Business Chief Europe Magazine – March 2019

EUROPE EDITION MARCH 20 19 europe.businesschief.com

DATA-DRIVEN DIGITAL TRANSFORMATION

E X CL US I V E V IDE O

Transforming finance across the globe

Innovative, customer-driven, tech-led...

AXA’S MOVE TO THE CLOUD Global Program Director Ash Shah discusses the insurer’s technology transformation

Digital disruption in the telco space

City Focus

smartest cities in Europe

FRANKFURT The financial powerhouse

FOREWORD

W

elcome to the March edition of

magazine to discuss transformation

Business Chief Europe!

in their respective industries.

AXA is this month’s cover feature with exclusive video content as Global

Business Chief also looks at what

Program Director Ash Shah

Frankfurt has to offer. The city is

discusses the insurance giant’s

the largest financial sector in

move to the cloud, as it aims

the Eurozone, and is home to

to become an innovative,

Germany’s tallest

customer-driven, tech-

buildings, largest

led organisation.

airport, and biggest inner-city forest.

The CEO of Belgium’s BICS, Daniel Kurgan, tells us about global

Ash Shah, Global Program Director, AXA

customer trends and the

Additionally, the smartest cities on the continent are revealed –

operations the company has

from Oslo to London, these

underway to meet new demand. The

metropolises have updated their

business is embracing digitisation by

infrastructure and focused

extending its offerings and preparing

on sustainability.

for new technologies, such as 5G. Enjoy the issue!

Companies such as AirMalta, Croda,

Sophie Chapman

Emmerson PLC, Hapimag, IBS

sophie.chapman@bizclikmedia.com

Software, Siemens, Travelex, and Uniper also feature in this month’s e u r o p e . b u s i n e s s c h i e f. c o m

03

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CONTENTS

AXA’s Move to the Cloud: a customer-driven technology transformation

10 30 KEEPING UP WITH THE EVOLVING TELCO INDUSTRY

38 SOFT WARE ENABLING

5G

REINVENTING UPSKILLING FOR THE 4TH INDUSTRIAL REVOLUTION

48 60

72 City Focus

FRANKFURT

OPEN DATA ADDRESSING WORLD H U NGE R — SOLVING THE AGRICULTURAL CRISIS FOR A MORE SUSTAINABLE FUTURE

82

TOP 10 Smart cities in Europe

CONTENTS

96 Siemens

112

130

Uniper

Travelex

148 Air Malta

196 Hapimag

214 166

KTM Group

Croda

184

234

IBS Software

Emmerson PCL

10

MARCH 2019

TECHNOLOGY

AXA’s Move to the Cloud: a customer-driven technology transformation

WRIT TEN BY

OLIVIA MINNOCK PRODUCED BY

A LE X PAGE

e uro pe .busi ne ssc hief. com

11

AXA

Ash Shah, AXA Group’s Global Program Director for the insurance giant’s Move to the Cloud, discusses the technology transformation as part of AXA’s ambition to become a customer-driven, tech-led organisation

“W

hen we undertake a transformation, we do it on a truly global scale with technology at the forefront as one of the enablers,”

comments Ash Shah, Global Program Director of leading insurer AXA’s Move to the Cloud initiative.

12

This is no mean feat, with the insurer serving 105mn clients across a vast footprint of 62 countries. To aid its technology transformation, AXA has undergone a significant company-wide IT restructure. “We have an ambition to be an innovative, customer-driven, tech led company and we’ve enhanced and modified our IT organisation to support and drive that ambition,” Shah explains. “Technology has become more intrinsic in our business and it’s no longer just a support function – it’s the key enabler for us to continue to innovate and move forward as an organisation.”

‘INNOVATIVE, CUSTOMER DRIVEN, TECH LED’ As a composite insurer, AXA covers many lines of business including health, life, property and casualty insurance. The French multinational currently spans a mix of growth areas and established markets, MARCH 2019

TECHNOLOGY

13

e uro pe .busi ne ssc hief. com

From Inspiration

to Innovation

TECHNOLOGY

CLICK TO WATCH : AXA GLOBAL PROGRAM DIRECTOR ASH SHAH ON TRANSFORMATION ACROSS GEOGRAPHIES 15

and has a significant legacy of looking

standing – all aimed at promoting

after customers at those times when

innovation and collaboration and

they need it most. Shah, who assumed

showing, through colourful posters

his current role just six months ago, is

and games areas, that insurance is far

already a familiar face in Paris where

from an old-fashioned career choice.

AXA is headquartered. Counted among

AXA’s staff are adapting well to

its numerous locations is the spectacu-

the new working environment which so

lar new Java building which offers a

much investment and thought has gone

true reflection of AXA’s ambition to

into. Colleagues do not have a strict

modernise a business often seen as

dress code – with some stating this

traditional. The office itself boasts

makes them feel more valued for their

open space, natural light, and flexible

skills and output than their appearance

options allowing colleagues to work

– and have plenty of opportunities to

independently or as a group, sitting or

socialise by playing pool or enjoying e uro pe .busi ne ssc hief. com

Building an ecosystem?

Connect the dots. “Your journey to cloud must navigate pitfalls and opportunities that are unique to your business. We support you in imagining and delivering your cloud journey and making it run�.

Eric Meistermann, Deloitte Partner in charge of AXA Group

TECHNOLOGY

“ We foster a strong change management process where we make sure we communicate, evangelise and onboard our colleagues in all parts of the organisation” — Ash Shah, Global Program Director – Move to the Cloud, AXA

coffee together. Shah joins us at this new

We measure compliance, performance

Paris office having spent three days with

and KPIs at both a centralised level and

AXA’s Dubai Gulf business discussing

a local entity and business level,” says

the company’s transformation across

Shah. “It’s also important to understand

that region. “It’s pushing all parts of our

the various cultures AXA operates in

organisation into that journey and bring-

and the pace and size at which they can

ing them onboard. It takes time and effort

make changes.” For example, AXA’s

and engagement – but once you do that,

companies in growth markets will focus

you can see the end results. We’re moni-

on establishing a presence while

toring, and can see we’re making good

well–established entities might focus

progress now,” he enthuses.

on innovation to remain competitive.

In its ambition to become tech led, sectors and geographies with both

A GLOBAL, CUSTOMER-CENTRIC TRANSFORMATION

a strong global vision and local knowl-

Currently, one of AXA’s key areas of

edge. “Usually, we have a central team

development – and the element for

but we listen to the requirements and

which Shah is responsible – is its ‘Move

needs of our different business units and

to the Cloud’, whereby the business will

make sure they are a part of that journey.

come away from legacy technology

AXA is pushing technology across all

e uro pe .busi ne ssc hief. com

17

TECHNOLOGY

CLICK TO WATCH : GLOBAL PROGRAM DIRECTOR ASH SHAH TALKS THE IMPORTANCE OF PARTNERS AT AXA 19

and store and manage data on private

allows an organisation to innovate. “It

and public clouds. This is a key strategic

gives us business agility, flexibility and

initiative which AXA is taking on for two

speed to market which is much harder

key reasons. “One is that we want to

in traditional IT methods. In addition,

modernise and update our technology

the cloud enables the collaboration

infrastructure,” says Shah. “The second

that is so key to a global business. As

is that we really want to exploit new

we deploy something in one country,

technology innovation – such as artificial

we can replicate that quickly in multiple

intelligence (AI), chatbots and image

countries,” Shah explains. “We therefore

recognition – which we wouldn’t be

end up with a consistent product which

able to do with our existing systems

we can enhance and change – and those

and processes.”

changes can be rolled out across numer-

For Shah, and for AXA, a key feature of cloud technology is the speed at which it

ous entities and organisations far more quickly than in the past.” e uro pe .busi ne ssc hief. com

AXA

“ The relationship we build with our suppliers – and I would call them partners rather than suppliers – is very important to us” — Ash Shah, Global Program Director – Move to the Cloud, AXA

20

Why is AXA undertaking such a significant investment? “Firstly, it’s for

to be able to respond to this change in a customer-centric manner.”

customer experience. We deal with

Every technology investment AXA

customers through an omnichannel

makes involves extensive thought into

process: they need to have consistent

how it will impact the customer. “We

experience.” For example, customers

make sure there’s really a business

may wish to deal with a claim over the

driver and value for what we’re investing

phone and then switch to live chat.

and innovating in. We then start with

“We need to be able to receive data and

a proof of concept, idea and trial before

respond to it in all manners, shapes and

we really push something.” AXA’s cloud

forms. Customers today are expecting

program is a prime example of this. “We

a different experience of working with

have to build new features, new products

a global insurer,” Shah adds, citing

and new ideas onto the platforms.

omnichannel as a key driver. “We need

There we have the voice of the customer

MARCH 2019

TECHNOLOGY

CLICK TO WATCH : GLOBAL PROGRAM DIRECTOR ASH SHAH – HOW AXA MOVED TO THE CLOUD 21

to drive the demand and the prioritisa-

“We foster a strong change management

tion process. Then their voice is heard.

process where we make sure we

They drive the change agenda.”

communicate, evangelise and onboard our colleagues in all parts of the organi-

A TEAM EFFORT

sation,” says Shah. “That’s one of our

With the agenda driven by customers, it’s

key success factors in implementing

important that each and every member

a lasting change.”

of AXA’s 160,000-strong colleague base

This is not always easy given that AXA

is on board in order to promote the best

is dealing with new technologies and

service to every customer. Managing

working across a plethora of different

a significant change, and the shift in

locations, but Shah maintains that it’s

culture it brings, across such a mam-

possible with a combination of training

moth organisation is vital to make things

and open communication. This is not

work all the way to the end customer.

just looked at in terms of individual jobs, e uro pe .busi ne ssc hief. com

AXA

but in terms of the key part each employee plays in AXA’s journey as a global organisation. The transformation so far has not just been successful in terms of IT, but far beyond this, including the people and culture at the company. “We have an extensive change training program for all of our colleagues where we’re working extensively to make sure they are all aware of what the cloud journey is, what AXA is undertaking, and why. It’s also important the program has the sponsorship of our management committee, and it is discussed and agreed – which then helps cascade the information and messages 22

around our program.”

AXA’s move to the cloud involves not just thousands of employees, but a network of strong partners too – and all must be aware of the company’s long-term vision. “We are not technical experts in all domains and areas we’re undertaking as part of our move to the

“ The cloud gives us business agility, flexibility and speed to market which is much harder in traditional IT methods” — Ash Shah, Global Program Director – Move to the Cloud, AXA MARCH 2019

23

cloud journey,” Shah admits. “So the

Other important delivery and consult-

relationship we build with our suppliers

ing partners include Capgemini and

– and I would call them partners rather

Deloitte who are also supporting AXA

than suppliers – is very important to

on this journey.

us.” AXA has worked with some of

Shah makes it very clear that AXA

the biggest names in tech as part of

isn’t just buying off-the-shelf solutions

maintaining a secure yet efficient cloud

but is growing alongside each of its

transformation – from IBM with its

key partners in a sustainable relation-

private cloud provider to AWS and

ship. “We’re undertaking a multiyear

Microsoft Azure for its public cloud

commitment. They’re on this journey

journey. Innovation projects have also

with us.” Another element the above

been supported by Google Cloud.

names have in common is famously e uro pe .busi ne ssc hief. com

AXA

24

MARCH 2019

TECHNOLOGY

secure service – something which is paramount for any organisation, but especially within the insurance industry. “A few years ago, the reason people didn’t move to the cloud was security. Now, organisations are actually moving to the cloud due to the security provided by the likes of IBM and Microsoft Azure. They have some of the best security experts out there. Their business is built on secure, trustable platforms – they would be out of business if their platforms were not secure.”

Handling the kind of sensitive data AXA deals with on a daily basis means security is something Shah and his team don’t take lightly. “We need to ensure we have robust processes on our side. We are selective with what we put into the cloud, especially from a compliance and regulatory purpose.

Cybersecurity is one of the key drivers of this program,” Shah explains, adding that the global insurance behemoth has a strong legacy to maintain. “Our brand value is particularly important – when you’re buying insurance, you’re also buying a trusted brand.”

