA automatic transmissions are ideal for applications in all city and interurban buses.

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effectively enabled Hafilat to set up in a challenging market, it has also given the company access to world-leading bus chassis designs. Furthermore, perhaps in recognition of its own uniqueness in the area, Hafilat is keen to explore new niches in search of new growth and opportunities to deliver quality to its company. There was a marked absence of VIP bus manufacturers in the region and demand was particularly high due to cultural reasons; Hafilat had the foresight to see that, combined, these factors presented the company with an opportunity to: “Find a real niche. Markets such as Europe provide a lot for VIPs but not much in the way of buses; customers find ours no less comfy than a Rolls Royce or a Jaguar.” Another aspect of the business that enables

SUPPLIER PROFILE

Bespoke interior for a VIP bus

VOITH MIDDLE EAST FZE

Voith Turbo, a group division of Voith GmbH, is one of the leading suppliers of technologies and services in the transport and automotive market. We develop reliable, resource-sparing, low-emission products and therefore make an important contribution to safety, efficiency and climate-friendliness. Voith Middle East FZE – one of the company’s global „Centers of Competence“ - supports and services its customers within Middle East & Africa region with highly trained professional sales and service engineers. Aftermarket services, such as health checks & overhauling, monitoring DIWA transmissions via SmartNet, retrofits & modernizations are conducted at Voith’s state-of-the-art workshop located in Technopark-Jebel Ali, Dubai.

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The Leading Transmission Around The Corner

And Around The World All around the world, fleets, cities and passengers rely on Allison Automatics to safely and reliably keep their buses on the road. Our proven reliability has made us the global leader in bus transmission technology. Allison has the widest selection of automatic transmission models for buses and is offered by more bus manufacturers around the world than anyone else. Allison fully automatic transmissions deliver smooth operation, lower cost of ownership and thanks to FuelSense® technology, improved fuel economy. The world depends on Allison. Shouldn’t you? allisontransmission.com

Designing and building first class platform lift devices and SST marine equipment since 1997

www.tenderlift.com Tel: +49 (0) 251 70 39 79 07 Fax: +49 (0) 251 70 39 79 06 E-mail: info@h-btechnics.com

M A N U FA C T U R I N G

The build stages of the Hafilat Industry’s Grenda Buses

it to successfully compete is its bespoke manufacturing process; Al Ansari said: “The flexibility of our facility really sets us apart; because we don’t mass produce and don’t depend on an economy of scale, we can service the specific needs of a customer. We can even alter buses to the specific requirements of the client; we have a high customization capability that isn’t available from other competitors” Hafilat has also taken serious steps towards reducing its impact on the environment and is working towards being certified with the relevant ISO accreditations. The company is actively adapting its bus designs in order to reach this goal. Perhaps the best example of this is the

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H A F I L AT I N D U S T R Y

Completed fleet of Hafilat Industry’s Grenda Buses

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Hafilat’s factory in Mussafah, Abu Dhabi has the capacity to produce up to 300 buses annually

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use of lightweight materials; aside from pioneering lightweight aluminium chassis, the company also incorporates polygraphites, ABS and acrylics into its new buses. The net effect of this is that the vehicles are not only lighter and easier to manoeuvre, but also saves a significant amount of energy. Furthermore, Hafilat has left no stone unturned in its search for sustainability which is evidenced by its use of long lasting LED bus lights, in addition to Tyre Safe tyre technology, which endows its vehicles with a safe ‘run on flat’ capability, reducing the incidence of breakdown callouts and stoppage time. The

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company has even begun to roll out pneumatic tools in order to reduce its power demand, which shows that no measure is too small if it results in savings and increased efficiency.

