Business Chief Europe Magazine — December 2018

EUROPE EDITION DECEMBER 2018 europe.businesschief.com

EXCLUSIVE VIDEO

Digital disruption in the food and drink space

Technology transformation built on trust Spreadshirt: keeping it simple amid digital transformation City Focus

DUBLIN

BUILDING A TECH-SAVVY POWERHOUSE

TOP 10

BIGGEST CAR BRANDS IN EUROPE

Europe Edition EDITOR IN CHIEF

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WELCOME

W

elcome to the latest Europe edition of Business Chief!

As organisations the world over adopt new digital transformation strategies, the age-old finance industry is no different. Indeed, banking behemoth Santander is looking to utilise data on its journey to build trust and a quality customer experience.

“Technology is fundamental to banking and fundamental to what we do here.

Our aspiration is to be the best open digital bank so we need to stay abreast of the latest developments,” says Andy Pearson, who we sat down with alongside David Hayes for an exclusive video interview at Santander UK’s Milton Keynes office.

Meanwhile, we caught up with Preoday to find out how the business is digitally disrupting the food and drink space, and Olivia Minnock caught up with

Philip Rooke, CEO of European-turnedmultinational e-commerce company, Spreadshirt, to find out how businesses can remain productive by keeping things simple amid digital transformation.

For our city focus this month, we zoom in on Dublin and examine its journey to become a European technology hub. We’ve also brought you a list of the top 10 most popular car brands in the region.

Don’t forget to check out our company profiles on SMAG, Ansaldo and EMASA. Enjoy the issue!

Laura Mullan. laura.mullan@bizclikmedia.com

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

05

CONTENTS

12 Santander UK

igitally D disrupting the future of food ordering

32

44

54

DUBLIN City Focus

66 Spreadshirt

simplicity is key amid its digital transformation

Top 10

most popular car brands in Europe

CONTENTS

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DECEMBER 2018

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13

Technology transformation to remain a trusted partner WRIT TEN BY

OLIVIA MINNOCK PRODUCED BY

JA MES PEPPER

e uro pe .busi ne ssc hief. com

S A N TA N D E R

Banking behemoth Santander is undergoing a significant digital transformation in an evolving industry — Andy Pearson and David Hayes explain how this improves the lives of customers and communities 14

P

art of the global Santander Group, Santander UK has become a mainstay of British banking, and is

a familiar sight on the UK high street with over 1,000 branches and 50 corporate business centres across the nation. Now, the finance giant is undergoing a significant digital transformation in order to improve the lives of its customers and their communities.

Keen to explain this transformation and what it means to the bank were David Hayes, Chief Data Officer and Head of Data Services; and Andy Pearson, Managing Director of Santander UK Technology and Head of Digital Services. We caught up with the pair at Santander UK’s Milton Keynes office.

Known throughout the UK as a ‘new town’ built almost from scratch just 50 years ago, Milton Keynes has a reputation for cuttingDECEMBER 2018

FINTECH

edge modernity and so the location, as well as the office itself which has been revamped with colourful open spaces and well-lit breakout areas to promote collaboration between staff, truly reflects Santander’s personality as a decades-old institution which is still tech-driven and keenly keeps up with a changing sector and the rapid development of customer demands.

AN EVOLVING INDUSTRY Technology is disrupting every industry, and banking is no exception – but with organisations like Santander forming such an integral part of everyday life, present at key moments and within communities, this throws up unique challenges and opportunities in the sector.

Hayes comments on the recent transformation of the industry: “Data has become prominent for many reasons. Here in banking, there’s a whole world of data at our fingertips that can help us improve the lives of our customers.”

The entire industry is adapting to new technology, and indeed Hayes is an active participant in national organisation DataIQ Leaders as well as FIMA, an annual European conference on financial information management. Hayes also recently spoke to the Bank of England about how Santander leverages Big Data among other disruptive technologies. e uro pe .busi ne ssc hief. com

15

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“ Customers are used to using Instagram and Facebook — they’re used to instantaneous responses, so we need to be able to provide that.Our goal is to give a seamless, transparent journey to our customers” — Andy Pearson, Managing Director, Santander UK Technology

fundamental to banking and fundamental to what we do here. Our aspiration is to be the best open digital bank so we need to stay abreast of the latest developments and adapt to new ways of working, and be responsive to what the market and the customer needs.”

Pearson cites two key elements of technology transformation: “One is how we interact with our customers – and the changes in the way we’re building applications for mobile… we’re looking to digitise the way we interact with our customers.” However, the second element comes from within: “We also need the right data at the back end, and to explore that data to make

“They’re on a very similar journey to us,

sure those interactions are as mean-

and were keen to discuss some cultural

ingful and insightful for our customers

and principle things Santander is doing

as they can be.

that they can learn from. As a whole, the

“Data is fundamental to both of these

banking industry is really taking these

things, and as we move forward increas-

technologies on,” he adds.

ing our understanding of data through AI and machine learning is key,” he

A TECHNOLOGY FOCUSED INSTITUTION

adds. “Customers are used to using

Santander is taking these industry

Instagram and Facebook – they’re

changes in its stride, all the while

used to instantaneous responses, so

focusing on the most important

we need to be able to provide that. Our

aspect: customer experience. As

goal is to give a seamless, transparent

Pearson explains: “Technology is

journey to our customers.” e uro pe .busi ne ssc hief. com

19

S A N TA N D E R

ALL ABOUT THE DATA Gathering as much data as possible can help to improve this customer journey – but only if the right tools are in place to make use of it. “Data gives us the ability to analyse and understand how our customers interact with us, so we can design processes more effectively,” Pearson explains.

Within Santander too, it’s the data that makes the difference. “Big data has been absolutely transformational to us as an organisation. We partner with Cloudera to run our big data platform here in Santander UK. I was able 20

to understand through this collaboration that we don’t need to have silos of data going E X E C U T I V E P R OF IL E

Andy Pearson is the Managing Director of Santander UK Technology Engineering and Head of Digital Services.

After a successful career in consultancy, he joined Santander in 2006 and held senior roles in IT during Santander’s integration of other UK banks. In 2015 he took the lead of the engineering and delivery division which he brought into the digital era.

Now, Pearson is driving the transformation of Santander UK into an agile organisation bringing the business, operations and technology teams together under a domain-driven and service-driven model.

DECEMBER 2018

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21

forward – and if you get rid of silos, you

A TRUSTED MEMBER OF THE COMMUNITY

can truly transform the way people

“Communities are really important to

across the organisation behave.”

us in Santander,” Hayes emphases.

Santander’s use of data reflects its

“Santander has targets to make sure

commitment to its customers, as well as

everyone takes part in community work,

how integral a part the bank plays in

be that abroad or locally.” Indeed,

people’s everyday lives and in wider

recently a group from the Milton Keynes

communities. “The human element is

office returned from building classrooms

really key, particularly if you’re making

in Cambodia, whilst raising money for

difficult financial decisions,” says Hayes.

charities closer to home, Age UK and

“If you’re going to take out a mortgage

Barnardo’s, and last year Hayes himself

which is going to shape your life and your

spent some time helping a local food

spending for the next 25 years, you need

bank. “The motivation you get from

to trust and know that you can rely on us.”

making a real difference in your local e uro pe .busi ne ssc hief. com

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CLICK TO WATCH : ‘TRUST IN BANKING AT SANTANDER UK WITH CDO DAVID HAYES AND MD ANDY PEARSON’ 23 area is great, and is very healthy for an

in different parts of the organisation.”

organisation like Santander,” he adds.

This commitment to communities

In addition, Santander as a global

reflects the trust which Pearson is keen

organisation is busy strengthening its

to emphasise as integral to Santander.

commitment to the UK with a revamp

“Trust is a really strong foundation – secu-

of its Milton Keynes site and a brand-

rity is important because our customers

new £75mn office in Bootle, Liverpool,

have entrusted us with their information.

which is set to house 2,500 staff. “These

Security is fundamental for any bank,”

are historic sites for Alliance and

he explains. “We have a design principle

Leicester and Abbey National. The UK

of building security from the bottom up,

bank is one of the biggest elements

and going forward the banking industry

of the Santander group and we’re very

has the opportunity to build on that trust.

committed to our UK base,” Hayes

There are new value propositions we can

explains. “We’ve got 14mn active

explore here, and indeed for the wider

customers here and over 20,000 staff

banking industry, to provide identity e uro pe .busi ne ssc hief. com

S A N TA N D E R

management for the wider market.