A FUTURE IN THE CLOUD Following AXA’s success on its journey to the cloud thus far, Shah believes that other organisations will follow suit – or risk being left in the dust. “Cloud technology is going to e uro pe .busi ne ssc hief. com

25

AXA

AXA GROUP

€98.5bn Approximate revenue

1982 Year founded 166,000 The approximate 26

number of AXA employees

significantly disrupt the insurance

sations, such as AXA, concerned

sector, and the insurance value chain,”

about the rise of fintech and in-

he predicts. “Cloud technologies and

surtech startups – but Shah believes

Insuretech partners will look at

these shouldn’t be perceived as

different parts of the value chain and

a threat. “Parts of our value chain will

come up with innovative ideas about

continue to be disrupted by cloud

how they can accelerate a certain

partners, innovators or insurtech

process – such as claim notification or

companies who will come in with

risk modelling.”

solutions and ideas which don’t have

Across the finance and insurance

the resistance to change that larger

spheres, the rise of technology

organisations have to deal with,”

leaves many more traditional organi-

he comments.

MARCH 2019

TECHNOLOGY

gies through our AXA Next organisation.”

Along Shah’s journey to cloud transformation across the globe, the change will need to be continuously driven at all levels. “Hopefully we’re getting to a point where this communication and buy-in is becoming one of our key success factors. We measure that through KPIs. We’re at the point where we’re starting to become successful in promoting our program and moving forward with the migration– but we still have a long way to go.” Indeed, Shah cites the pace at which his team has accelerated buy-in across AXA. “In the last three of four months, we’ve seen more momentum than we saw in 15 months. That in itself is quite rewarding.

We’ve seen the adoption and deployHowever, an insurer like AXA which

ment of lots of our applications on the

is prepared to innovate and stay at the

cloud. Momentum is building and it

forefront of new technologies can

will just get better and better.”

only stand to benefit. “We need to embrace this as an organisation, look at our value chain, and see where we can utilise insurtech organisations to streamline, to be more efficient, more innovative, faster, and to deliver the change our customers are looking for.

We work with and invest in startups where we can leverage their technoloe uro pe .busi ne ssc hief. com

27

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LEADERSHIP

30

KEEPING UP WITH THE EVOLVING TELCO INDUSTRY BICS CEO Daniel Kurgan explains how the global telecommunications company keeps up with customer trends and demand,striving to improve quality and add value WRITTEN BY

MARCH 2019

SOPHIE CHAPM AN

31

e uro pe .busi ne ssc hief. com

LEADERSHIP

W

ith a core mantra of “think global”, BICS has increasingly embraced digitisation to meet the demands

of its evolving customer base. In recent years,

the telecommunications provider has expanded its operations outside of its domestic Belgian market, with offices spanning across the Americas, Africa, and Asia. “We are a telco for a telco. Our main business is to carry international telecommunications traffic for all the telecommunications companies and communications service providers,” informs Daniel Kurgan, CEO of BICS. The firm offers 32

mission-critical services to customers by carrying their voice, messaging, and homing traffic, enabling their customers’ users to make international calls, for example. The company’s network consists of fibre optics and submarine cables, and over the past 20 years, BICS’ customer portfolio has grown from mobile operators to cloud communication providers and telco software firms such as Skype. The Belgian business has also extended its offerings, ultimately seeking to pass information through its network to deliver more intelligent services to customers. “We deliver a whole set of value-added services such as fraud prevention and remediation, advanced reporting, traffic simulation tools like Steering of Roaming, marketing tools like Welcome MARCH 2019

“If you want to be relevant you need to excel in your very core traditional business. You need to build the services and the processes and adapt your way of working for the digital customer” — Daniel Kurgan, CEO of BICS

33

SMS, or data roaming control like bill shock prevention,” Kurgan adds.

The private-joint company belongs to three telcos – Proximus, Swisscom, and MTN. Until 2005, BICS was a division of Proximus, which remains the controlling shareholder. As a member of the firm’s Board of Directors, Kurgan has worked between Proximus, formerly Belgacom, and BICS for over 20 years.

The CEO claims to have always worked within international global environments with a focus on technology. “I’m a bit of e uro pe .busi ne ssc hief. com

LEADERSHIP

We have created hundreds of jobs which I think is an achievement for all of us.

We have also grown our profit five-fold and we’ve really managed to grow the business,” Kurgan notes. As the company expanded, it began to invest in new operations. At the end of 2017, BICS completed its acquisition of Telesign, the California-based leader in two-factor authentication through SMS. “Together with Telesign, we are creating an endto-end communication platform as a service. They have a huge range of customers who are dominating the market and work with 20 out of the top

34

25 internet brands.”

“However, the telecoms sector is fast a company veteran – I was at Proximus

changing – everyone can see the

when BICS became a new division and

industry has developed so much in the

I grew from there. I’ve got a lot of

past five years, with the growth of mobile

experience working and being surround-

internet and social networks,” Kurgan

ed by brilliant engineers and pretty

adds. “With this changing market and

complex technology environments and

business model, our biggest challenge

I guess that has helped me to run a telco,

so far is finding the best way to stay

which is a pretty complex business,”

ahead and be a pioneer in technology

Kurgan reveals.

evolution.” With the introduction of

Kurgan is proud of how far the com-

|new technologies, the CEO claims its

pany has come since he joined and

strategic purpose is to bridge the

BICS became its own division. “We are

telecom and digital worlds. With the

proud to say that since the inception of

amount of voice and messaging traffic

the company, the headcount has tripled.

generated by companies continuing

MARCH 2019

CLICK TO WATCH : ‘BICS – CONNECTING THE WORLD, ENABLING VALUE’ 35

to grow as a result of digital evolution,

says. “On the other hand, we are already

BICS enables firms to connect with

a very technically advanced company:

their end-user.

if you compare us with an average

When asked what digital transforma-

company in the industry, we are much

tion means to BICS, Kurger revealed

more digitalised and we have a Chief

that there was more than one meaning.

Digital Officer (CDO) to ensure this.”

“On the one hand, it is the trigger for

With the industry’s evolution, BICS is

a wider business shift, whereby tra-

having to adapt to new customer trends.

ditional telcos are struggling to grow

“Currently it’s all about cost containment,

amid newer competing platforms. Now,

cost containment, cost containment,”

like every company, we are impacted by

Kurgan states. “Customer demands

this transformation because we have to

are also becoming more complex. Ten

adapt our internal processes and the

years ago, we would just sell the console,

way we interact with our customers,” he

now customers ask for more. There is e uro pe .busi ne ssc hief. com

LEADERSHIP

36

“ The cornerstone of the transformation of the company is to keep excelling in the legacy while coping with the demand from digital” — Daniel Kurgan, CEO of BICS MARCH 2019

a constant fight to quality and to more value for money.” Despite growing demand, the company is able to continue to offer its expertise and excellence in service delivery. The business prides itself of the quality of the services it offers and its customer relations. “Everybody knows that we are not the cheapest on the market, but the quality of the service is our differentiator. If our customers have a problem, we try to resolve any issues

37

with the expertise we have in-house.

and technology giants, BICS will adapt

That’s how we address customer de-

and integrate the technology into its

mands and try to make a difference in

services, enabling its customers to use

the market today.”

it and roam with it. “So, that remains the

“If you want to be relevant you need to

very key challenge,” Kurgan says. “The

excel in your very core traditional busi-

cornerstone of the transformation of

ness. You need to build the services

the company is to uphold the legacy

and the processes and adapt your way

of the company whilst coping with the

of working for the digital customer,”

demand from digital.”

Kurgan explains. As technologies such as 5G are developed by manufacturers e uro pe .busi ne ssc hief. com

TECHNOLOGY

38

SOFTWARE ENABLING 5G Folke Rosengard, Head of Business Development, Nokia Software, explores how 5G serves as more than just an answer to the burgeoning IoT and digitalisation landscape WRITTEN BY

MARCH 2019

FOLK E ROSENGARD

39

e uro pe .busi ne ssc hief. com

TECHNOLOGY

W

e at Nokia believe that we are in front of one of the biggest upsides in the whole telco industry in a

long time, thanks to the digitalisation trend

and the Internet of Things (IoT). IoT will add a massive amount of new connections; and the digitalisation trend creates a growing demand for a multitude of diverse connections including use cases with high bandwidth, low latency and ultrahigh reliability.

5G is the ideal solution to respond to this demand, however 5G is much more than simply a new Radio Access Network (RAN) 40

generation. It comes with sophisticated software that affects all parts of the network, including how service providers operate the network and how they offer profitable and compelling services. It is a whole new business system that enables service providers to respond to the massive demand fuelled by the IoT and digitalisation trend in a profitable way.

5G requires a tight connection between network, operations and business with all the systems and processes working together to deliver and monetise the 5G use cases for consumers and enterprises. Software is the key for realising 5G capabilities in an efficient way. Technical capabilities such as dynamic slicing of mobile networks and a serviceMARCH 2019

41

“ 5G is the ideal solution to respond to this demand, however 5G is much more than simply a new Radio Access Network (RAN) generation” — Folke Rosengard, Head of Business Development, Nokia Software

e uro pe .busi ne ssc hief. com

TECHNOLOGY

“ We believe ‘Cloud Native software’ is a fundamental principle for software of the 5G era” — Folke Rosengard, Head of Business Development, Nokia Software

based architecture to enable multiple and diverse use case requirements based on agile, flexible and real-time digital fabric are critical for telcos to maximise and exploit 5G capabilities.

Network providers must have a strong digital fabric that’s built on applications with five key characteristics:

01. INTELLIGENT Analytics and machine learning in everything are critical to manage an ever-growing volume of data. Great experiences are the ones that are personal, contextual and fast. These

42

rely on the ability to augment human intelligence with machine learning and analytics. They use the data to provide a 360-degree view of the experience and decide what actions will produce the best outcomes.

02. AUTOMATED Manual processes are too slow to handle the big data explosion. As such, intelligence workflows and bots should push automation to extremes to ensure we can drive insights to action with efficiency and speed using closedloop fundamentals.

MARCH 2019

CLICK TO WATCH : ‘5G IN ACTION’ 43

03. SECURE

05. OPEN

With more of our lives online, customers

It’s unlikely that service providers will rely

must know they can trust their provid-

solely on one infrastructure vendor or

ers to handle their data. The new digital

partner, one revenue-sharing relation-

fabric must include security in its

ship or service. Applications must be

foundation to provide customers with

multi-vendor, open and lightweight -

the highest level of protection in the

and the complexity of the network must

digital world.

be removed or abstracted.

5G will enable a range of new use

04. CLOUD-NATIVE

cases with a variety of specific require-

To respond with agility at a better cost

ments. To support each use case in an

point, software needs to be built for the

optimal way, security capabilities will

cloud, from both the technological and

need to be more flexible. For example,

consumption-model perspectives.

security mechanisms used for ultra-low

e uro pe .busi ne ssc hief. com

TECHNOLOGY

44

latency, mission-critical applications may

We believe “Cloud Native software�

not be suitable for massive IoT deploy-

is a fundamental principle for software

ments where devices are inexpensive

for the 5G era. There are many benefits

sensors that have a very limited energy

of cloud native software for telcos,

budget and transmit data only occa-

including more efficient use of cloud

sionally. Another driver for 5G security

resources, operational simplicity and

is the changing ecosystem. Long-Term

horizontal scalability. Proven by

Evolution (LTE) networks are dominated

massive scale companies such as

by large monolithic deployments―each

Google, Twitter and Netflix over years

controlled by a single network operator

of use, horizontal scaling or adding

that owns the network infrastructure

more containerised applications within

while also providing all network

a cluster, enables providers to provision

services. In contrast, 5G networks may

the processing capacity they need to

be deployed by a number of special-

process data quickly.

ised stakeholders providing end-user 5G network services.

MARCH 2019

Managing and reducing the complexity, while keeping operation costs under

45

control, can only be achieved through

Today, automation is popping up

injecting intelligence and automation

almost everywhere in the network,

into the transformation process. As 5G

and “closed loops” are considered

extends beyond radio technologies,

silver bullets for killing complexity.

deep into the cloud, across mobile and

A recent study by Nokia Bell Labs

transport layers, it will be paramount

concluded that closed-loop automa-

to combine data from RAN and non-

tion can only work in combination with

RAN sources and introduce machine

a new architecture and – even more

learning-enabled automation to create

important – an implementation master

algorithms for use cases that operate

plan. The full benefit of automation can

across all these data sources.

only be realised if it’s done in concert. e uro pe .busi ne ssc hief. com

TECHNOLOGY

Small benefits can be – and are being – realised with tactical, domain-specific automations, but those benefits can only be maximised if harmonised and orchestrated across all domains.