Company Information INDUSTRY

Automotive

Expansion Instead of staying put in its comfortable position as a currently region-leading bus manufacturer, Hafilat has taken responsibility for its own future and is making significant investments to this end. Al Ansari said: “Our first project is expanding our line in Kuwait as part of a joint venture; we will be spending roughly $20 million.” He added: “The second is building a new hangar to extend our capabilities in Abu Dhabi, which will be used for fatigue testing. The center will be equipped with latest vibration monitoring and dynamics equipment that can test everything from suspension, brakes and vibration; this will come to about $6.5 million.” In many ways Hafilat has proven that what seems nigh on in possible can, in fact, be achieved with the right strategy. Building a business centered on the niche interests of a variety of important clients has given the company a watertight base from which to expand these capabilities even further. What is clear from its past, present and future is that, as long as the highest attention is paid to meeting the often oscillating needs of the customer, the business will be sure to succeed.

HEADQUARTERS

Abu Dhabi FOUNDED

2006 EMPLOYEES

+245 REVENUE

$100 million (2014) PRODUCTS/ SERVICES

Bus Manufacturing; bus repair; bus conversions

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APL Logistics

The Future Of 3Pl Supply Chain Management

Written by: Nye Longman Produced by: Dennis Morales

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APL LOGISTICS

Through its unfaltering dedication and innovative approach to its customers, APL Logistics has secured a dominant position in the Middle East for many years to come

PL Logistics, heading up its US$1.659 billion revenues for 2014, is proving that investment and tactical expansion are possible even for an asset-light third party logistics (3PL) company. Focusing its core philosophy around every aspect of customer needs has provided the company with much fertile ground for innovation in the Middle East and Africa; it has become a source of well-deserved self-confidence. It is this success that enticed Kintetsu World Express to acquire APL Logistics from its owner Neptune Orient Lines (NOL): while the 3PL will be able to retain its trusted brand, the acquisition will give the company more room for investment and expansion in the future. Operations General Manager Muhammad Azfar Khan explained the remit of the Middle Eastern Division through an apt example, he said: “You are at the Dubai Mall and want to buy a shirt; you look at the tag and it says ‘Made in Vietnam.’ Most of us do not understand the complexity of the operations on getting the shirt to that shelf in the store. We manage the movement of that product from one end to another.” He added: “Customers want to know where their products are in the supply chain at any given time and exactly how many.” These end-to-end solutions cover APL Logistics’ four key verticals: Automotive; Retail; Consumer, and Industrials. The company

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provides clients from these sectors with customised, technological services, as well as supply chain engineering and associated services. As Khan put it: “Our goal is to be an established player in each sector. We want customers from each vertical to think of APL Logistics before anyone else.” APL Logistics’ Middle East and Africa division covers a total of 14 strategically important countries across the region, which has been achieved either through operating directly or through long term partnerships. The 3PL has direct operations through its company offices in United Arab Emirates (UAE), Bahrain, Saudi Arabia and Egypt. Through its partnerships, APL Logistics extends its reach across the

‘APL Logistics’ Middle East and Africa division covers a total of 14 strategically important countries across the region, which has been achieved either through operating directly or through long term partnerships’

APL Logistics Warehouse

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APL LOGISTICS

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APL LOGISTICS

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two continents, with offices in Kuwait, Iraq, Jordan, Oman, Kenya, Tanzania, South Africa, Mauritius, Madagascar, and Ethiopia. Its Middle Eastern operations consist of seven warehouses and tens of thousands of pallet positions alone, which come to well over 65,000 pallet positions in UAE alone. As one might expect from working with a globally effective supply chain solutions provider, APL Logistics’ customers and partners find themselves very well connected in Africa and the Middle East; prior experience in other markets has been crucial to succeeding, in Africa especially. Khan did note that this experience was usually supplemented with fresh, innovative thinking from his team, he said: “No solution is the same, no geography is the same, no market, no customer;

SUPPLIER PROFILE

APL Logistics Transport Truck

PRIME LINK

Land transport plays a vital role in regional economies. For more than 35 years Prime Link has enabled both multinational and local companies to focus on their core businesses whilst entrusting their logistics to a proven expert. As specialists in inland transport solutions throughout the UAE and GCC we handle everything from container reefers to project logistics, oversized shipments, chemical and hazardous goods as well as general cargo. Our specialists understand your business and its unique logistics demands, positioning us as your preferred supply chain partner and allowing us to offer you tailor-made logistics solutions.