“Customers are trusting us with their data.

We need to verify identities for a whole variety of regions – so there are opportunities for a bank as that trusted partner within the wider industry, and that’s something we need to look at going forward.”

This strong culture of trust, community and collaboration runs through every aspect of the business, not least the relationship Santander maintains with its vendors and partners, all of which have equally stringent principles on security and much more.

24

“When we work with a third party, we try to make sure we work in partnership with them,” he emphasises. “We spend a fair bit of time making sure they have the right fit for us, both culturally and architecturally.”

“Part of our methodology is to see, experiment, improve concepts, test and learn before we take a leap into particular technologies,” says Pearson. “Experimentation and building that collaborative relationship is important in understanding we’re working with the right partners moving forward.” Alongside Cloudera, a leading platform for Big Data and data science which enables Santander to become data driven, the bank works with a variety of carefully selected partners that have been critical for its ongoing digital transformation.

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This includes Microstrategy, which provides an enterprise wide platform for Business Intelligence (BI) and analytics; NuoDB, a cloud database for digital applications that can run on premise; Pivotal, a technology development company that provides platforms and tools enabling organisations to develop digital experiences; and Everis, a consultancy providing business and technology solutions for mission critical challenges.

THE RIGHT CULTURE Throughout the significant technology transformation Santander continues to undergo within a changing industry, its E X E C U T I V E P R OF IL E

David Hayes is Santander UK Chief Data Officer and Head of Data Services.

He is a recognised leader in the data industry with a long career in different areas of Santander UK. He has been driving the cultural change about data in Santander UK since he was appointed as CDO in 2014.

Hayes is passionate about what data can do to create value for customers and communities and thus is transforming data into a commonplace asset that everyone in Santander can use to help customers, always with the utmost awareness to governance, privacy and security.

e uro pe .busi ne ssc hief. com

25

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FINTECH

CLICK TO WATCH : ‘ANDY PEARSON, MANAGING DIRECTOR OF SANTANDER UK TALKS TECHNOLOGY TRANSFORMATION’ 27 people remain key, and managing the significant culture changes transforma-

brought together to drive change.”

Ensuring that these skills are in place

tion brings is vital. “It’s easy to underes-

across the organisation, Santander is

timate the amount of impact that cultural

also committed to diversity, such as

change has on the ability to make

ensuring a mix of men and women in the

technology change,” Hayes reflects.

tech-led organisation. “Gender diversity

“We run change management pro-

is very important to us,” says Pearson.

grammes and provide training, but of

“We were a founding signatory of the

course we have some way to go. We’re

HMRC Women in Finance Charter. We

on a journey. One thing we have to do

know that in the industry about 17-20%

is to articulate data as a profession;

of roles in technology are filled by women.

understand and appreciate the different

We’re fortunate that we have about 30%

elements of that. There are very

of our roles filled by women – however,

different skillsets that come in – soft

we currently only have 19% in senior

skills and technical skills need to be

roles, so our goal is to get that to 25% e uro pe .busi ne ssc hief. com

S A N TA N D E R

Cloud.

Containers.

Culture.

Transform your business, not just your IT.

FINTECH

29 by 2022. Role models are very important,” he adds. “We are participating in the Thirty Per Cent Coalition where we have role models, both men and women, to mentor women in our organisation, and women at Santander are being mentored by those from other organisations.”

TECHNOLOGIES OF THE FUTURE In addition to Big Data being fundamental to Santander’s offering and the care it can provide each and every customer and community, the bank will continue to explore other technologies such as artificial intelligence, machine learning e uro pe .busi ne ssc hief. com

S A N TA N D E R

capabilities and more. “Machine learning

learning. Now we have that core data

is a technology we’re exploring with some

platform, that’s going to allow us to

gusto at Santander,” says Hayes. “So far,

explore these new technologies

it’s been important from an operational

increasingly as we go forward.”

efficiency perspective. It’s going to change the way we work, the way we

community all keep a finger on the pulse

think, the decisions we go through, the

of new developments in the evolving

speed at which we interact with our

industry, with Open Banking set to take

customers and the offering we can give

centre stage. “That changes the game

them – but to embed machine learning

for us,” says Hayes. “Data is an asset

we need to make sure it’s built with great

and this allows competitors to build on

data engineering to sit behind it.”

assets we’ve got – when you then throw

Pearson adds: “Establishing our big 30

Hayes, Pearson and the Santander

in the capability to build AI or run machine

data ecosystem is key to us. We’re still

learning algorithms, the opportunity

early on in our journey of AI and machine

through technology is massive.”

CLICK TO WATCH : ‘DAVID HAYES, HEAD OF DATA AT SANTANDER UK TALKS CHANGE CULTURE MANAGEMENT’

DECEMBER 2018

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“ Here in banking,there’s a whole world of data at our fingertips that can help us improve the lives of our customers” — David Hayes, CDO, Santander

31 Pearson, too, cites Open Banking as one of “a whole series of regulatory activities that are changing the face of

customers are and how to be more relevant in their day-to-day activities.”

Overall, Hayes concludes that the

the banking industry”. He adds: “The

centuries-old banking industry will

making available of information about

fundamentally transform with Santander

customers to a whole range of new

at the fore. “I firmly believe that technol-

players is going to fundamentally change

ogy will completely change banking in

the way customers interact with financial

the next 20 years. The challenge for

organisations. There will be new players

the industry will be to embrace those

– and as a bank, we need to respond to

technologies – and the winners will be

that. We need to measure the experienc-

those who can do that in a way which is

es we build, and remain relevant for our

right for the customer.”

customers as we support their goals in life. Opening up banking data gives us opportunities to understand who our e uro pe .busi ne ssc hief. com

LEADERSHIP

32

igitally D disrupting the future of food ordering With the takeaway market skyrocketing and restaurants vying to win over customers, could a white-label technology platform help food and beverage players cut through the noise?

WRITTEN BY

L AUR A MULL AN

DECEMBER 2018

33

e uro pe .busi ne ssc hief. com

LEADERSHIP

W

hether you like a fiery vindaloo or a savoury American burger, the restaurant boom has meant that

whatever cuisine you fancy it won’t be too difficult to find. In fact, in the UK alone, around 740 new food and beverage units have opened annually since 2012 and, in the past year, this figure has nearly doubled to

1,333, according to the Local Data Company (LDC). This has offered more choice for consumers but it has also meant that restaurant owners have to be savvier than ever when jostling for sales. As the fight for 34

profit heats up and restaurant owners scramble to gain more footfall, could the help needed by the food and beverage industry be at our very fingertips?

The food delivery phenomenon has seen a meteoric rise over the past decade. With a few taps and swipes of their devices, consumers can have whatever meal they want at their doorstep in minutes. This business model has proven a perfect fit for today’s ‘on-demand economy’. Indeed, worldwide, the market for food delivery stands at €83bn (US$96.2bn), or 4% of food sold through restaurants and fast-food chains, according to McKinsey.

Digital ordering platform Preoday has carved a unique path in the takeaway sector, DECEMBER 2018

“Personalised marketing increases the odds of engagement and conversions by appealing to each individual’s likes and needs. Therefore, customers are more likely to go to you rather than the competition.”

— Matt Graywood, COO at Preoday 35

e uro pe .busi ne ssc hief. com

LEADERSHIP

“ That direct relationship could to pay, arrange delivery or collect food and beverages with just a few clicks of prove to be the a button. “For our clients, this software is business critical,” says Matt Graywood, differentiator for COO at Preoday. “Some of our customwhether they fail ers take over 30% of their income via or succeed” digital ordering on the Preoday platform.” providing mobile apps and web inter-

face platforms which allow customers

What gives this tool a competitive edge, though, is the fact that it is a white label technology, meaning that it can be fully branded and managed by the 36

restaurant or eatery, rather than a third party. “Our clients recognise that they need to build a relationship with the customer by themselves and so a white label product like Preoday is ideal because the consumer doesn’t see Preoday, they just see the brand,” explains Graywood.