As non-telco companies digitalise their own product offerings, new opportunities will emerge for telcos and service providers. With the new network characteristics of 5G and cloud resources sitting close to customers, these companies will be in a position to offer capabilities no 46

IT cloud service provider can match.

Software helps communication service providers to reinvent themselves as digital service providers.

A key in this transformation is to recognise the need for far greater agility with frictionless business and

“ With the new network characteristics of 5G and cloud resources sitting close to customers, these companies will be in a position to offer capabilities no IT cloud service provider can match” — Folke Rosengard, Head of Business Development, Nokia Software

MARCH 2019

47

operational adaptability. In other words,

product management, customer experi-

digital service providers need to act in

ence management, network and service

and capitalise on windows of digital

operations, care and monetisation.

time. To operate in digital time, service providers need a holistic and real-time view of what’s happening with business and operations to determine the next best action to take – this applies for all areas of operations from marketing to e uro pe .busi ne ssc hief. com

PEOPLE

48

REINVENTING UPSKILLING FOR THE FOURTH INDUSTRIAL REVOLUTION With Industry 4.0 underway, Nick Lazaridis, President of EMEA for HP Inc., explains how ultimately it’s the people behind the screens and machines who enable digital transformation NICK LAZARIDIS, PRESIDENT OF EMEA FOR HP INC WRITTEN BY

MARCH 2019

49

e uro pe .busi ne ssc hief. com

PEOPLE

50

T

oday’s world moves at a mind-

steps to build the organisation of the

blowing rate, and it’s only going

future. More than any that have come

to get faster. Emerging technolo-

before, the Fourth Industrial Revolution

gies like IoT, 5G, artificial intelligence and

holds the opportunity for businesses

3D printing have heralded the fourth ind-

everywhere to transform their impact

ustrial revolution and proven their pote-

on employees and, by extension, society.

ntial to change the status quo. But it’s

Looking back, the advent of new

down to us as business leaders to tran-

technologies has often been associ-

sform our workforces and equip them

ated with resistance and fear because

to make the most of this opportunity.

of the impact it might have on work-

There is a need for real innovation

forces and ‘business as usual’. The

and change across every market and

reality is that these new technologies

sector. It’s no longer just about gaining

are not a threat to work, but an oppo-

a competitive advantage, but taking

rtunity to automate the routine, repetitive

MARCH 2019

51

or low value tasks and apply valuable human resources to more creative and complex challenges.

Just as the PC changed the way we work, as well as the skills needed to get the job done, we are entering a new chapter of change that will surpass those before it in size, scale and scope.

The Fourth Industrial Revolution has the potential to create new, technologically-driven value en masse - but getting there calls for a human-centric approach and investment in people. It will look different to every business and

“ The Fourth Industrial Revolution has the potential to create new, technologically-driven value en masse – but getting there calls for a human-centric approach and investment in people” — Nick Lazaridis, President of EMEA for HP Inc

e uro pe .busi ne ssc hief. com

PEOPLE

“ A truly diverse representation of backgrounds, experiences and opinions helps challenge the status quo and allow new ways of thinking” 52

— Nick Lazaridis, President of EMEA for HP Inc

the extent of reinvention will vary, but there are some commonalities as to how we can build the skills of our organisations for the future.

MANY HANDS MAKE BRIGHT WORK The obvious business case for diversity is that it is key to attracting the best talent and engaging employees.

But it goes further than equal representation and fair opportunities.

A truly diverse representation of backgrounds, experiences and opinions helps challenge the status quo and allow new ways of thinking.

Real diversity of thought is becoming essential in the global economy, not just to attract the best talent but to integrate broader cultural understandings and add fresh perspectives and processes.

When you pair this with inclusive workplace culture, people feel more comfortable in bringing their true selves to work and their ideas to the table.

LEARN AS IF YOU WILL WORK FOREVER A real investment in learning and development is crucial to recruiting and developing a highly-skilled, future-ready workforce. Within the MARCH 2019

CLICK TO WATCH : ‘HP DEVICE AS A SERVICE (DAAS) PROACTIVE MANAGEMENT’ 53 technology sector, there’s an urgent need to diversify the STEM talent pipeline and bring new thinking to the fields of science that will shape our tomorrow. They are crucial cornerstones of the Fourth Industrial Revolution – and it’s only by ensuring fair opportunities and representation that we can consider them to be truly innovative.

The opposite is also true, however.

Across all industries, there is a growing focus on ‘soft’ and social skills, particularly around communication and emotional intelligence. These are the skills e uro pe .busi ne ssc hief. com

PEOPLE

that bolster creative thinking and complex problem-solving – the concepts that translate into a blueprint for services and solutions of the future. eLearning platforms and self-paced programmes have changed the way we can acquire and develop skills at work, but in order to engage employees in a shared mission those competencies must be underpinned by a culture of collaboration, knowledge and growth.

LEADING THE WAY 54

So how do you lead an organisation to transformation? Transform the leadership of the organisation. Put simply, business leaders must embody the values of the change they want to make.

HP itself was reinvented as a multibillion-dollar start-up, and we’re seeing our strategy pay off – but would be nothing without the strong and motivated teams behind the business. I’ve always tried to stick to my leadership principles to help create and foster that culture.

Managing cycles of innovation and regular organisational change are part of the job, but more substantial transformation and reinvention need vision, MARCH 2019

55

role models and commitment to successfully bring a workforce on the journey.

Transforming an organisation and building skills requires everyone to be open to change. Leadership teams need to lead the charge with wholehearted commitment and investment in their development, to set the best example for their organisation.

If we are to believe that the only constant is change, then there will always be a new skills gap to tackle.

Build a foundation for an organisae uro pe .busi ne ssc hief. com

PEOPLE

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“ This may well be a technologydriven revolution, but ultimately it is the people behind the screens and machines who make the change” — Nick Lazaridis, President of EMEA for HP Inc

MARCH 2019

tion that’s open to change, committed to learning and continuously improving, and not afraid to fail along the way, and you will build the basis for tomorrow’s industry.

This may well be a technology-driven revolution, but ultimately it is the people behind the screens and machines who make the change. As someone who has spent their career reinventing in a rapidly changing world, I’ve seen how it’s possible to transform an organisation with positive impact for people and planet. Technology might change the way things are done, but it is squarely within our power as the leaders of industry to think creatively and solve the challenges of tomorrow.

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

60

OPEN DATA ADDRESSING WORLD H U NGE R — SOLVING THE AGRICULTURAL CRISIS FOR A MORE SUSTAINABLE FUTURE WRITTEN BY

ANDRÉ LAPERRIÈRE, EXECUTIVE DIRECTOR, GODAN

MARCH 2019

61

e uro pe .busi ne ssc hief. com

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

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T

oday, hunger is bringing suffering to over 795 million people across the

economically undeveloped nation. Â The threat of an agricultural crisis is

globe. Those affected currently do

very much a reality across the globe.

not have access to enough food to live

Crippling costs, poor weather condi-

sustainably. Although a majority of this

tions and disease outbreaks have hit

population are based in the world’s

landscapes, farmers and businesses

most vulnerable regions, this does not

hard over the years and the potential

contain the issue within borders as

impacts can be tenfold. The UK for

food security issues are also residing

example, has suffered from record

in some of the most developed nations.

high temperatures, reported outbreaks

The UK is reportedly one of the most

of foot and mouth disease and is also

food insecure nations in the European

in the midst of an uncertain trading

Union, and it is by no means an

future as Brexit looms. In Africa, where

MARCH 2019

“ O PEN DATA CAN PL AY A CRITICAL RO L E IN HEL PING TO ACHIEV E THE SUSTAINABL E D EV ELO PM ENT G OAL S PRO PO SED

BY THE UNITED NATIO NS” — André Laperrière, Executive Director, GODAN

water conservation issues, malnutrition

example of these issues. The conti-

and hunger are still pertinent, climate and

nent’s farming industries have been

weather are one of the principal causes.

suffering due to the lack of shared

The agricultural industry is a volatile one,

information and data, most small-scale

from either ends of the globe. We are

isolated farmers in rural African

continuing to experience the struggle

communities are missing out on new

to meet the growing demands of the

and improved methods and best

consumer, to combat the fluctuation in

practices of farming and agricultural

supply, the instability of markets and

processes. This issue, married with the

the lack of investment in the agriculture

water contamination crisis affecting

industry in many nations.

sub-Saharan Africa - where only 16%

The agricultural crises in countries across Africa present a notable

of the population have access to clean water and have no access to critical e uro pe .busi ne ssc hief. com

63

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

information relating to water quality or weather data -demonstrates how there is the significant need for access to Open Data to help bring about an end to the crisis, save lives and create a more sustainable future.

Open Data has developed alongside technological advancements throughout the years. However, its potential impact on the agricultural space has rarely been considered a key solution to solving the food crisis. The potential for the use of Open Data to combat food issues can and should no longer

64

be ignored; not only because of the relevant historical data and the potential to increase production it can provide, but its usefulness in monitoring water supplies, anticipating changes in the weather and also sharing crucial information across borders so that nations can learn best practices from each other and prosper.

Through the use of satellite data, remote sensing and mapping, farmers, businesses and consumers in the agricultural industry can harness the most relevant and useful information to improve and adapt practices, make better decisions and ensure sustainMARCH 2019

CLICK TO WATCH : ‘ANDRÉ LAPERRIERE AT SWAT4HCLS CONFERENCE, ANTWERP, 3-6 DECEMBER 2018’ 65

“T H E R E I S S T I L L A LO NG WAY TO GO BE F O R E OPE N DATA ACCESS IS GLOBALLY ACCEPTED AND UTILISED” — André Laperrière, Executive Director, GODAN ability. Increasing access will trigger

Esoko, presents a prime example of

innovations that will bring both

the benefits of Open-Data access to

agriculture and nutrition to the next,

the industry by illustrating how mobile

higher level of impact, improving

phone technology can be integral to

efficiency, yields, competitiveness and

allowing farmers and their buyers to

ultimately increasing food security

access Open Data to obtain informa-

across the world.

tion to improve access to markets and

The Ghana-based organisation,

encourage fairer pricing based on e uro pe .busi ne ssc hief. com

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

66

shared feedback. By utilising Open

and thousands of families. Those using

Data to collect data on a national scale,

the technology can both collect and

the technology solution TradeNet was

input data regarding the selling price of

born, enabling farmers to share and

basic commodities, such as the prices

access data through SMS with

of seeds and fertilizers and send daily

customers and other farmers. This

updates to farmers through SMS. Thus,

data is obtained through existing

the farmers can determine their input

channels such as weather data

costs, increasing their selling profit by

channels and other basic technology,

utilising the information made available

to enable a self-sustainable business

to them. Now, more than 350,000

model combining data, farmers,

farmers have joined the Esoko platform

customers, markets/ dealers and

in 10 countries in Africa and it contin-

phone companies on an open system

ues to expand.

to benefit the livelihoods of hundreds MARCH 2019

In the West, countries such as The

“FOO D SEC URIT Y ISSU E S ARE AL SO RESID IN G IN SO ME O F T H E MO S T D EV ELO P ED N AT IONS ” — André Laperrière, Executive Director, GODAN

67

Netherlands are also benefitting from

In the south, the ‘digital divide’ has

the offerings of Open Data as more

played a huge role in agricultural crises,

web applications aiming to improve

as large industrialised farms are

accessibility to Open Data are unlock-

becoming more cost efficient and

ing valuable data related to historical

competitive, while the small traditional

weather patterns and food consump-

farmers are gradually bringing

tion data, accessible to those involved

themselves out of the markets. This is

in agriculture and the environment.

due to the large industrial farms/

Similar to the organisation in Ghana,

wealthy countries and businesses that

these applications are also user-gener-

already make efficient use of data to

ated, allowing farmers and those in the

improve techniques, products, market

agricultural sector to input data for all

access, rapidly increasing their

participants to see, allowing best

competitiveness in the world markets.

practices to be shared and adapted.