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APL LOGISTICS there often has to be a lot of tailoring before we can begin to replicate processes for different regions. This is something that we regularly achieve because we evolve with our customers.â&#x20AC;?

AutoLinx-Innovative rail-based solution in India

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Technology For APL Logistics, consistent dedication to its customers does not mean that the company simply follows the lead of its clients; it is proactively seeking technological solutions to meet current and future needs. Its recent implementation of a multi-million Logistics Super Suite (LSS) supply chain management system reflects its customer-centered focus; Khan

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commented: “Customers have a more detailed, user friendly interface; they can see what we see.” APL also provides its customers with a Visual Technology Suite; a platform that builds on the company’s customer focus through offering a bespoke, transparent approach to supply chain monitoring. The Suite provides users with three levels of functionality: business intelligence; analytics; and operational tools. Khan explained: “Visual Operations allows customers to view their supply chain in real time and Visual Analytics provides them with a dynamic graphical interface to access historical data. Visual Intelligence offers an in-depth review of the entire supply chain to identify gaps that may not be readily apparent with less robust tools. For example, APL Logistics can conduct a deep dive review of ERP (Enterprise Resource Planning) data to unearth inefficiencies origin or destination DC processing times that would allow for greater sales.” The company is also planning to launch a new global, supply chain, event monitoring tool that will again demonstrate its leadership in technology and innovation. For example, “A head of supply chain for a global retailer finds out that there is a development in South East Asia; before they go into the morning meeting with the CEO and they will want to know how many shipments are impacted. “They can log into the system and see their activity in that port and see what the alternate solutions are: when the cargo is due to leave and

““No solution is the same, no geography is the same, no market, no customer” –M uhammad Azfar Khan, General Manager

5,600 Number of employees working fro APL Logistics

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APL LOGISTICS

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APL Logistics Warehouse

what could impact cost: all these things are in real time and can be changed within minutes. It gives customers a big picture of their supply chains, but also allows them to drill down to the small details.â&#x20AC;? He also noted that the company was keen to embrace mobile technology as clients begin to demand instantly accessible information: â&#x20AC;&#x153;Customers can download an app on Google Play or App Store and track the shipping progress of their products at any given time.â&#x20AC;? This feature therefore gives customers APL Logistics unprecedented access to supply chain mobile application information and enables managers to keep their finger on the pulse of their operations.

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APL LOGISTICS

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Talent Management Feeding back into its customer focused operations, APL Logistics’ approach to managing its talent pool seeks to instil and develop this aspect, Khan said: “We sincerely believe that if we take care of our staff, they in turn will be better placed take care of our customers.” It is this understanding of the symbiotic relationship between customers and staff that enables Khan and his management team to get the very best from its workforce. The company has its own online ‘Global Campus’ which makes available thousands of courses which cover everything from management to technical training. Khan noted that much of the resources supported the global trend of reducing environmental impact, he said: “We train our employees to eliminate waste through lean principles, as well as 6 Sigma; it all comes back to being an environmentally friendly organisation.” APL Logistics’ almost stubborn focus on catering for every aspect of its customers’ needs has enabled the company to construct a business plan that ensures each aspect of its operations is strongly geared to meeting this goal and maintaining the standards needed for success. Khan summed up the work of his company when he said: “We help customers in a way better than they themselves understand.”

Company Information INDUSTRY

Logistics & Supply Chain Management HEADQUARTERS

Dubai FOUNDED

2001 EMPLOYEES

5,600+ REVENUE

US$1.659 billion PRODUCTS/ SERVICES

A global provider of supply chain management solutions and services to the Automotive, Consumer, Industrials and Retail verticals

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