“This means that the business is able to engage with the customer directly in terms of communication and promotions.

They also own the data from customers’ purchases which they can use to build their proposition and promotions around their customer base. That’s something they don’t get with aggregators in the market. They’ve got complete ownerDECEMBER 2018

— Matt Graywood, COO at Preoday

ship and that direct relationship could prove to be the differentiator for whether they fail or succeed.”

Online platforms are an effective way to drive digital footfall. Not only do they offer new revenue streams, but some can also take the customer experience to the next level. Preoday prides itself on creating a functional yet customtailored platform that can meet the niche and often demanding needs of today’s restaurants and eateries. “The differentiator is that this technology has extremely rich functionality but it’s also a very flexible platform,” observes Graywood. “It’s built like a robust transaction engine so it can cope with high-volume takeaway periods like lunchtime peaks during the week or the weekend.”

‘Flexible’ is a fitting word to describe the digital ordering platform. By offering configurable tools, business owners can use a management dashboard to have total control over processing, whe- ther they want to print out orders, send customised messages or even offer push notifications. The best part, according to Graywood, is that the platform also e uro pe .busi ne ssc hief. com

37

LEADERSHIP

provides rich analytics so that the sector can better understand their customers, whether that’s knowing how much a particular customer tends to spend or what their buying habits are.

“We carried out a survey in April which asked what the key challenges are that chains are facing today,” notes Graywood.

“The feedback we got was that 30% of respondents were using an aggregator but 70% prefer their customers to order directly because not only is it a better margin for them, but they also get to provide 38

the service they want directly to their customers and get to capture data regarding their customer’s purchasing habits.

“Through data analytics, they can start to build a profile of what that person’s ordering, who their best customers are, what they tend to order and how they can better target their promotions around that customer base and really start to engage with them,” he adds.

Large retailers have been capturing customer data for years but the restaurant sector has been slower in its uptake. This is undoubtedly untapped potential. By using highly specific data, Graywood notes that eateries can use analytics to target both loyal and infrequent custoDECEMBER 2018

39

mers alike by sending a personal message to encourage a return visit which could include a special discount applicable to their favourite item, for instance.

“It offers a new level of differentiation,” Graywood says. “You can use the data as you feel fit. You can focus a promotion right down to the individual which brings them that much closer to your brand. Personalised marketing increases the odds of engagement e uro pe .busi ne ssc hief. com

LEADERSHIP

and conversions by appealing to each individual’s likes and needs. Therefore, customers are more likely to go to you rather than the competition.”

With Greggs, the Aviva Stadium, the Royal Opera House and others all signing up to the service, Preoday’s customer list makes for impressive, diverse reading. The venue, location, and the customer may change but the fundamentals of good customer experience all remain the same. “The requirements of an event-based venue 40

may be different to that of a restaurant in terms of set-up but for pre-order, at the heart of it it’s very similar,” observes Graywood. “From a technology point of view, it’s a cloud-based platform whereby all our customers use the

‘In the UK alone, around 740 new food and beverage units have opened annually since 2012 and, in the past year, this figure has nearly doubled to 1,333, according to the Local Data Company’

same code base, so everybody’s using the same platform. This means that we can build everything once and provide it to all customers. Then, whenever we make an improvement or a new functionality is added everybody gets the benefit from that.”

When peak times hit, and orders are piling up, efficiency can make or break a restaurant’s reputation. By eliminating some of the hurdles, the software DECEMBER 2018

— Matt Graywood, COO at Preoday

CLICK TO WATCH : ‘THE PREODAY PLATFORM — A QUICK OVERVIEW’ 41

platform also helps to shorten queue

and there were missed sales too. They

times, reduce hassle and enhance the

selected Preoday and we implemented

customer experience. “Take Shack, for

a mobile and online ordering app which

instance – a Norwegian burger chain

gave customers the opportunity to

we’ve had as a customer since 2016,”

order ahead, skip the queue and then

notes Graywood. “They had three

pick up the food when it was ready

restaurants which were so popular that

rather than waiting.

people were queuing for an hour every

“The key thing about Shack was that

day to buy their burgers. The problem,

they had a really loyal customer base

whilst everybody kept going back to the

but they had a bottleneck whereby

food, was that they weren’t particularly

customers were all trying to purchase

happy about the waiting time.

at the same time,” he continues. “By

“Customer satisfaction was low, some adding this functionality, the customer people wouldn’t queue for that long,

success rate went right up. Mobile and e uro pe .busi ne ssc hief. com

LEADERSHIP

42

DECEMBER 2018

online ordering now account for 30% of their sales, so it’s a key part of their business.”

With customers across the globe and multi-language capabilities, the opportunities for Preoday are limitless. In its short five-year history, the company has already boarded a variety of food and beverage behemoths, expanded its footprint globally and helped restaurants and food chains overhaul the customer experience. This could be the difference that helps a restaurant cut through the noise in today’s ever-competitive market and, for Graywood, this is what makes working at the firm so rewarding.

“Whatever your needs are, we want to be the default ordering technology,” notes Graywood. “At its core, most of the team are the same people who built the technology and started the business in the first place.

Everyone feels invested in it; they want to see it succeed, they want our customers to succeed. When we work with a restaurant and we see their vision come alive, we’re very proud that it’s thanks, in part, to Preoday.”

e uro pe .busi ne ssc hief. com

43

TECHNOLOGY

44

Spreadshirt

simplicity is key amid its digital transformation AS TECH ADVANCES, KEEPING THINGS SIMPLE CAN DRIVE EFFICIENCY AND HEIGHTEN CUSTOMER EXPERIENCE, SAYS PHILIP ROOKE, CEO OF GLOBAL ECOMMERCE COMPANY SPREADSHIRT WRITTEN BY

DECEMBER 2018

OLIVIA MINNOCK

45

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TECHNOLOGY

F

rom promoting snappy slogans and allowing people to create to helping entrepreneurs and small businesses

thrive, global self-expression company Spreadshirt made its name as a European

T-shirt printer, but is now fast becoming a much more diverse, global entity. When we last spoke to CEO Philip Rooke, the company was just starting to expand in the US. Now, it has reached over €100mn revenue thanks in part to this new market and is looking to optimise efficiency and stick to its customer centric vision in order to help the European business grow in uncertain times where 46

productivity is ever more important.

“The majority of our business is European,” says Rooke. “That’s what drove us over €100mn (US$114mn) revenue.” Last year, Spreadshirt reached €106mn (US$121mn) in revenue, making €8.6mn (US$9.8mn) EBITDA. “This probably makes us the most profitable in our industry, and that’s because we’re able to concentrate on the right things.”

For Spreadshirt, the US marks a mammoth opportunity, but the region is not without its challenges. “America is a huge market – the average American buys 9.4 T-shirts per year, while the average German buys 4.5,” Rooke explains. “More importantly, in most European countries we have three DECEMBER 2018

47

“American companies are very good at being lean, agile and customer focused” — Philip Rooke, CEO, Spreadshirt

or four competitors – and are nearly always number one – but in America we’re tracking 200 companies to compete with.” In this relatively new territory, Spreadshirt must step up to the plate and enhance customer experience for the modern, tech-savvy consumer. “Americans are not very patient,” Rooke observes. “If your usability is poor, they leave for a competitor. We really had to work on getting the experience much simpler.

“American companies are very good at being lean, agile and customer focused,” he adds.