Open Data can play a critical role in e uro pe .busi ne ssc hief. com

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

helping to achieve the Sustainable Development Goals proposed by the United Nations. Open Data can help foster economic growth and job creation, improve efficiency and effectiveness of public services by allowing the cross fertilization and synergy of different industries, sectors and governments leading to new practices, new equipment and new technologies that in turn, lead to better yields and the stimulation of private and public economies.

68

This will in turn, improve government transparency, citizen participation and accountability through the sharing of data across communities and borders. Â However, there is still a long way to go before Open Data access is globally accepted and utilised. This drive and determination for it to be a success needs to be welcomed by respective governments and organisations across the globe and pushed to the top of the agenda.

With the correct approach and implementation methods in place, Open Data can have a high economic and social return on investment for MARCH 2019

“ N OW, MO RE THAN 350,000 FARMER S HAVE JO IN ED THE ESO KO PLATFO RM IN 10 C O UN TRIES IN AFRICA” — André Laperrière, Executive Director, GODAN

69

countries all over the globe and in all stages of development. Areas in Africa, Latin America, Asia and Europe have already demonstrated how increased access to data can help develop economies and farming practices, taking a significant step forward to achieving sustainability and solving the hunger crisis.

e uro pe .busi ne ssc hief. com

10 & 11 April RDS Dublin

#DTS19 dublintechsummit.com

CASSIE KOZYRKOV Chief Decision Scientist, Google

DTS19 SPEAKERS

MARTHA LANE FOX Founder, lastminute.com

DOUGLAS TERRIER NASA CTO

JEETENDR SEDHEV New York Times Bestselling Author

MIHAI ALISIE Co-founder, Ethereum

CITY FOCUS

72

City Focus

FRANK Home to Germany’s largest airport, tallest buildings and widest inner-city forest, Frankfurt offers the biggest and best of German culture WRITTEN BY

MARCH 2019

SOPHIE CHAPMAN

KFURT e uro pe .busi ne ssc hief. com

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CITY FOCUS | FRANKFURT

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F

rankfurt, often referred to as

olis, and a traditional streetcar called

Frankfurt am Main, is the

the Ebbelwei-Express can take you on

largest financial centre in the

a tour of what was once the home of

Eurozone – placing it as Germany’s

the famous writer Johann Wolfgang

financial hub. As well as offering a busi-

von Goethe.

ness-focused skyline, Frankfurt is also home to beautiful architecture such as

GERMANY’S TALLEST VILLAGE

the Kaiserdom and the Paulskirche.

The city offers all ten of Germany’s

The nation’s largest inner-city forest

tallest buildings, with the largest,

can also be found south of the metrop-

Commerzbank Tower, standing at

MARCH 2019

‘The district has derived the portmanteau of Mainhatten, which combines the city’s Main river and the comparison to New York City’s economic centre’

75

850ft high. In 1997, at the time of its

nickname of Mainhatten, which allu-

completion, the tower held the title of

des to the city’s Main river and New

the continent’s tallest building, until in

York City’s economic centre, Manhat-

2003 when The Shard was built in the

tan. Some of Germany and Europe’s

UK’s capital city. Locals often refer to

largest companies reside in Mainhat-

Frankfurt as “the tallest village in

ten, with a significant number operating

Germany” with the top 10 buildings

in the banking and financial sectors.

ranging from 545.6ft to 850ft, mostly

Commerzbank, Deutsche Bank, and

located in the central business dis-

DZ Bank have all located their head-

trict. The district has also gained the

quarters in the city, whilst Germany e uro pe .busi ne ssc hief. com

CITY FOCUS | FRANKFURT

and Europe have also located their central banks there.

DEUTSCHE BANK Deutsche Bank is the nation’s largest bank by total assets and the 15th largest bank globally. The firm operates in 58 markets across the world. The financial institution was established on three pillars: the Private & Commercial Bank, the Corporate & Investment Bank, and Asset Management. With its operations spanning commercial and 76

investment banking, the company is classified as a universal bank. The firm’s investment-focused operations mean it’s often described as a member of the Bulge Bracket, a phrase used to describe the largest and most profitable multinational investment banks in the world. Despite being founded in Berlin in 1870, the institution opened its first branch in Frankfurt in 1886 and relocated its headquarters to the city in 1957. The firm is currently based in the Deutsche Bank Twin Towers, often referred to as Debit and Credit, in the Bankenviertel district. The towers were built between 1979 and 1984 and were originally designed for Hyatt Hotel MARCH 2019

‘The central bank for the euro is based in Frankfurt’s Ostend.

The institution was established in 1998 by the Treaty of Amsterdam, which solidified the location through the treaty’ 77

Group, who cancelled plans for the buildings. The structure underwent a four-year renovation between 2007 and 2011, making the towers more environmentally friendly and fire safe.

EUROPEAN CENTRAL BANK The central bank for the euro is based in Frankfurt’s Ostend. The institution was established in 1998 by the Treaty of Amsterdam, which solidified the location in the city through the treaty. The bank changed its location in 2014 to a new e uro pe .busi ne ssc hief. com

CITY FOCUS | FRANKFURT

office designed by Coop Himmelbau,

iary of the Swiss food and drink firm, and

a Vienna-based architect. Construction

T-Systems, the IT services and consult-

for the site, which was to replace the

ing company, have also settled in the city.

Eurotower, began in 2008. With the high

“Frankfurt/Main is also home to many key

demand for bankers in the city, around

target industries, such as the creative

a quarter of Frankfurt’s citizens are

industries, IT and telecommunications,

now expats.

biotechnology and life science, logistics and industrial production,” claims Frank-

78

THERE’S MORE TO FRANKFURT THAN BANKING

furt Economic Development GmbH.

Despite banking being a very prominent

FRANKFURT AM MAIN AIRPORT

industry in Frankfurt, the city is also

With Frankfurt’s business-heavy life-

home to other major industry leaders.

style, the metropolis attracts a lot of

Nestle Deutschland, the German subsid-

visitors. The city is home to Germa-

MARCH 2019

CLICK TO WATCH : ‘URBAN LIFESTYLE – #VISITFRANKFURT’ 79 ny’s largest airport, which also ranks as the fourth largest in Europe. The building hosts 75,000 members of staff and last year 69.5mn passengers used the airport. 512,000 flights travelled through Frankfurt am Main Airport in 2018 and the site is also responsible for 2.2mn tonnes of cargo.

In regards to passengers, the 2,300hectare site is the third largest on the continent and the second largest for cargo. The airport is the main hub for Deutsche Lufthansa AG, the largest carrier in Germany. When including Lufthansa’s subsidiaries, the airline e uro pe .busi ne ssc hief. com

CITY FOCUS | FRANKFURT

‘ As well as the largest buildings and airport, located towards the south of the city is Germany’s widest inner-city forest’ 80

MARCH 2019

is also the largest in Europe. The transport company, Fraport AG Frankfurt Airport Services Worldwide, operates the airport.

GREENERY As well as the largest buildings and airport, located towards the south of the city is Germany’s widest inner-city forest. The woods were acquired from Kaiser Karl IV by the city in 1372.

Stadtwald Frankfurt, or the Frankfurt City Forest, is the largest communal forest in Germany. Sitting on almost 5,000 hectares of land, the forest is located in the Schwanheim, Niederrad, Sachsenhausen, Oberrad, and Flughafen districts, and covers a third of the city’s territory. Within the greenery are numerous rest huts, playgrounds, and ponds, attracting both tourists and residents. Paths running throughout the space create a 450km network combined.

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T O P 10

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MARCH 2019

TOP 10 Smart cities in Europe The European Commission defines a smart city as “a place where traditional networks and services are made more efficient with the use of digital and telecommunication technologies for the benefit of its inhabitants and business�. Here is a list of the top 10 smartest cities in Europe, according to the IESE Cities in Motion Index (CIMI) WRITTEN BY

SOPHIE CHAPMAN

e uro pe .busi ne ssc hief. com

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T O P 10

10

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Oslo NORWAY The capital city of Norway is currently executing the Smart Oslo initiative that aims to deliver “a smarter, greener, more inclusive and creative city for all citizens.” The strategy is targeting connectivity, sustainability, and innovation. Secure communication technology and Internet of Things (IoT) solutions are being integrated into the city’s core operations – such as governance, citizens’ services, energy management, waste management, water management, urban mobility, education, industry development, welfare and healthcare and other community services. Norway is a leading nation in the electrical vehicle industry, and its capital is reflecting this by testing electric buses.

www.oslo.kommune.no MARCH 2019

09

85

Helsinki FINLAND Helsinki is focusing on digitalising industries and creating user-focused services – Finland’s capital wants to ensure its region keeps its title as a world leader in utilising public information. The city won joint first position in the European Capital of Smart Tourism Competition in 2018. Helsinki has also been commended for its startups, digital transportation services, and smart city government. “Helsinki’s vision is to be the most functional city in the world. The success in many comparisons shows that we are going in the right direction.

The utilisation of digitalisation is a significant success factor for Helsinki,” stated the city’s Mayor, Jan Vapaavuori.

www.helsinkismart.fi e uro pe .busi ne ssc hief. com

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08

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Vienna AUSTRIA “Smart City Wien has set the goal to successfully overcome the challenges of the 21st century,” claims Vienna’s smart city strategy.

The initiative has taken a long-term, holistic approach to transforming the Austrian city – by 2050, Vienna wants to ensure the best quality of life and minimise consumption and resources, as well as sitting in the top five research and innovation hubs in Europe. The city is focusing on buildings, digital, education, energy, environment, health, innovation, location, mobility, and social affairs.

www.smartcity.wien.gv.at

MARCH 2019

07

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Stockholm SWEDEN On 3 April 2017, Stockholm’s council implemented a digitisation strategy to increase smart city adoption. The Swedish city argues that the increased rate of people leaving rural areas for cities should encourage technology advancements to increase opportunities. “Anything that can be digitalised will be digitalised,” claims the City of Stockholm. Hundreds of projects are currently underway, including smart bins, which use technology powered by solar to report data, smart lighting, and traffic control.

www.international.stockholm.se

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06

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Copenhagen DENMARK “The smart city Copenhagen is a living laboratory for testing smart technologies to handle the challenges of urbanisation and climate change,” states Copenhagen Capacity. The greater district of Denmark’s capital has collaborated with academia, the public sector, and industry to test and develop projects. Copenhagen’s startups are attracting investments into the city, with around 250 firms contributing to smart city activity.

www.copcap.com

MARCH 2019

05

89

Berlin GERMANY Berlin Partner für Wirtschaft und Technologie GmbH regards the city as a “laboratory for efficient infrastructure, informational networking, sustainable mobility and creativity.” Germany’s capital aims to anticipate trends and use ICT to introduce efficient solutions, focusing on the energy, transport, mobility, logistics, healthcare, and photonics sectors. The Smart City Berlin Network was established to promote the city’s strategy, and features over 100 firms and institutes.

www.berlin-partner.de

e uro pe .busi ne ssc hief. com

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Amsterdam NETHERLANDS Featuring in 10th position in the global ranking, Amsterdam has implemented several projects under its strategy. Circular Amsterdam has established a framework for innovation processes by increasing knowledge in the circular economy and understanding the transition from a linear to a circular economy. City-zen focuses on clean energies such as wind, sun, biomass, and geothermal.

These renewables will be integrated into buildings and systems through retrofitting, smart heating, and smart grids

www.amsterdamsmartcity.com

MARCH 2019

03

91

Reykjavík ICELAND The Icelandic capital has incorporated technology into its transportation to improve efficiency and usability. The Straetó app, which connects to the bus system, was launched in 2014 and has been downloaded 85,000 times. The city has also introduced an online consultation forum and a geothermal energy company. “The future of Reykjavík is now […] Let’s harness the knowledge at the Reykjavík Smart City Conference in Harpa and evaluate the opportunities ahead, everything from smart lamp-posts to self-driving cars,” states Smart City Reykjavík.

www.reykjaviksmartcity.is

e uro pe .busi ne ssc hief. com

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02 Paris FRANCE Mairie de Paris has created its strategy through three major objectives – The Open City, The Connected City, and The Sustainable City. The city aims to deal with issues such as urbanisation, resource scarcity, and climate change whilst rein92

venting Paris. France wants to reduce its greenhouse gas emissions in its capital city, as well as create more digital inclusion through technologies such as IoT. The firm Vincent Callebaut Architectures has released plans to introduce plant-embedded smart architecture, known as Paris 2050.

www.api-site-cdn.paris.fr

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01 London UNITED KINGDOM The UK’s capital city was ranked in second position globally, behind New York. Smarter London Together was launched by the city’s mayor in order to make London ‘the smartest city in the world’. The city’s boroughs and services will collaborate using tech94

nology. The strategy outlines five missions: design, data sharing, connectivity, skills, and collaboration.