As such, a key transformation Spreadshirt has implemented, not only in the US but e uro pe .busi ne ssc hief. com

TECHNOLOGY

throughout its business, is to simplify

our customers do that in their spare

everything from production processes

time? I look with horror at how much

to its user platforms – not least mobile,

money I’ve spent on Amazon recently

which is important to nail down since

– most of it on mobile as it’s so simple,”

55% of Spreadshirt’s traffic last year

he adds.

was mobile. “With a lot of ecommerce,

Now, all development of the ecom-

all the browsing takes place on buses

merce platform happens mobile first,

or in bars when people are on the move

forcing the business to

or have a spare moment.

ensure the experience is

“By concentrating on mobile, it forces

48

as simple as possible.

you to simplify the consumer’s journey

“You can always imagine

so they can not only browse but easily

extra features, but they

buy on mobile. Is the platform simple

can make it harder

enough to create your own T-shirt or

to use. Every feature and

browse the creations of others? Can

function must be simplified,

DECEMBER 2018

right down to marketing communication

items. Coupled with the number of

because you can’t write two paragraphs

markets it operates across, Spread-

on why a premium T-shirt is better than a

shirt in 2018 is in may ways a complex

normal one – nobody’s going to read that

beast in which, as Rooke puts it, “there

on mobile. It forces everyone from web

are 10,000 things that could go wrong.”

designers to purchasing and assortment

This in itself has forced Rooke to simplify

teams to simplify.

his own outlook and that of his leader-

“Five or 10 years ago, the more

ship team. “There’s no way to manage

features you added the more exciting it

all that end to end – I’d go crazy. So,

was, but now people want to achieve

over the past couple of years, there’s

tasks really simply and as such the

been a big shift in how we manage

80/20 rule is cutting back in,” adds

the business.

Rooke. “You have to concentrate on what 20% of features, stocks, offering,

“I don’t manage or oversee all elements – I’ve employed people who are a lot

makes up 80% of your business.”

49

Across the board, from mobile ecommerce to the factory floor, digital transformation is certainly “forcing a lot of simplification,” according to Rooke.

This is especially challenging for Spreadshirt when its business model is anything but

“Five or 10 years ago, the more features you added the more exciting it was, but now people want to achieve tasks really simply” — Philip Rooke, CEO, Spreadshirt

simple – it has several businesses within it including people who sell on Amazon, directly to market, or create and buy or sell their own e uro pe .busi ne ssc hief. com

TECHNOLOGY

better than me,” he explains. “People used to write reports and ask for approval on what they were doing, but now we say ‘if you can turn this around, we don’t really care what you’re doing – we care what results you’re achieving.’”

Spreadshirt now uses a system called Objectives and Key Results (OKR), which is used by the likes of Google and LinkedIn, to empower various teams. Objectives for the quarter are agreed among directors and it’s up to individuals and teams to go away and achieve these however they see fit.

50

“That’s the only way to manage a complex international business,” says Rooke.

OKR allows empowerment to run right through the business. “People take responsibility. They care. They like the freedom of being able to think about how they can do things differently. Teams and individuals can really take ownership of what they’re doing.”

This is vital when as CEO, Rooke lives on a different continent to some of his teams and might only see them a few times a year. Having trust and empowerment in place means C-level executives have their time freed up to communicate where it matters. “When I’m talking to the Las Vegas factory, I’m DECEMBER 2018

“In the past, we thought things were clever if they were complex.

But actually, if someone can work out how to make something complex simpler – that’s the cleverest thing” — Philip Rooke, CEO, Spreadshirt

51

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TECHNOLOGY

52

DECEMBER 2018

talking about quality and cost improvements and why they matter – before, I was worrying about processes.

“We’ve abandoned nearly all the internal reporting – with the OKR system, and daily reports that show the KPIs that come out, it’s so much simpler and there’s less red tape. The whole mantra is around simplicity – trying to achieve something in a quarter is the simplest way to move it forward. People get rid of the big, complex ideas and brainstorm how to do things in a more complex way.

We celebrate that at Spreadshirt. In the past, we thought things were clever if they were complex,” Rooke adds, “But actually if someone can work out how to make something complex much simpler – that’s the cleverest thing.”

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53

CITY FOCUS

City Focus

DUB

54

DECEMBER 2018

F E AT U R E

BLIN Dublin — the ideal location for a European venture?

Dublin could make an ideal business hub, with the Irish capital famed for its culture but also making waves as a digitally-savvy powerhouse WRITTEN BY

LAURA MULLAN

e uro pe .busi ne ssc hief. com

55

CITY FOCUS | DUBLIN

56

D

ublin may be a small capital

the Eurozone, the city has a unique

but it is quickly gaining a big

advantage which it has capitalised

reputation. As the UK negoti-

on. In 2017, Ireland was placed eighth

ates its exit from the European Union

in Forbes’ annual Best Countries for

(EU), businesses from across the globe

Business ranking, praised for its low

have turned their attention to the Irish

corporation tax and talented pool of

capital, citing it as the ideal hub for

high-tech labourers. Looking forward,

organisations seeking a European base.

the future looks bright for Dublin, but

As a committed member of the EU and

how has the capital achieved this

the only English-speaking country in

world-class status?

DECEMBER 2018

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MELTING POT OF TALENT Ahead of the curve, Ireland is already home to some of the world’s top companies: 17 out of the top 20 global software companies have locations in the country, as well as 14 of the top 15

57

medical tech companies, 20 out of the top 25 financial service companies, 8 out of 10 of the top automation companies and all top 10 pharma companies.

As major players like Intel, Twitter, Pfizer, Citi, Huawei, Takeda, Fujitsu, and Novartis settle in the Emerald Isle, the country has pushed forward as a world leader in Internet of Things (IoT), Big Data, ICT Skills, energy efficiency, health innovation and cloud computing.

The key to Dublin’s success may lie with its people: the brightest of European talent has flocked to the Irish capital and, combined with its own multilingual, highly-educated workforce, e uro pe .busi ne ssc hief. com

CITY FOCUS | DUBLIN

this has created a melting pot of skills and innovative thinking. Ireland is often praised for its forward-thinking education system: this year, Ireland was ranked 19th out of 50 countries’ higher education systems in the Universitas 21 Ranking. This has helped the capital attract a workforce that is well-educated, mobile, ambitious and innovative.

A CEL-TECH TIGER With its pro-business attitude, Dublin has great promise, not least when it comes to

Currency

58

Euro 553,000 Population

Nearest airport

14km

Dublin Airport

DECEMBER 2018

the technology industry. Indeed, Vice President & MD of Google UK and Ireland, Ronan Harris, highlighted this potential when he called the country the ‘data capital of Europe’.

Ireland is, by all means, a frontrunner in

CLICK TO WATCH : ‘VISIT DUBLIN: SUNNY DAYS IN DUBLIN’ 59 technology. Today, some of the biggest names in tech can be found dotted along the so-called ‘Silicon Docks’ area of Dublin – a bustling business district. In fact, Facebook and Google alone are on track to occupy 4% of all commercial office space in Dublin next year, according to forecasts from estate agents Lisney. Ireland has a thriving IT industry, with 40% of its GDP – some €72bn per annum – deriving from the sector, according to reports by Sigmar Recruitment. The country is the second largest software exporter and as such, e uro pe .busi ne ssc hief. com

CITY FOCUS | DUBLIN

it has established itself as a leading

companies, with firms like Big Fish, EA

location for companies in the sector.

and Havok building a presence in the

Dublin is also fertile ground for start-

region. This reputation hasn’t gone unno-

ups. Not only is there a supportive eco-

ticed by the international business comm-

system, but there is also sufficient fun-

unity either; this year, Dublin came sec-

ding to be found. Last year, for instance,

ond place in the FDI European City of

Irish technology companies raised

the Future rankings, driven by strong

â‚Ź994mn in venture capital funding, up

investment in software and IT. As a reg-

12% on the year before, according to

ion, Dublin was also ranked as the top

the Irish Venture Capital Association.

small region for Economic Potential

Renowned for its creative talent with

and Business Friendliness by FDI.

high communication skills, Dublin has also attracted interest from games 60

DECEMBER 2018

When it comes to data centre locations, Dublin is also firmly on the radar.

BIG BUSINESS IN DUBLIN: Prominent industry giants have chosen to position their headquarters in the Irish capital of Dublin.

SMURFIT KAPPA Paper-based packaging giant, Smurfit Kappa, started out as a box-making factory in Rathmines, an inner suburb of Dublin, in 1934. Today, it stands as the leading corrugated packaging company in Europe and one of the leading paper-based packaging companies in the world. With operations in 35 countries, the FTSE 100 company employs over 46,000 employees and reported revenue of €8.6bn last year. Headquartered in Dublin, the firm has been led by Group Chief Executive Officer Anthony ‘Tony’ Smurfit since 2015. Earlier this year, Smurfit Kappa acquires Reparenco, a paper and recycling business in the Netherlands, for €460mn. The company also resisted a takeover attempt

by American packaging firm International Paper this year.

e uro pe .busi ne ssc hief. com

61

CITY FOCUS | DUBLIN

RYANAIR Headquartered in Swords, Dublin, low-cost airline Ryanair was founded in 1984. Ryanair carries over 130mn customers every year on more than 2,000 daily flights. Last year, Ryanair became the first European airline to have carried over one billion customers.

Michael O’Leary has been Chief Executive Officer of Ryanair since 1994 and he is currently one of 62

Ireland’s wealthiest businessmen.

The firm operates more than 400 Boeing 737-800 aircrafts. Today, Ryanair’s network serves 37 countries across Europe, Africa and the Middle East.

DECEMBER 2018

63

Investment in data centre construction

the Irish data centre market is set to

in Ireland is expected to reach more

continue on its upward trajectory.

than €9bn by 2021, according to pre-

All in all, it seems that Dublin’s thriv-

dictions by Host in Ireland and Bitpower.

ing business community, combined

Today, there are already 46 data cen-

with a strong ecosystem for entrepre-

tres in the country, with Amazon, Google,

neurship and a high quality of living,

BT and Facebook all having built facili-

make it an ideal location to set up –

ties. Thanks in part to a cold climate

and grow – a business.

which reduces cooling costs and the burgeoning renewable energy industry, e uro pe .busi ne ssc hief. com

10 & 11 April RDS Dublin

#DTS19 dublintechsummit.com

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DTS19 SPEAKERS

MARTHA LANE FOX Founder, lastminute.com

DOUGLAS TERRIER NASA CTO

JEETENDR SEDHEV New York Times Bestselling Author

MIHAI ALISIE Co-founder, Ethereum

T O P 10

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DECEMBER 2018

Top 10

most popular car brands in Europe The automotive industry has long been praised as the backbone of the European economy, accounting for 4% of its GDP. Casting an eye over data from the European Automobile Manufacturers Association, we investigate which are the most popular car brands in both the EU and the European Free Trade Association (EFTA), ranked by new passenger vehicle registration in the first quarter of 2018.

WRITTEN BY

LAURA MULLAN

e uro pe .busi ne ssc hief. com

67

T O P 10

68

10

Toyota Japanese car maker, Toyota Motor Corporation, is one of the world’s largest automotive makers. Best known for big-selling cars like the Camry and Prius, 197,385 new Toyota cars were registered in the first quarter of the year. In June, the automotive maker agreed to buy a $1bn stake in Southeast Asia’s largest ride-hailing firm, Grab. In March, Toyo revealed that it was joining forces with automotive suppliers Aisin Seiki and Denso to create Toyota Research InstituteAdvanced Development (TRI-AD), a new company focused on the development of self-driving cars.

www.toyota-global.com

DECEMBER 2018

69

09 Fiat

Founded in Italy in 1899, Fiat has emerged as an automotive powerhouse in Europe with 207,859 new Fiat vehicles registered in the first quarter of the year. One of the company’s most popular models is the Fiat 500. The model was first sold in 1957 and today it is sold in more than 100 countries. Today the company’s core markets are Europe and Latin America, but the brand also hopes to grow its presence in the Asia-Pacific through mergers and joint ventures. The car brand says that it sells more than 1.3 million units worldwide every year.

www.fiat.com

e uro pe .busi ne ssc hief. com

T O P 10

70

08 Audi

Audi is part of a trio of the luxury automobile manufacturers popularly known as “German Big 3�, with BMW and Mercedes-Benz being the other two. It remained a leading car manufacturer in the first quarter of the year with Europeans registering 212,347 new Audi cars. The Audi brand has been majority owned by the Volkswagen Group for more than 40 years. By 2025, the company aims to will sell approximately 800,000 electric cars and plug-in hybrids, which equates to approximately every third Audi self-driving cars.

www.audi.com

DECEMBER 2018

71

07

BMW Bayerische Motoren Werke, popularly known as BMW, remained an admired car brand in the first quarter of the year, with 213,051 new cars registered in Europe. The brand is produced by German automotive maker BMW Group, who also produces cars under its Mini and Rolls-Royce brands. BMW Group recorded that it had 129,932 employees and generated EURâ‚Ź98.68bn in 2017.

www.bmw.com

e uro pe .busi ne ssc hief. com

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06

Mercedes-Benz A division of German company, Daimler AG, Mercedes-Benz is an automobile marque best known for luxury vehicles. 228,358 Europeans registered new passenger vehicles in the first quarter of the year.

The firm is headquartered in Stuttgart, Baden-Württemberg, and it has adopted the slogan “the best or nothing”. In September, Daimler announced that company veteran Ola Kaellenius will become CEO next year. He will be the first non-German CEO to head up the firm.

www.mercedes-benz.com

DECEMBER 2018

05

73

Vauxhall–Opel For the first time since 1999, Vauxhall-Opel returned to profit after it was acquired from General Motors (GM) by France’s PSA Group last year. The GBP£1.9bn (US$2.4bn) deal makes PSA Group the secondlargest car manufacturer in Europe. In the first quarter of the year, 249, 756 new Vauxhall-Opel vehicles were registered in the continent. According to CNN, PSA Group said that Germany brand Opel and its UK sister brand Vauxhall generated an operating profit of EUR€502 million (US$587 million) in the first half of the year.

www.opel.com and www.vauxhall.co.uk

e uro pe .busi ne ssc hief. com

T O P 10

74

04

Renault The eponymous car brand by Groupe Renault has become a firm favourite in the European market. 287,04 new Renault cars were registered in the first quarter of the year, making it the third most popular brand during the period. The French firm has a two-decade-old alliance with Japanese car manufacturers Nissan and Mitsubishi. By 2022, the alliance hopes to double annual synergies to EURâ‚Ź10 billion by the end of the plan. Carlos Ghosn is currently CEO of Renault.

https://group.renault.com

DECEMBER 2018

03

75

Peugeot French automotive manufacturer, Peugeot, also cemented its position as one of the most popular car brands in Europe, with 269,788 new vehicles registered in the first quarter of the year. Part of PSA Group, Peugeot is the largest PSA brand worldwide. Founded over two centuries ago, Peugeot has a long-lasting history in the automotive sector. The Peugeot 203 was the first car produced after the Second World War, according to the firm.

www.groupe-psa.com

e uro pe .busi ne ssc hief. com

T O P 10

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DECEMBER 2018

77

02 Ford With 295,877 new vehicles registered

phere Institute’s ranking for the World’s

in the first quarter of the year, Ford has

Most Ethical Companies. Ford of

cemented its position as the third most

Europe AG, a subsidiary of Ford Motor

popular car brand in Europe. With top

Company, is headquartered in

models including the Ford Fiesta and

Cologne, Germany.

Ford Focus, the American brand has

https://corporate.ford.com

left a lasting impression on the European automotive market. The car manufacturer currently features in the Ethise uro pe .busi ne ssc hief. com

T O P 10

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DECEMBER 2018

79

01 Volkswagen Topping the leaderboard, Volkswagen

manufactured some of the continent’s

has once again gained the spotlight as

most popular car models and, in the

the leading car brand in Europe. The

first quarter of the year, 464,678 new

car brand is manufactured by German

Volkswagen vehicles were registered.

automaker Volkswagen Group who

The company was founded in 1937 and

operates 120 production plans in 20

is headquartered in Wolfsburg, Germany.

European countries and a further 11

www.volkswagenag.com

countries in the Americas, Asia and Africa. From the Volkswagen Golf to the Volkswagen Polo, the brand has e uro pe .busi ne ssc hief. com

SWEDISH MINING AUTOMATION GROUP

80

PROMOTING DIGITAL TRANSFORMATION IN CANADA’S MINES WRIT TEN BY

L AUR A MULL AN PRODUCED BY

RICHARD DE ANE

DECEMBER 2018

MINING

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

82

Business Sweden Canada with partners from the Swedish mining industry has created SMAG to help the mining sector evolve into a more sustainable and innovative industry. We spoke to Project Manager and Mining Industry Advisor, Christian Orrego Silvander, to find out more

DECEMBER 2018

MINING

M

ining is often cited as one of the last remaining industries to be disrupted by technology, but that is changing quickly.