The London Office for Data Analytics (LODA) programme will launch under the initiative to increase data sharing and collaboration.

www.london.gov.uk

MARCH 2019

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MARCH 2019

TECHNOLOGY

JOINTLY DRIVING DIGITAL TRANSFORMATION UNDER SAUDI ARABIA’S VISION 2030 WRITTEN BY

LAURA MULLAN PRODUCED BY

JAMES PEPPER

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

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SIEMENS

CTO AT SIEMENS SAUDI ARABIA, RAINER SPEH, EXPLAINS HOW THE FIRM IS GEARING UP FOR VISION 2030 WITH ITS IOT PLATFORM, MINDSPHERE

O

ur lives are more connected than ever before.

In fact, Gartner reports that consumers own on average four Internet of Things (IoT) devices

which communicate with the cloud whilst, globally, an 98

estimated 127 new devices connect to the internet every second. This cutting-edge technology is not exclusive to consumer goods; it is also upending industries across the globe. In sectors such as aviation, energy and manufacturing, connected IoT devices have quickly become the norm. But with reams of data and information at our fingertips, are we truly getting value from this information?

This is where Siemens has entered the fray with its latest innovative solution. Recognising that only a tiny fraction of industrial data is used and intelligently analysed, the technology giant has created MindSphere – a cloud-based, open IoT operating system which it likens to a ‘swiss army knife’ for IoT. It allows businesses to connect products, plants, systems and machines, equipping firms with the concrete application data that they can analyse and draw insights from.

MARCH 2019

TECHNOLOGY

99

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

SIEMENS

“ M INDSPHERE ISN’T JUST A PLATFORM, IT’S ABOUT CO-CREATION” — Rainer Speh, CTO at Siemens Saudi Arabia

As the first CTO of Siemens Saudi Arabia, Prof. Dr Rainer Speh says that MindSphere is much more than a system, it is a new way of thinking. “MindSphere isn’t just a platform, it’s about co-creation. With our MindSphere Application Centre, we work alongside our customers to address their specific operational needs and improve their processes,” he explains. “Together, we discover their pain points and co-create solutions that fit their needs.” Today, Siemens

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MARCH 2019

TECHNOLOGY

CLICK TO WATCH : ‘WHAT IS MINDSPHERE?’ 101 has 20 MindSphere Application

one roof, Speh believes that the firm

Centres serving 50 locations in 17

is driving the co-creation of digital

countries. These centres employ

solutions together with customers.

around 900 data specialists and

With Industrie 4.0 being a reality,

engineers and focus on the specific

many businesses see digitalisation as

needs of a sector. In the Saudi capital

an opportunity to drive productivity,

of Riyadh, Siemens’ MindSphere

efficiency, speed and quality in their

Application Centre is able to offer

operations. Siemens and its network of

digital solutions spanning several areas

partners are co-creating tailor-made

including ‘Industrie 4.0’, smart infra-

applications to suit industrial custom-

structure, smart cities, agriculture

ers. “When you’re getting information

including vertical farming, energy,

in real time, it’s important to have the

hydrocarbon industries and cyberse-

right tools to analyse and interpret this

curity. By bringing digital experts,

data,” Speh explains. “This is where

domain experts and customers under

data analytics, artificial intelligence (AI) e u r o p e . b u s i n e s s c h i e f. c o m

Introduction This is a Company wholly-Owned by the Saudi Electricity Company. It was Established on 1/1/2012, with a Structure that includes Five main Activities: Operations & Control, Maintenance, Planning, Engineering, and Technical Services.

Our Vision

To be among the ranks of leading international companies in electricity transmission by adopting the latest standards, systems and technologies.

Our Mission

Electricity transmission with high reliability and economic efficiency in a way that achieves optimal use of resources and supports sustainable development of the national economy.

Finance Terms Equity: 4.51

Asset: 37.42

Billion USD

Revenue 2.87 Billion USD

Transmission Asset data 1070 Substations

3,359

Transformers

Billion USD

Net Income:

0.51

Billion USD

409,999 Transformers Capacity (MVA)

80,817 Length of Lines (km)

71,000 Fiber Optic Cable (km)

EBIDTA: 2.26

Billion USD

Strategic Initiatives ASSET MANAGEMENT: National Grid SA intends to achieve the best Asset Management Performance per ISO 55000.

How to apply for Qualification?

SMART GRID: National Grid SA works on digitalization & Realization of modern network.

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TECHNOLOGY

and machine learning adds tremendous value. At the end of the day, it’s about drawing conclusions from this data. By using this data, we can monitor a whole plant or do predictive maintenance down to a single device. This is where we need to combine Siemens’ expertise with that of the client.”

Saudi Arabia is in the midst of a visionary transformation. With its eyes set on Vision 2030, the Kingdom is aiming to diversify its economy away

“ TOGETHER, WE DISCOVER THEIR PAIN POINTS AND THEN CO-CREATE SOLUTIONS THAT PERFECTLY FIT THEIR NEEDS” — Rainer Speh, CTO at Siemens Saudi Arabia

103 E XE CU T I VE PRO FI LE

Prof. Dr. Rainer M. Speh is Chief Technology Officer (CTO) of Siemens Ltd. headquartered in Riyadh, Kingdom of Saudi Arabia since 1 February, 2015. Before that he worked in the Infrastructure & Cities Sector as well as in the Business Unit Power Plant Controls of Siemens as their CTO for more than 15 years. From 1985 to 1999, he held several technical positions in the industry in Germany. He received his Professorship from the Technical University Kaiserslautern, Germany, in 2014 and is lecturing since 1996. He earned his PhD from the Technical University of Darmstadt in 1985, where he also studied Electrical Power Engineering from 1975 — 1980. Prof. Speh is the current Past President of the Power Engineering Society (ETG) within the Association for Electrical, Electronic & Information Technologies (VDE) of Germany. e u r o p e . b u s i n e s s c h i e f. c o m

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TECHNOLOGY

Rainer Speh welcomes MoMRA Minister to Siemens booth @KSASmartCities Conference 2017

105 from oil and establish globally competi-

economic and social development of

tive industries in fields such as renew-

Saudi Arabia for nearly 100 years, with

able energy, manufacturing, healthcare

offices in Riyadh, Jeddah, Dammam,

and smart cities. Speh believes that

Al-Khobar, Yanbu and Jubail. With this

Siemens is playing a key role in this

local expertise combined with its

Vision. “As part of Vision 2030, the

innovative MindSphere platform, Speh

Kingdom aims to diversify and establish

believes the firm is set to take this

new industries. It’s not just about

one step further.

diversifying local industry; it’s about

Just as digitalisation has turned

becoming a major exporter too,” says

books into e-books and music into

Speh. “There is no way around this

mp3 files, it has also allowed us to

without Industrie 4.0. This is what the

create digital copies of physical

Kingdom hopes to achieve, and this is

industrial assets. Known as ‘digital

what Siemens can deliver.” Indeed,

twins’, many companies are looking

Siemens has contributed to the

to keep pace with Industrie 4.0 by e u r o p e . b u s i n e s s c h i e f. c o m

SIEMENS

106

creating a real-time replica of their assets. This can help firms identify defects or show how they could improve operations and drive revenue. “If you design a new operation you can simulate it and optimise it with the help of IT,� adds Speh, noting how Siemens not only has MindSphere to offer but that it is also a market leader in areas such as automation and product lifecycle management (PLM). With this range of industrial expertise and its cutting-edge MindSphere platform, Speh believes the opportuniMARCH 2019

TECHNOLOGY

ties for Saudi industry are limitless.

Take the energy market, for example.

According to Vision 2030, the country’s energy consumption will increase drastically by 2030. The National Renewable Energy Program aims to substantially increase the share of renewable energy in the total energy mix, targeting the generation of 27.3 GW of renewable energy by 2023 and 58.7 GW by 2030.

To meet this growing demand, Siemens offers a range of renewable energy solutions, from wind turbines to lithium

SIDF, MCIT, MAC Workshop 2018

ion battery storage. Additionally, Speh highlights how the MindSphere IoT system monitors, analyses and optimises grids for grid operators and utilities.

“Vision 2030 is also about energy efficiency, another area where Siemens has strong IoT capabilities,” Speh says.

“We can also offer digital and practical solutions like more efficient electrical motors. Additionally, whether you want to remotely monitor your power plant, chemical plant, food and beverage industry, you name it – this is where MindSphere can come into play.”

Renewable energy is just one of the main sectors found in the Kingdom’s blueprint for 2030. “The country also aims to have three Saudi cities e u r o p e . b u s i n e s s c h i e f. c o m

107

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recognised in the top-ranked 100 cities in the world,” explains Speh. Saudi Arabia is already an urban nation with 82% of its citizens living in cities and so it will have to tackle issues such as transportation, energy use, air quality and more. Indeed, the UN forecasts that 70% of the world’s population will be living in cities by 2050, so in order to have healthier, more liveable and

+ 200 countries / regions

where Siemens operate MARCH 2019

relaxed lives, those cities will have to become more efficient – and smarter.

Siemens is well-versed in Smart City development and it believes that IoT, and indeed MindSphere, could help to

TECHNOLOGY

CLICK TO WATCH : ‘ANALYTICS ON MINDSPHERE’ 109 transform urban life and infrastructure.

six lines with 67 Inspiro metro trains, an

“We are building air quality measure-

electrification system, and signaling

ment tools, but we’re also addressing

and communication equipment for fully

traffic jams and implementing variable

automated, driverless operation.

speed controls.” A transportation

Running on either public or private

system is the lifeblood of any city and

clouds, Speh also points to how the

it’s certainly been a key area of focus

Platform-as-a-Service (PaaS) is “easy

for Saudi Arabia. Riyadh has seen its

to deploy” and “less effort to maintain”

population double to more than

because of its cloud-based nature.

6 million inhabitants since 1990, and to

Nevertheless, at the MindSphere

address traffic congestion, it is working

Application Centre, it’s clear that it’s

on the world’s largest metro project

not about state-of-the-art technology

with a total route length of 175km.

as much as it is about state-of-the-art

Siemens has played a leading role in

thinking. Recognising that business

the metro project, equipping two of the

leaders know their organisations’ blind e u r o p e . b u s i n e s s c h i e f. c o m

SIEMENS

COMPAN Y FAC TS

• Siemens has 20 MindSphere Application Centres spanning 17 countries.

• By 2030, Saudi Arabia aims to generate almost 60GW of renewable energy.

110

• By 2030, Saudi Arabia aims to have three cities recognised in the top-ranked 100 cities in the world.

spots, bottlenecks and headaches best, “collaboration” and “co-creation” are words that best encapsulate the ethos behind the centre. “We sit down with clients and identify their pain

performance, maximise energy

points. They’re always different, and

efficiency and, ultimately, contribute to

there is always a potential to improve,”

Vision 2030. “It’s really about fostering

observes Speh. “Time-wise, effort-wise,

strong relationships,” adds Speh,

you name it – we’re offering change

“We have an ecosystem of around 200

management and helping them

companies now supporting us.”

become digital companies.” Through

It seems that Vision 2030 has offered

its centres, Siemens offers a space

Saudi businesses a fresh slate to

to co-design applications which aim

reshape their operations and sharpen

to optimise processes, speed up

their digital capabilities. This has

MARCH 2019

TECHNOLOGY

World’s largest gas turbine First “Made in KSA” at Siemens Dammam Energy Hub

111

encouraged companies to embark on digital transformation journeys, promote localisation, and nurture a more diversified economy. It’s an ambitious roadmap ahead, but with its MindSphere Application Centre, Siemens wants to co-create a better future with the Kingdom.