From driverless trucks to robotic drills, digitisation is quickly bringing a new measure of safety to mines. It’s also boosting the efficiency of how we obtain the precious minerals needed to make everything from modern cars to devices. In the coming years, mining automation is primed for explosive growth, and it seems that one Nordic country is set to be at the epicentre of it all.

Sweden may be a small mining nation but when it comes to mining technology, it’s considered to be in a league of its own. Looking to collaborate and foster innovation in the mining sector, six Swedish mining technology firms have joined forces with Business Sweden to create the Swedish Mining Automation Group (SMAG). Formed just one year ago, SMAG is a collaborative ecosystem that plans to revolutionise mining, creating a more sustainable industry by innovating holistic solutions together with mining companies.

Jointly owned by the Government of Sweden and representatives from the Swedish business community, Business Sweden works across an array of different industries but mining has proven to be a key area for optimism. One such person who helped to steer this new focus is Business Sweden’s Project Manager and Mining Industry w w w.busi ne ssc hief. com

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

Advisor Christian Orrego Silvander. He believes that this collaboration between Swedish automation groups and other global miners is a win-win partnership.

“Our mission is to help Swedish companies grow internationally, as well as to attract foreign investments to Sweden,” Silvander explains. “Sweden has a long history of providing solutions to the mining industry and it’s quite famous for having some of the leading original equipment manufacturers (OEMs) in 84

mines. Today more than 50% of the technology used in underground mines comes from Sweden.”

Ericsson, Eprioc, SKF, Mobilaris, Sentian Technologies and Scania Mining: the founding members of SMAG make for impressive reading, and in conjunction with Business Sweden, they plan to bring the latest industry know-how and technologies to mining regions across the globe. One such country where SMAG is leaving a lasting impression in is Canada. A force to be reckoned with on the mining stage, Canada is a country that is renowned for its mining heritage. Last year, the industry contributed CAN$72bn DECEMBER 2018

MINING

“ SWEDEN HAS A LONG HISTORY OF PROVIDING SOLUTIONS TO THE MINING INDUSTRY AND IT’S QUITE FAMOUS FOR HAVING SOME OF THE LEADING ORIGINAL EQUIPMENT MANUFACTURERS (OEMS) IN MINES.” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

(US$54.8bn) to its GDP, according to Natural Resources Canada. As such, Business Sweden and SMAG decided to zero in on Canada as a key regional focus.

“The reason we revived this focus on mining was due to the positive outlook on mineral prices as well as the environment here in Canada,” summarises Silvander. “The mining industry is also focusing greatly on creating a more sustainable and innovative future through industrial collaboration and this resonates quite well in Sweden.

Even though we’re quite a small mining nation – we only have 15 active metals mines – we have a long history of innovating through collaboration.

That aligns well with the vision of the w w w.busi ne ssc hief. com

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

CLICK TO WATCH : ‘SIMS MINING — THE HORIZON 2020 PROJECT’ 86 Canadian mining industry too, which is

don’t have a strategy for digitising or

hoping to become more sustainable

automating their mines, but rather they

and innovative.”

have a strategy to improve safety and

There’s a lot Canada can learn from

increase productivity,” Silvander explains.

Sweden, observes Silvander, citing

“For them, the best way to do that was

Swedish mining operators Boliden and

to use digital technology.” Looking at

LKAB as “amongst some of the most

connectivity, precision technology,

progressive in the world”. Both of these

stabilising processes and eliminating

companies have been early adopters

waste as well as implementing new

of digital and automation technology

mining methods, these mines have

but interestingly, Silvander points out

proven to be gleaming examples of the

that this isn’t about technology for

benefits of mining automation and this

technology’s sake it’s, first and foremost

technological prowess hasn’t gone

about safety, productivity and efficien-

unnoticed worldwide.

cy. “For example, Boliden said that they DECEMBER 2018

“Recently, there’s been a lot of

MINING

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

FA C T S

• Last year, the mining industry contributed CAN$72bn to Canada’s GDP, according to Natural Resources Canada

88

examples of different demonstration projects that have been done mainly in

with other leading mining nations.”

Cross-country collaboration is at the

Sweden and Europe quite recently,”

core of SMAG’s mission and ethos. But

continues Silvander. “All of them have

how has the organisation managed to

a goal to create safe and efficient mines

bridge both a geographic and cultural

by implementing automation technology.

divide? “When we started this initiative,

But this shouldn’t only be on Swedish

we tried to connect with key mining

soil. This should be something that is

organisations, the ones that are driving

implemented internationally. For Sweden,

innovation within the industry. We

with a population less than 10 million

started working with these regional

that’s dependent on international

and national companies. We found out

collaboration, I see this as a very good

their needs, how they operate, and how

opportunity for us to be the one who’s

we can collaborate with them because

leading the development but together

we all more or less have the same

DECEMBER 2018

MINING

ambition of transforming the industry to make it more sustainable.” By analysing the individual needs of mining operators and disseminating the ‘Swedish mining model’, SMAG has the ambition to help Canadian miners navigate their long-term roadmaps to digitise and automate their mines but, perhaps more importantly, they are also lowering the barriers between suppliers and mining companies to foster cooperation and future innovation.

“With SMAG, we’re trying to foster a co-development culture and lower

E X E C U T I V E P R OF IL E

Christian Orrego Silvander Management consultant with passion for innovation, strategy and collaboration. Strong communicator with expertise in conceptualizing business ideas and pitching technology solutions.

In depth experience of business development and internationalization of tech companies and start-ups in industries such as mining, healthcare, biotech, and cleantech.

Currently leading the Swedish Mining Innovation Group (SMAG) with six leading mining suppliers with the intention to enable holistic solution within mining through cooperation with mining companies. In addition establishing strategic alliances with Canadian stakeholders with the objective to establish a mining collaboration platform between Sweden and Canada. w w w.busi ne ssc hief. com

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S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

the variant between vendors and

they’re very keen to transform the

mining `that can really be learned

industry. But I think by allocation

from Sweden,” observes Silvander.

more resources to trying innovative

“The Canadian Mining industry has

solution in the mine rather than

created solid roadmaps for innova-

establishing new roadmaps for them,

tion but there is a need to convert

will accelerate the transformation.

them to actions. Most of the industry

That is really what I see as the missing

also have innovation managers so

link to this puzzle. I think they are

90

DECEMBER 2018

MINING

“ TODAY MORE THAN 50% OF THE TECHNOLOGY USED IN UNDERGROUND MINES COMES FROM SWEDEN” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

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True digitalization of underground mines, enabling doubledigit productivity increases AND safety improvements.

Real-time Situational Awareness

Ventilation On Demand

Fix those low hanging fruits that waste time and lower face utilization.

We let the presence of machines control the ventilation which is very fast to setup remotely.

Short Interval Control

Emergency Evacuation

From just being monitoring to become operational and able to replan during a shift.

Save lives by shorten the time to evacuate the mine in the case of an emergency.

Optimized Machine Utilization

Mass Localization

Analyze integrated machine data vs plan to optimize your machine utilization.

Another low hanging fruit that locates equipment in a very cost-efficient way.

Traffic Awareness

Improvements by Analytics

Minimizing traffic congestions and make your transports smooth and safe.

Enables you to continuously monitor the face utilization outcome and track productivity.

www.mobilaris.se/mce

MINING

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going in the right direction and SMAG

munication company that offers mine

could definitely help with this challenge.”

connectivity and today, they’re deploy-

How to meet the demands of Industry

ing 5G technology which could be an

4.0 is one of the most pressing ques-

innovative way forward for mines in

tions for mining operators today. By

Canada. We also have one of the most

working with a rich ecosystem of holistic

prominent OEMs, Epiroc, who when it

solutions rather than single products,

comes to the automation of equipment

SMAG believes it provides a unique

or meeting KPIs in underground mines,

solution. “This way of working together

they are one of the firms leading the way.”

with a group, as opposed to one vendor

Other members of the ecosystem

is a very new concept, especially in the

include Mobilaris, which provides critical

mining industry,” asserts Silvander.

decision support for production

“There’s also a mix of different compa-

efficiency and safety. “They’re very

nies. Take, Ericsson: they’re a telecom-

prominent in the mining intelligence w w w.busi ne ssc hief. com

S W E D I S H M I N I N G A U T O M AT I O N G R O U P ( S M A G )

480+

Number of Business Sweden employees

2017

Year founded

53

Number of offices around the world

94

“THIS WAY OF WORKING TOGETHER WITH A GROUP, AS OPPOSED TO ONE VENDOR IS A VERY NEW CONCEPT, ESPECIALLY IN THE MINING INDUSTRY” — Christian Orrego Silvander, Project Manager and Mining Industry Advisor at Business Sweden

DECEMBER 2018

area and are developing tools for positioning and enabling real-time short-interval control,” highlights Silvander. Sentian Technologies has also played a key role in this ecosystem, standing as a company with a long background in AI. Additionally, Scania Mining, which Silvander says “provides fleet management and mine site optimisation by applying lean manufacturing principles” has gotten onboard

MINING

95

alongside SKF, which has “been in

is eyeing up further opportunities in

Canada for over 100 years and are

mining hubs like Australia and Chile.

experts in rotating machinery, reliability

“We have an ambition to go global,�

and offer advanced data analytics

he says brightly.

and predictive maintenance. Looking forward, Silvander is keen to include more suppliers in this ecosystem and

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PROCUREMENT TRANSFORMATION JOURNEY OF ANSALDO STS WRIT TEN BY

L AUR A MULL AN PRODUCED BY

RICHARD DURR ANT

DECEMBER 2018

S U P P LY C H A I N

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ANSALDO STS

In line with its parent company, Hitachi, Ansaldo has continued to deliver world-class transport services thanks in part to an innovative procurement transformation

F

aster, safer and more efficient: today’s communities are demanding more from their transportation systems and it seems that many

have found the answer when working with Ansaldo

Signalling and Transportation Systems (STS). Over the past decade, Ansaldo STS has continued to 98

make a lasting impression when designing and implementing railway signalling, automation and integrated transport systems for both metro networks and railway lines, and through its operations, has ensured that people can easily get from A to B. As a Hitachi Group company, Ansaldo STS has leveraged its international experience to help transform transport systems around the globe. This means that whether you’re in Italy or France, the US or India, Ansaldo STS has the expertise to help. In fact, today, the technology firm has designed and implemented solutions in around 28 countries, generating about USD$1.5bn in turnover. Now, as its global footprint expands further, the company has also transformed its procurement process to ensure that it can cater to its global outlook.

DECEMBER 2018

S U P P LY C H A I N

$1.5bn Approximate revenue

1853

Year founded

4,228

Approximate number of employees

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ANSALDO STS

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“ Our procurement team is fully involved from the beginning of the process and can lead the sourcing of each package” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS

DECEMBER 2018

S U P P LY C H A I N

This responsibility has partly fallen

therefore, a major part of our costs

into the capable hands of Filippo

comes from the external partners and

Fanfani, Vice President of Procurement.

suppliers. Recognising this, we have

Joining the firm in 2014, he says that

implemented a new strategy, manage-

for global companies like Ansaldo STS,

ment and organisation of our supply

having a best-in-class procurement

base. I would say that this is even more

function is more important than ever

important in a global environment where

before. “We are a global business: we

we have key projects across the globe.”

have our core business, such as sign-

With support from top management,

alling, where we design and produce

Ansaldo STS has undergone a restru-

our own products but on the other side,

cturing, creating a new procurement

we also offer turnkey solutions and act

organisation that deals with engineer-

as a technology integrator,” he explains.

ing, development, manufacturing, con-

“For this business, we create the main

struction and the projects through

contract on behalf of our customers and

supply chain planning organisation.

E X E C U T I V E P R OF IL E

Filippo Fanfani Mr. Filippo Fanfani has a multiyear industry background within automotive, industrial and rail businesses, cross functional experiences and a strong international exposure. As part of the Ansaldo STS Executive team Fanfani leads the global Procurement organization (1bn€ spend and about 90 team resources) with the aim to transform it into an effective strategic function. Process and People development are his forte, besides, sourcing strategies and operational initiatives. He believes in sustainable and reliable relationship with key supply partners to achieve progress.

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101

ANSALDO STS

This has helped to foster more robust

operations, moving towards a supply

and strategic sourcing process. “Our

chain and construction focused orga-

procurement team is fully involved

nisation spanning, procurement,

from the beginning of the process and

manufacturing, logistics, supply chain

can lead the sourcing of each package.

planning and construction.

It’s fundamental for the turnkey business

For Ansaldo STS, procurement is

so we can define the external cost of

organised in a global matrix structure

each project and maintain a sustain-

under Filippo Fanfani’s leadership.

able margin. I would say that negotia-

On one hand, roles are organised by

tion of cost and risk management are,

regions and on the other axle the global

for sure, two key aspects that they

commodities. This matrix responsibility

keep in consideration.” In order to be

provides the reasonable balance

even more effective today the compa-

between global efficiency and local

ny decided to restructure the global

effectiveness as well as a proper

102

DECEMBER 2018

S U P P LY C H A I N

CLICK TO WATCH : ‘ANSALDO STS STRATEGIC BUSINESS OVERVIEW’ 103 managerial control over the decisionmaking process. Moreover, with this procurement organisation the benefits are two-fold: the firm can not only negotiate tenders from the beginning of the process but it can also enter the global market with sound knowledge of the specific technologies and processes needed for the project. “It’s important for us to work alongside the business and to go to the market as soon as possible,” observes Fanfani. “Technology changes every day and our customers are looking for innovative tools, so it’s e uro pe .busi ne ssc hief. com

very important that we can go to the

“Leading the sourcing from the

market and understand what our part-

beginning of the bid, we understand

ners can provide to us from the offset.

the documents we have in our hand,

We need to lead the process.”

what we need to have shortly. We

Across its turnkey business, Ansaldo

definitely have to consider what are the

STS has to work closely with partners

constraints, the opportunities and the

to implement cutting-edge transport

supplier base we need to get on board.

technologies. Its supply chain organi-

There are several functions involved in

sation has, therefore, been invaluable:

the planning of the sourcing – providing

by working shoulder to shoulder with

data, documents and in general inputs

both customers and suppliers from the

during the sourcing process – and so it

offset, it’s allowed Ansaldo STS to lead

helps us lead that process respecting

the way and negotiate cost-efficient ten-

each function delegation of authorities

ders, without getting swept up by new

and get a proper match among techni-

waves of digitisation or time constraints.

cal contents, costs, prices and risks,”

DECEMBER 2018

S U P P LY C H A I N

“ It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS

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105

ANSALDO STS

adds Fanfani. “Thanks to this approach, we have a strong understanding of the specifications of our customers’ needs and we flow them down to our suppliers.”

Supplier relationship management is a pressing concern for any supply chain professional and it is one which Ansaldo STS has tackled head-on. By working consistently with its partners and suppliers, creating lasting relationships has become second nature to the firm. “This continuous relationship 106

with our key suppliers is critical as well for our success in a global environment,” notes Fanfani. “As a buyer, you’re responsible for maintaining a strong relationship with your key suppliers.

The balance between global and local interaction in our supply chain organisation also allows us to leverage the right partner who can deliver a costefficient product.”

A digital enthusiast himself, Fanfani is keen to keep abreast of the latest technological innovations shaking up the sector. After the procurement organisation zeroed in on identifying the best practices and processes,

DECEMBER 2018

S U P P LY C H A I N

C OMPA N Y FA C T S

• Ansaldo STS is headquartered in Genoa, Italy, and has over 4,228 employees in 28 different countries.

107

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ANSALDO STS

108

“ I strongly believe that in a global environment like today which is becoming more and more digital, procurement also needs to be in line with that” — Filippo Fanfani, Vice President of Procurement at Ansaldo STS

DECEMBER 2018

S U P P LY C H A I N

digitisation was seen as the next natural step.