Riyadh Metro – the world’s largest metro project being executed

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

112

DIGITAL TRANSFORMATION AT UNIPER: A KEY PLAYER IN THE ENERGY FIELD BECOMING DATA DRIVEN WRIT TEN BY

L AUR A MULL AN PRODUCED BY

LE WIS VAUGHAN

MARCH 2019

TECHNOLOGY

113

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UNIPER

Embarking on a root-andbranch digital transformation, energy behemoth Uniper is showcasing the true power of data

W

ith about 36GW of generating capacity, Uniper has earned its stripes as one of the world’s largest global power genera-

tors. The Düsseldorf-headquartered firm was founded in 2016 after it carved out its own path 114

from E.ON and since then, it has grown to become a global powerhouse in the energy space, expanding its operations across 40 countries and attracting 12,000 employees to its doors. Technology has obviously played a vital role in this rapid ascension and, more specifically, Uniper’s data analytics plan has been a real tour de force.

When it first hashed out its digital roadmap Uniper set itself an impressive goal: to become a more data driven company. This may seem like a straightforward task – that is, if you don’t take into account the scale of Uniper’s operations. The company not only generates power, but it also procures, stores, transports and supplies commodities such as natural gas, LNG and coal, as well as energy-related products. With this in mind, Uniper has reams and reams of data at MARCH 2019

TECHNOLOGY

8.2 bcm Gas storage capacity

2016

Year founded

12,000 Approximate number of employees

e uro pe .busi ne ssc hief. com

115

UNIPER

its disposal – but how to draw real value from this was another challenge it needed to tackle.

The problem with data analytics, particularly at this magnitude, is that it’s often isolated and difficult to utilise enterprise wide. “Whether it’s power plants or gas storage, these sorts of assets are actually quite digitised already,” muses Dr. Stephan van Aaken, VP responsible for Digital Transformation of the Asset Business at Uniper.

“Nowadays you can hardly run a power plant without sensors or the industrial Internet of Things (IIoT) but none of

116

these are perfectly utilised. Often information is siloed and organised in different places which means the whole organisation can’t reach its optimum capability.”

There are many forward-thinking questions facing today’s utility and power giants. How much coal or gas do they E X ECU T I VE P RO FI LE

Dr. Stephan van Aaken Dr. Stephan van Aaken is Vice President of Asset IT, Architecture & Optimisation. His previous roles include Head of Asset Information and Head of Asset Power Market Risk. He graduated with an Engineering Degree from the RWTH Aachen.

MARCH 2019

TECHNOLOGY

CLICK TO WATCH : ‘UNIPER: NEW PERSPECTIVES ON ENERGY’ 117 need to produce today and in the future? Is the market going to pivot in a completely different direction? How can they maximise profit? These queries are daunting yet necessary, and by offering evidenced-based predictions data holds some of the answers. Yet, before you can draw any insights from data, it has to be organised. As such, Uniper sought to standardise the way it collected and organised data, which van Aaken aptly likens to “cleaning up the kitchen before you can actually start to cook your meal”.

“ Employees really bought into the technology because they could see it was really making their lives easier” — Dr. Stephan van Aaken, VP responsible for the Asset Digitalisation program e uro pe .busi ne ssc hief. com

UNIPER

118

Wanting to break down its data silos, the firm set about the mammoth task of reshaping its architecture. “We started to think about how we can drive value and money from our data at an enterprise scale,” explains Rene Greiner, VP of Data Integration. “From the first moment, it became clear we needed one fundamental thing: a ‘single point of truth’ whereby we can let data flow from one domain to the other.” To this end, Uniper worked closely with an intricate ecosystem of partners to create a cutting-edge data analytics MARCH 2019

TECHNOLOGY

platform. Over the past several years,

succeed,” Greiner affirms. Similarly,

the energy giant teamed up with

he praises Tableau’s “best in class

Tableau and Talend to integrate more

visual analytics capabilities” noting that

than 120 internal and external sources

it “perfectly supports Uniper’s digitisa-

into a Snowflake central data lake in

tion journey.”

the Microsoft Azure Cloud. Greiner

Embarking on a root-and-branch

speaks warmly of the strong partner-

transformation is no easy feat, but

ships Uniper has formed with Snow-

developing strong industry ties has

flake and Talend, highlighting how “it’s

helped Uniper sidestep any pitfalls.

different than a traditional partnership”.

This has not only applied to the way

“We’re very close to their network

the firm has overhauled its software

and in terms of knowledge sharing I’d

but can be seen in the hardware side

say we’ve created a very open-minded

of things too. “DXC Technology is

culture,” he says. “If we have a problem

really our backbone from an infra-

or a question, we can immediately get

structure point of view,” explains

in touch with them to solve it.” It’s this

Greiner. “We have a cloud first stra-

same ability to go the extra mile that

tegy but some parts you can’t put

led Uniper to adopt OSIsoft’s PI System

in the cloud and that’s where DXC

software. “They don’t want to just close

Technology comes in. They’re not

a deal and run off – they want to see us

just providing us with technology

E XE CU T I VE PRO FI LE

Rene Greiner Rene Greiner is Vice President Data Integration at Uniper. Prior to this, he had worked as Vice President Head of Information Management, Head of End of Day Reporting & Transformation Programme Manager and Head of Energy Economic Planning & Transformation Programme Manager.

e uro pe .busi ne ssc h ief. com

119

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Uniper’s Digital Journey When did the collaboration between DXC Technology and Uniper start?

The collaboration started eight years ago in the context of one of the largest IT outsourcing deals at that time — E.ON and HP. Since then we’ve established a trustful collaboration. After the separation from E.ON three years ago, Uniper continued to work with DXC Technology (DXC) to establish an IT landscape independent from E.ON and to enhance Uniper’s digital strategy.

How did DXC help Uniper shape their digital journey?

Uniper’s market environment faces a lot of disruption — for example, decarbonization, decentralization and digitalization. To stay competitive and secure its position as a market leader, the company decided to focus on the digital transformation and manage the change. Uniper saw the benefit of collaborating with a key partner like DXC, to use our professional knowledge about what “digital” means and to get guidance on their digital journey.

How did this collaboration evolve?

DXC’s performance in ENVISION workshops with the Uniper leadership team played a key role in getting started. The ENVISION team looked at how the company was adapting to the new era of digitalization.

Together they analyzed their current technologies, operating model and culture. This served as a basis for defining strategic options, developing a digital blueprint and helping to navigate the change process.

DXC also ran deep-dive meetings with Uniper and Leading Edge Forum. DXC’s Leading Edge Forum is a global research and thought leadership program dedicated to helping clients reimagine their organizations and leadership for a tech-driven future. It serves as a strategic touchpoint to challenge CXO teams and help them win in the 21st century.

A very important milestone was our Silicon Valley tour. This was organized and conducted by DXC to help Uniper’s leadership better understand the value of partnerships, ecosystems and outside-in thinking.

DXC introduced Uniper to several startups and the corporate innovation platform Plug and Play. This contact turned out to be a starting point for a fruitful cooperation between Uniper and Plug and Play Energy Hub. What are the benefits of DXC’s approach?

As business and IT become inseparable, virtually every aspect of work and the modern firm will need to be reimagined. This creates exciting new opportunities, as “digital” is a business-led transformation.

DXC’s industry-leading strategic partner ecosystem and forward-thinking approach result in a precise roadmap — connecting business with IT. This opens up business innovation for securing a leading market position.

How has DXC helped Uniper to enable its digital transformation, and what is the outlook?

Uniper has used DXC’s Digital Transformation Center to develop and implement key solutions. Uniper established its own Digital Lab based on DXC’s digital development framework and agile principles.

The DXC team has deployed Uniper’s new Digital Workplace, which is designed to enable enhanced collaboration and new ways of working for Uniper.

DXC’s Security experts also helped Uniper embrace cloud technologies and implement DevOps capabilities. The experts have helped set up new identity and access management services that enable Uniper to manage identity across the enterprise from a digital perspective. Uniper is also using platforms like ServiceNow to enhance the end-user experience.

With the help of DXC, Uniper is deploying digital solutions that will lead to new business models and new ways of working in the future.

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TECHNOLOGY

“ Our partners don’t want to just close a deal and run off – they want to see us succeed” — Rene Greiner, VP of Data Integration 123

though; they’re also supporting us as

highlights how the platform is empow-

a technology advisor.”

ering the workforce by giving them

Working with these industry leaders,

more input and control. “We’ve seen

Uniper is already reaping the fruits of

that this platform is bringing the data

its labour. Thanks to its data analytics

and people closer together,” he says.

platform, the company can supply data

“In the past, when you wanted to analyse

10 times faster and 10 times cheaper.

data you were kind of stuck. You needed

“In almost every process use case, we

to talk to IT professionals, set up a big

can also ‘free up’ people from data

project and then maybe six months

collection and processing,” Greiner

later you had the data you needed. This

says. “Because the platform is supp-

platform turned this around. It’s changed

orted by cloud technology, we can

our way of working significantly.” Speed

even reduce the cost of storing and

is another key advantage underlined by

preparing our data.” Van Aaken also

the pair. “In the past when we wanted e uro pe .busi ne ssc hief. com

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TECHNOLOGY

to integrate data it was an intensive, long and expensive process,” Greiner adds. “Today, we are able to do it within days if not hours. This drives value as you have more time to dig into the data and gain insight.”

Demand in the utility and power market fluctuates daily. As you can imagine, a colder winter season will see more people turning on their heating for longer spells, whilst a heatwave could see a spike in air conditioning use. By using predictive data analytics, Uniper plans to use its portfolio, safely, to its utmost capability. “A major driver of the profit-

“A major driver of the profitability of your portfolio is, of course, how you manage your assets” — Dr. Stephan van Aaken, VP responsible for the Asset Digitalisation program Combining data about how a com-

ability of your portfolio is, of course,

ponent was run with predictions about

how you manage your assets,” explains

the future energy market, Uniper can

van Aaken, noting that when the firm is

now forecast how power plants will run

planning to invest and maintain its assets,

in the future and when they will need to

it is doing so on a portfolio basis rather

undergo maintenance. Van Aaken likens

than looking at individual power plant

this to maintaining a car, noting: “You

sites. “We have a strategy for our power

could change the tyres of a car every

plant portfolio and the maintenance of

two years and you would probably be

our components,” he continues. “These

safe, but what if half of the time the car

components are stressed differently

is parked and you’re only driving short

according to how you operate your

distances within the city? Changing the

power plant, and that obviously depends

tyres every two years would be a waste

on the market and the strategy of the

and you wouldn’t be using up the life-

traders. Now, for each component, we

time of the components.” On the other

can collect data about how it is operating

hand, he adds: “What if the car suddenly

through our digitisation strategy.”

needs to drive longer distances the e uro pe .busi ne ssc hief. com

125

UNIPER

126

MARCH 2019

TECHNOLOGY

next year? Then you’d have to change the tyres more frequently. In power plants you have a similar system – you need to ensure that it’s well maintained.” By being able to see how changes in the market will impact its portfolio, this resourceful strategy is helping Uniper keep a close eye on its maintenance budget and capital expenditure.

This digital transformation journey has no finish line, and van Aaken and Greiner are proud of what Uniper has achieved so far.

For the business, it’s not just about technical advancements: Van Aaken points out how a vital piece of this transformation involved creating a culture shift and enabling the workforce. “In the end, one of the biggest challenges involved is around enabling the people,” he says. “In my lifetime, technology has developed more quickly than people can follow – it’s a game changer. It also means that technology changes quicker than people’s mindsets. We have to take care to ensure that people are ready to take on this journey because the people have the actual knowledge. If you lose them, then even your greatest product won’t help you.” This is perhaps best exemplified by Uniper’s hydro business, where workers now use mobile devices (which are linked to SAP Plant Maintenance) for daily maintenance operations. Working across different power stations, these e uro pe .busi ne ssc hief. com

127

UNIPER

workers often used pen and paper

the development of the app,” says van

when conducting surveys. However,

Aaken. “They really bought into the

this caused problems: it was laborious,

technology because they could see it

susceptible to human error, and ineffi-

was really making their life easier. This

cient. To change this, Uniper developed

strategy also focuses on the benefits

a seemingly simple app, where emplo-

for the people.”

yees could send their notes directly

When it comes to digital disruption,

to the SAP PM tool. “It’s interesting

Uniper is keen not to slow momentum.

because we included the workers in

The world of technology is unpredict-

128

MARCH 2019

TECHNOLOGY

able but over the coming years, one

one knows what is set to come in the

thing is certain: Uniper will work hard

future, but by preparing our teams and

to ensure that it maintains its position

our organisation, we’re well equipped

as a digitally savvy energy leader. “We

to take it on.”

want to carry on with this journey,” adds Greiner. “We need to make digital part of our DNA. We need to take our digitised legacy and move towards becoming a more digital business. No

129

e uro pe .busi ne ssc hief. com

130

TRAVELEX PUTTING PEOPLE AT THE CENTRE OF DIGITAL DISRUPTION WRIT TEN BY

OLIVIA MINNOCK PRODUCED BY

JA MES PEPPER

MARCH 2019

FINTECH

131

e uro pe .busi ne ssc hief. com

T R AV E L E X

132

Travelex’s Global IT Director Leonardo Tantari discusses the foreign exchange business’ technology transformation journey across a vast, rapidly changing landscape rom tourists paying for meals

the world of foreign exchange and

to multinational corporations

money on the move. In order to do so,

completing significant cross–

the FX giant is placing customer experi-

border transactions, Travelex has been

ence front and centre of a significant

there every step of the way for over 140

ongoing transformation – both in terms

years when it comes to foreign currency

of technology and people, which Global

exchange. Having progressed from

IT Director Leonardo Tantari says go

travellers’ cheques to digital payment

hand in hand.

F

platforms, the company can now be

Tantari joined the organisation in late

found in 1,200 Bureau de Change

2017, and has been leading the charge

outlets across over 100 airports in 27

in its digital transformation ever since.

countries. Now employing over 9,500

Previously working at Boots, and prior

people, Travelex is keen to remain at

to that Experian, the IT Director is

the fore of the changes encompassing

keenly aware of the challenges and

MARCH 2019

FINTECH

133

opportunities facing any organisation

an internal communications drive which

when it comes to a technology trans-

Tantari says is vital to managing the

formation journey, and has applied

changes and culture shift involved in

this in the financial services sphere

the company’s journey.

to develop Travelex’s instore, online,

“We’ve had a successful year in

mobile and ATM channels and solutions.

terms of delivery, from a development

Citing 2018 as a “fantastic year”, Tantari

perspective but also from a support-

spoke to us from Travelex’s Head Office

ability perspective,” says Tantari. “It’s

in Kings Cross where the previous day

been fantastic. We introduced single

he’d been recording a “five minutes

points of contact globally, with two

with” Q and A video for the company’s

employees winning awards at their

intranet. This, alongside various blogs

regional Diamond Balls held in January.

and newsletters, will be shared with

These were given in recognition of the

Travelex employees globally as part of

support they provided to their respece uro pe .busi ne ssc hief. com

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Leonardo Tantari, Global IT Director, Travelex

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T R AV E L E X

tive regions in 2018. We have brought

to automation, always with operation-

a tremendous amount of transparency

al efficiency and the ideal customer

so we are now in a fantastic position

experience front of mind. “One of the

where we can provide the right informa-

key activities we embarked on is cloud

tion to stakeholders.” Following on from

transformation – it brings us tremendous

this success, Travelex looks to the future

agility in the way we can respond to our

with excitement, and technology plays

customers and partners, as well as

a key role in its vision. “We have to

bringing significant savings.” This agility

ensure we have the right tech and the

has been instrumental in Travelex’s

right people to support the running

recent partnership with digital gifting

of the business,” Tantari explains.

platform, Swych, to introduce Travelex Pay, a unique service within leading

136

DRIVEN BY TECHNOLOGY

global mobile messaging app WeChat.

In terms of technology, Travelex is

The service is available to travelers

making strides utilising the latest

from mainland China who are visiting

advancements from cloud technology

the US – allowing them to purchase

“ WE ARE NOW IN A FANTASTIC POSITION WHERE WE CAN PROVIDE THE RIGHT INFORMATION TO STAKEHOLDERS” — Leonardo Tantari, Global Director of IT, Travelex

MARCH 2019

FINTECH

CLICK TO WATCH : LEONARDO TANTARI DISCUSSES A SUCCESSFUL YEAR DRIVEN BY COMMUNICATION

goods and services from a large network of retailers using their native currency. “This has been fantastic because it enables the Chinese community in the US to use a consumer offering from Swych, and it demonstrates that technology at Travelex can really integrate with a global technology partner. It shows tremendous effort in terms of how we collaborate, and how technology can transform the Travelex business.”

Travelex’s data science function is also instrumental in transforming the business, as it’s vital to be able to provide e uro pe .busi ne ssc hief. com

137

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www.ultima.com

FINTECH

CLICK TO WATCH : LEONARDO TANTARI ON THE IMPORTANCE OF TRAVELEX’S PARTNERS 139 insights to all stakeholders in order to

time for partners whilst providing

make informed decisions. “We use Big

enhanced security in the process.

Data in particular – but also AI,” says

“Automation removes some of the

Tantari. “One example is the building

human activities,” Tantari comments,

of our retail stock engine, which allows

“but it should be focused on removing

us to better distribute our retail stock

the more administrative types of tasks.

across our stores. That has been

Ultimately, we still need engineers to

a combination of using both Big Data

help us work and inform effective

and AI.”

automation – with that, the focus then

In addition, Travelex has made

moves to actually being part of activities

significant progress with automation,

which hone in on the real outcomes of

both in terms of improving time to

automation. This in itself is a change:

delivery as well as quality of output to

some people of course need to under-

customers and partners. Automation

stand their job has to change, but it’s

is also used to migrate data, saving

changing from being more task-orie uro pe .busi ne ssc hief. com

T R AV E L E X

CLICK TO WATCH : LEONARDO TANTARI TELLS US HOW CONSUMER BEHAVIOUR IS CHANGING 140 ented to more outcome-focused,

in terms of how we are set up, which

which is critical.”

sometimes means changes. I firmly

Throughout these new developments

believe the key to any successful

which are driving increasing efficiency

change is communication: explaining,

at Travelex, the importance of people

embedding the change, and motivating

can’t be underestimated. Recently,

along that journey.”

Travelex went through a successful

With a presence across six continents,

restructure of its technology team.

a regular dialogue between the technol-

Tantari says this was necessary to

ogy team and the wider business is vital

ensure the right people were covering

in ensuring everyone in the organisation

the necessary disciplines Travelex had

understands the technology journey

identified as those that would help drive

they are on – and it’s clear Tantari is

its future strategic ambitions, both in

passionate about the team he has built.

technology, and as a business. “As any

“Travelex is a really exciting environment

organisation, we look at how to improve

with a lot of opportunities, but with

MARCH 2019

FINTECH

change comes the corporate responsibility to bring along our employees,” he explains. “Communication is something we constantly review from both a people perspective and a technology perspective. We’ll continue to do that with the introduction of more collaborative, innovative tools like improved telepresence, chatbots and video conferencing.”

CONSUMER DEMAND ACROSS A CHANGING LANDSCAPE The main driver of Travelex’s transformation has of course been the customer experience, as consumer behaviour

141

changes rapidly. “We are seeing a big shift,” Tantari comments. “People are moving from using cash and banknotes to more digital solutions. Ultimately, E XE CU T I VE PRO FI LE

Leonardo Tantari Leonardo Tantari has a depth of experience in leading business transformation (including Agile and Digital B2C & B2B transformation), and joined Travelex from Walgreens Boots Alliance. As Global IT Director he oversaw their holistic IT portfolio, driving delivery for all areas from retail and supply chain through to the commercial, whilst spearheading the creation and delivery of a new digital strategy.

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“ I FIRMLY BELIEVE THE KEY TO ANY SUCCESSFUL CHANGE IS COMMUNICATION: EXPLAINING, EMBEDDING THE CHANGE, AND MOTIVATING ALONG THAT JOURNEY” — Leonardo Tantari, Global Director of IT, Travelex

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T R AV E L E X

there’s a shift toward self-service – that’s where we’re really focusing from a technology perspective. Customers nowadays are looking for a smooth and seamless journey when it comes to actually transacting with any company or organisation. It’s key for us to understand different types of customers: for example, our offline customers versus online customers.

“We have a presence online, on mobile and ATM, and we are leveraging technology such as online chat, but we always maintain a large number of 144

stores on the high street and in airports – that’s really significant to us,” he adds.

“Retaining the ability to ultimately speak to a person and offer the reassurance that the transaction is secure, as well as for us to really know our customer, is critical as it is for any financial institution.”

“ PEOPLE ARE MOVING FROM USING CASH AND BANKNOTES TO MORE DIGITAL SOLUTIONS. ULTIMATELY, THERE’S A SHIFT TOWARD SELF-SERVICE” — Leonardo Tantari, Global Director of IT, Travelex

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145

As with most companies and particu-

us to be ahead of the game, in relation

larly those in the financial services

to the products and services we offer.

industry, security is at the heart of

We have to meet rigorous, stringent

Travelex’s operations. “It’s something

requirements when it comes to security.”

we review constantly across our land-

These stringent requirements carry

scape,” says Tantari. “This year we will

across not only Travelex’s vast land-

see a significant change in the space.

scape, but its network of partners and

We are piloting a set of tools which we

clients as well as the industry becomes

will test to determine if they are able

increasingly open. “It’s inevitable: you

to detect incoming regulatory require-

can’t deliver everything by yourself,”

ments across the globe– that will enable

Tantari comments. “You need to work e uro pe .busi ne ssc hief. com

T R AV E L E X

1976

Year founded

9,500

Approximate number of employees

146

with customers, partners and suppliers

distributed network we need to support

– the key is to understand how we best

– after all, we have over 9,500 employ-

use the technology, and whether we

ees dispersed globally across six

have to build it for ourselves or buy it.

continents. We rely on partners such

We really ask our partners to adhere

as Ultima and CDW for provision of

to stringent requirements when they

hardware, software and support

come on board.”

across a number of systems to enable

Of these partners, two vital organisations are Ultima and CDW. “The world

us to deliver the best services for our customers and employees.”

we live in now is about integration, the ability to use API to call other services –

A CHANGING LANDSCAPE

therefore, it’s fundamental that we have

Making this transformation work across

a fresh, open and aligned relationship

their global estate, as well as a substan-

with our partners. We have a very large

tial network of clients and partners, has

MARCH 2019

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147

been no mean feat – but Tantari is

everything we do. I believe that in every

confident about the journey so far

organisation technology will eventually

as collaboration remains key. “Our

have a platform and transform their

Commercial Directors are supported

business. Connectivity, but most

by a local presence from our support-

importantly the way we share informa-

ive functions, and we also ensure we

tion, will become critical – changing, of

have a close relationship with those

course, in a safe, secure and efficient

Commercial Directors in order to drive

manner,” he adds.

not only the global agenda but the local agenda,” he explains.

“I think as we move into the future of connectivity, with talk of blockchain and digital currency, services will become seamless and API will be at the heart of e uro pe .busi ne ssc hief. com

148

EMBRACING TECHNOLOGY IN THE AVIATION SECTOR AT AIR MALTA SE AN GA LE A-PACE WRIT TEN BY

PRODUCED BY

LE WIS VAUGHAN

MARCH 2019

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A I R M A LTA

Alan Talbot, Chief Information Officer (CIO) of Air Malta, discusses how his company is embracing technology amid its digital transformation

T

he importance of adapting to the latest digital trends is fundamental to the sustained success of compa-

nies worldwide. With technology having an increased influence on the way firms conduct their operations, it’s vital to continued growth that companies acclimatise and respond.

150

Alan Talbot, Chief Information Officer (CIO) of Air Malta, is responsible for overseeing a large-scale change in operation amid his company’s digital transformation. Since joining Air Malta in December 2014 originally as Head of ICT, Talbot transitioned to becoming Deputy Chief Information Officer in September 2015 before moving into the role as CIO just over a year later in 2016.

“I’ve been in technology for the past 21 years.

I come predominantly from the financial services, where I spent around 15 years occupying different posts,” says Talbot.