As a result, Ansaldo STS is currently in the process of implementing a new digital procurement platform. “This will help us streamline our processes and it will also give us a global tool where all procurement professionals can work during the sourcing process,” observes Fanfani. “I strongly believe that in a global environment like today, which is becoming more and more digital, procurement also needs to be in line with that. I would say that this is the first step for implementing further technologies in the future.”

In today’s global market, Ansaldo STS may be facing stronger competition but Fanfani is confident that with its newfound global approach, the company is well up for the challenge. Leveraging the power and image of its parent group, Hitachi, it seems the only way for Ansaldo STS is onwards and upwards. “As a part of Hitachi, we can leverage their expertise and utilise the power we have behind us, particularly when it comes to technology. It’s really important for us to be updated with the latest digital transformation. It’s not something to be considered ‘nice to have’, it’s mandatory.”

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109

EMASA

110

Combining technology with purpose WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

LE WIS VAUGHAN

ENERGY

111

EMASA

Investing in new technologies in order to provide essential services to its citizens, EMASA remains a leader in the utilities market

O

ne of the first Spanish cities to have a company for the management of the water supply system in the 19th

century, Mรกlaga remains at the forefront of environmental innovation. Undertaking the 112

management of the integral water cycle in the city of Mรกlaga, Empresa Municipal Aguas de Mรกlaga (EMASA) treats water from detection of the necessary hydraulic resources from distribution, purification, sanitation, and supply, to the disposal of waste water or reuse of waste water.

Once responsible for designing and implementing all the new information systems for the toll road between Mรกlaga and Marbella, Chief Information Officer, Pedro Galdรณn joined EMASA in a bid to unlock new opportunities and gain the ability to grow within a large public organisation. Responsible for 15 people, he explains that his role has evolved to one which is more focused on business, in order to drive further value through technology.

DECEMBER 2018

ENERGY

113

€70mn Approximate revenue

1986

Year founded

425

Approximate number of employees

e uro pe .busi ne ssc hief. com

One solution.

Any application.

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Experience it Now

ENERGY

“For more than seven years,EMASA has been developing,promoting and implanting an intelligent reading system in our city” — Pedro Galdón, Chief Information Officer

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115

EMASA

116

“Technology is everywhere, but here

water. It is a treasure indispensable to

in EMASA it plays a key role. In fact,

all human activity,’ Galdón is keen to

we are the leading company in smart

stress the potential of new technologies,

metering in the Spanish water sector,”

where the company will gain the ability

he says. “For more than seven years,

to analyse big data and provide solutions

EMASA has been developing, promot-

to tackle global water shortages.

ing and implanting an intelligent reading

“We treat waste water in our facilities.

system in our city. Smart metering has

Purifying water, reusing it to irrigate

put us at the forefront of the sector at

and turn solid waste to solid fuel. The

a national level. We already have more

water we can’t reuse is pumped into

than 115,000 electronic meters installed

the city offshore. We are now starting

in Málaga.”

to use drones for inspection tasks,

Whilst the European Water Charter

where it is difficult for workers to reach

has stated that ‘there is no life without

or there is a high level of risk. I think in

DECEMBER 2018

ENERGY

117

Pedro Galdón Name Here

E EX XE EC CU UT T II V VE EP PR R OF OF IL IL E E

A Computer Engineer by aut background, MBA and Approx 100 words quam aut eaturiwith sequianquiasit, qui PhD from Malaga University, Pedro Galdon has conem workedquo in the IT dolupta cusdand enistium acienimi, offici field since 1993. His previous role as ITSundant Manager Autopista blaudi occumqui cone laborep ratur? asatrempe de del Sol led to the design and implementation for all new voluptu ribus, sequo omnisitem laut a dolut occulparum Information Systems for the new Tollderes Roadaliandit betweenharit, Málaga hillant quibus mi, voloreprovit ende and Marbella. net, offic temperro con experat. Cum faccum quati officiet In 2005 at ISLANDA, an Open Source Development Company peresti ncitia in restrum faccum quo el illuptam dolupta sited at the Technological Park of Málaga, Galdon’s role as erempor alitaquo tem secae vellant.

Ta quid qui veliqui CTO sawditi himatibusa advance the company’s surrounding nobitius consediossit evel strategy ius des qui con ped technical resources, and aepernam implementing new systems quam, sedit, totatustevaluating dis nonsequ fugiti conestoand infrastructures.

EMASA in 2006 as Technical tas everes id ut autemHeetjoined moluptius.

Igenis soloribus accate Head, 2014. sendit,becoming que nos etCIO queinebit et omnih.

e uro pe .busi ne ssc hief. com

EMASA

the near future all dangerous jobs will be undertaken by a robot or drone.”

Previously, the company housed a traditional IT team suitable for the era in which its infrastructure was developed. However, upon bringing on board SAP technologies, EMASA faced a challenge in upgrading its outdated systems and looked towards gaining significant expertise. Working alongside Nutanix, the business has deployed a hyper-convergence system, but faced resistance from a number of large manufacturers.

118

“ We are now starting to use drones for inspection tasks, where it is difficult for workers to reach or there is a high level of risk” — Pedro Galdón, Chief Information Officer

DECEMBER 2018

ENERGY

CLICK TO WATCH : ‘YO GESTIONO MI AGUA NUEVA APP DE EMASA’ 119 “We still took this forward and embarked on this hyper-convergence adventure. Nutanix gave us an escalation in performance with a very simple management system. They put data as close as possible to where it is executed and I think that’s the key to improving traditional performance. It seems like a simple idea, but nobody had thought about it before.”

Moving from traditional quality assurance to adopting lean methodologies, all parties have now become involved in EMASA’s new culture in eliminating waste and ensuring quality across every process designed, whilst enhancing the customer experience. All of its operations e uro pe .busi ne ssc hief. com

EMASA

C OMPA N Y FA C T S

• Málaga was one of the first Spanish cities to have a company for the management of the water supply system in the 19th century 120

• EMASA treats water from detection of the necessary hydraulic resources from distribution, purification, sanitation, and supply, to the disposal of waste water or reuse of waste water • Working alongside Nutanix, the business has deployed a hyper-convergence system • As drought continues to be a key challenge in Málaga, EMASA has sought to raise awareness and create campaigns on the ways its citizens can reduce water usage

DECEMBER 2018

€

ENERGY

“ We are the leading company in smart metering in the Spanish water sector” — Pedro Galdón, Chief Information Officer

121

will be further bolstered by the EMA-

In 2019, we are aiming to develop

SA’s Laboratories, which adhere to all

a new Virtual Office, which will

international standards.

become our flagship technology.”

Through the use of its support platform,

As drought continues to be a key

Virtual Office, customers have gained

challenge in Málaga, EMASA has

the ability to carry out a number of

sought to raise awareness and

processes 24 hours a day. It is also

create campaigns on the ways its

a key project which the company is

citizens can reduce water usage.

presently working to develop further.

However, Galdón notes that the

“For me, it is one of the most important

business should also further invest

things we can do for our customers.

in improving its present facilities. e uro pe .busi ne ssc hief. com

EMASA

“ EMASA is an advanced environmental management company and we want to make the citizens the aware of the importance of the dangerous of water scarcity” 122

— Pedro Galdón, Chief Information Officer

DECEMBER 2018

ENERGY

“EMASA is an advanced environmental management company and we want to make the citizens the aware of the importance of the dangers of water scarcity. What also makes EMASA different is our promotion of scientific research, cultural activities and assisting with the preservation of the environment,” he adds.

“We are transforming EMASA in a technology company. We are facing the fourth revolution with data sensors, drones, devices, applications and more.

“We have to be able to take advantage of all of these technologies. If we do that, we will transform EMASA into a more efficient, environmentally friendly and customer-oriented, public company. We will be the kind of public water company you would want your children to have.”

e u rope .b u sines s chi ef. co m

123

Just in time to say goodbye.

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

Lufthansa Technik AG, marketing.sales@lht.dlh.de Call us: +49-40-5070-5553

lufthansa-technik.com