“I can say that my career spans across a number of different sectors sitting on either side of the table, both as a customer and as a solution or service provider. That has MARCH 2019

TECHNOLOGY

€220mn Approximate revenue

1974

Year founded

1,000+

Approximate number of employees

45th

Anniversary in April 2019

e uro pe .busi ne ssc hief. com

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A I R M A LTA

152

helped me in my current position

order to thrive in a competitive in-

to have a diverse and more holistic

dustry, it’s vital that companies adapt

view towards what is required in

to the latest trends to continue to

managing a department, technology

achieve success. Talbot believes that

and people.”

the aviation industry is transforming

Air Malta operates a modern fleet

on an ongoing basis. “The industry is

of aircraft and operates to various

fantastic, and somewhat unique –

destinations in Europe, North Africa

glamorous, dynamic and ever so de-

and the Eastern Mediterranean. In

manding – it never offers respite

MARCH 2019

TECHNOLOGY

153

and constantly demands the best out of you. It’s not similar to the financial services where there is a bit more brand loyalty and legacy in terms of relationship; it makes things a bit more challenging when it isn’t the case. Due to the issues and challenges you face; it’s important to be on your toes. You have to look for any oppor-

“ The industry is fantastic, and somewhat unique – glamorous, dynamic and ever so demanding – it never offers respite and constantly demands the best out of you” — Alan Talbot, Chief Information Officer, Air Malta e uro pe .busi ne ssc hief. com

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TECHNOLOGY

CLICK TO WATCH : ‘AIR MALTA’ 155 tunities that might come along while, at the same time, keeping operations running as well.”

EMBRACING TECHNOLOGY In order to thrive, companies must find unique ways to innovate or risk allowing competitors to take the initiative. Talbot believes innovation and technology are regarded as key areas at Air Malta and defines the way they operate. “If we don’t innovate then we’re out of business.

We have to constantly change in order to challenge the status quo. Innovation is the only way to survive. I believe we

“ If we don’t innovate then we’re out of business. We have to constantly change in order to challenge the status quo.

Innovation is the only way to survive” — Alan Talbot, Chief Information Officer, Air Malta e uro pe .busi ne ssc hief. com

A I R M A LTA

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MARCH 2019

...

TECHNOLOGY

157

were very slow a few years ago and were

an API led economy. Air Malta has im-

lacking innovation,” says Talbot. “Only

plemented MuleSoft, an API and integ-

through change can we actually survive;

ration platform provided by a leading

we can’t afford to stand still and remain

application network company, in a bid

as we are. Technology has helped to

to create integration between all tech-

become the ultimate enabler in which

nical points and partners, ultimately to

we can drive and create change. The

position itself at the center of the entire

results speak for themselves.”

ecosystem. “MuleSoft had one of the

With the firm undergoing a signifi-

most holistic and enabling platforms

cant digital transformation, Talbot has

whereby even the most non-technical

overseen a complete overhaul of the

personnel could create connectivity

company’s IT infrastructure, insourced

and develop integration,” he explains.

services previously outsourced for

“We have partnered with Ricston, a

increased agility and has embarked on

local implementation partner for the e uro pe .busi ne ssc hief. com

A I R M A LTA

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MARCH 2019

TECHNOLOGY

“In order to achieve sustainability, we must never underestimate our position and size within the market. We need to be realistic about our capabilities and never be afraid to dream and try” — Alan Talbot, Chief Information Officer, Air Malta

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A I R MMAALTA LTA

successful design and deployment of

momentum. This was something that

our Hybrid Integration Platform, and

we were seriously looking at as we

we are still collaborating till this day in

wanted to start capitalizing on the

delivering high quality integration

investment we did and maximize the

projects by utilising this technology.

opportunities that come around on

The fact that we could rely on a local

a commercial basis.�

partner to support us in this delicate

To help achieve its success, Air Malta

part of our strategy was essential in

has partnered with Lufthansa Systems

gaining stability and building up the

to help with the implementation of the

160

MARCH 2019

TECHNOLOGY

company’s leading solutions. “We have

sever integration abilities, so our

significant synergies with Lufthansa

partnerships have been very impor-

Systems when it comes to defining

tant to us.”

certain operational and commercial

The company has also formed a close

related technology,” says Talbot. “They

relationship with Salesforce; a leader

provide one of the best flight planning

in CRM solutions for customer profiling

solutions on the market and this was

and customer data retention. “It has

something that we couldn’t possibly

become extremely essential for our

achieve in the past because we lacked

processing and handling anything that

161

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A I R M A LTA

“ Technology has helped to become the ultimate enabler in which we can drive and create change.

The results speak for themselves” 162

— Alan Talbot, Chief Information Officer, Air Malta

is related to customer-oriented services.

We use it for social media listening, marketing and managing our sales pipeline as well. It has become part of Air Malta and we consider it as part of our core.”

REMAINING SUSTAINABLE With a population of approximately 460,000 people (2017), running a successful business in Malta is challenging due to the small size of the country.

However, Talbot believes Air Malta is well-placed in its position in the field.

“We consider ourselves to be a hybrid airline because we aren’t legacy or low cost. But we do offer services at either end of the spectrum as well as being a company that is publicly owned, having a social and corporate responsibility,” explains Talbot. “Being an island, having our own national airline is not only a measure of pride, but also of survivability. For us Maltese it is the only publicly owned means of transport or connectivity to the rest of the world. However, at the same time, you need to be sustainable because you can’t rely on public funds in order to survive and operate.”

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A I R M A LTA

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In order to remain sustainable, it’s important that companies aren’t content to stand still. Talbot believes that by harbouring aspirations of achieving sustainability, Air Malta must continue to push the boundaries of its capabilities to enhance its position as a leading airline in Malta, and beyond. “Sustainability is extremely difficult to achieve, especially in an organisation of our size. During the last year financial year we’ve managed to achieve profitability MARCH 2019

TECHNOLOGY

after a number of years, during which we grew in capacity and capability.

We need to ensure that this isn’t a oneoff situation and that we have actually found the right formula for achieving continued financial sustainability,” explains Talbot. “In order to achieve sustainability, we must never underestimate our position and size within the market. We need to be realistic of our capabilities and never be afraid to dream and try. These are values that this airline needs to endorse and embrace because if we have a vision and are capable of sustaining change as we have done in recent years, then we can all work together for something that has the potential to be much bigger.”

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Improving both customer and employee experience through digital transformation WRIT TEN BY

M ARCUS L AWRENCE PRODUCED BY

LE WIS VAUGHAN

MARCH 2019

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CRODA

Croda International’s Chief Digital Officer Dave Cook discusses how digital transformation is driving the chemical manufacturer’s position as an industry leader

E 168

stablished in 1925, Croda is the name behind high performance ingredients and technologies in some of

the world’s biggest and most successful brands: creating, making and selling speciality chemicals that are relied on by industries and consumers everywhere.

Croda has a network of over 4,500 passionate and committed employees, working together as one global team across manufacturing sites and offices in 38 countries. A FTSE100 company with a flexible structure, the business has focused on developing and delivering innovative, sustainable ingredients that their customers can build on in: Personal Care, Health Care, Crop Care, Polymer Additives, Lubricants, Coatings & Polymers, Geo Tech, Home Care and Industrial Specialties.

Named among Management Today’s top three most admired companies in the UK, MARCH 2019

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“ We’ve put more emphasis on digital and there’s a certain positivity about the fact we’re on the journey” — Dave Cook, Chief Digital Officer, Croda International 170

MARCH 2019

Chief Digital Officer Dave Cook says this success in the public eye has been facilitated by a deeply ingrained ethos of customer centricity. “Croda prides itself on its customer focus: customer intimacy, innovating with customers, having the right products, and providing the right services,” he explains.

This drive to improve the customer experience in all its forms is the basis for the firm’s commitment to digital transformation. Cook joined Croda in January 2018 and has since led the company’s digital strategy through this

TECHNOLOGY

CLICK TO WATCH : ‘INTRODUCTION TO CRODA’ 171 exciting time. “One of our goals is to become a digital leader within the industry,” he says.

While remaining customer centric, Croda also places considerable importance on the employee experience, and its positive culture surrounding digital transformation exemplifies this focus. “Over the last 12 months, we’ve put more emphasis on digital and there’s a certain positivity about the fact we’re on the journey. Having the buy-in of the employees comes from that commitment to improving their experience alongside the customer experience,” he explains. e uro pe .busi ne ssc hief. com

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STRATEGIC PARTNERS

website, driven by the manufacturer’s

Croda’s approach to IT vendor man-

strategic partnership with Sitecore.

agement positions vendors as strategic

“There’s been a general revamp of our

business partners, fostering relation-

web presence through the Sitecore

ships that maximise value. SAP has

Experience Platform,” Cook notes,

been fundamental to this approach

adding that Qlik’s analytical capabili-

ever since SAP ERP became its core

ties are augmented by Sitecore.

platform nearly 20 years ago. One of

“Sitecore comes with its own analytics

its first extensions was Qlik’s data

which, along with Google Analytics,

visualisation solution sitting on top of

enables us to understand what our

SAP Business Warehouse, which has

customers are doing in the digital realm

provided insights into daily operations

and how that influences their behaviour

and raised data literacy across the org-

further in the buying cycle.”

anisation significantly. However, more

The benefits of this tactile and well-

recently, the company’s focus has

presented web presence are bound-

shifted to marketing and sales.

Perhaps the most outwardly

less and began presenting themselves straight away. “We had an immediate

striking result of Croda’s digital

uplift in traffic,” Cook says. “The classic

transformation is its elegant,

KPIs you look for in web engagement

informative and easily navigable

all increased as the sites went live.”

E XE CU T I VE PRO FI LE

Dave Cook Dave Cook is Chief Digital Officer at Croda International Plc. He has over 10 years’ experience in leading a variety of digital transformation initiatives across several industries and organisations including the likes of Time Out and Auto Trader. Dave has an MBA and a first-class degree in Astrophysics from the University of Leicester.

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TECHNOLOGY

Despite this success, the drive to take full advantage of Sitecore’s benefits to the business is no less potent. “The real opportunity is how you take it to the next level. We are still working with Sitecore on the next phase of leveraging their experience platform,” he says.

Croda’s interest in this area is particularly focused on the burgeoning concept of B2B personalisation. The concept, which has long been a core aspect of the B2C space, is now beginning to drive B2B actions to improve customer experience through tailored relationships.

While Sitecore has reimagined Croda’s online identity, Croda’s strategic part-

“ Having the buy-in of the employees comes from that commitment to improving their experience alongside the customer experience” — Dave Cook, Chief Digital Officer, Croda International

nership with Hootsuite facilitates its advanced social media presence in a landscape where this is increasingly necessary. “Customers are starting to move away from traditional marketing routes. The live event space, with traditional stands, still happens, but customers are increasingly either visiting the website or interacting with our content on social media. With social media we wanted to work with a company like Hootsuite who could bring that strategic partnership element to the table,” Cook explains. e uro pe .busi ne ssc hief. com

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CRODA

C O M PA N Y FACT S

• Croda has a network of over 4,500 passionate and committed employees in 38 countries • A FTSE100 company, Croda is named among Management Today’s top three most admired companies in the UK

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• Placing considerable importance on the employee experience, Croda’s positive culture exemplifies this • Croda is focused on the concept of B2B personalisation, which will improve the customer experience through tailored relationships

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“We were keen to think not only in

felt that Hootsuite were the best

terms of their product range but also

partner for that.”

the services they offer that could help

SAP’s C4C CRM platform is also

to define the strategy we’re going to

part of the mix. “We were looking for

employ, to more effectively measure

a solution that would easily integrate

the impact of our social media pre-

with the rest of the estate and C4C

sence, and to enable employee

was an obvious choice. The links

advocacy. There were a series of

between Sitecore, SAP C4C and SAP

components that we wanted to

ERP are fundamental to a broader

integrate into our approach, and we

agenda,” he adds.

MARCH 2019

TECHNOLOGY

£1.4bn Approximate revenue (2017)

1925

Year founded

4,500

Approximate number of employees

Cook is also mindful of the compa-

consider the people in the business,

ny’s supporting functions and Croda’s

particularly in terms of learning and

implementation of the Cornerstone

development. We asked ‘how do we

talent management platform is indicative

provide the right environment to help

of an attention to detail that extends

people on this digital journey and help

behind the scenes, ensuring that the

them to acquire new digital skills in the

supporting functions of the business

process?’” Cook is quick to reaffirm

benefit from the application of digital

the importance of this approach to the

transformation technologies. “Bringing

firm’s wider success with digital trans-

Cornerstone in is about how we

formation. “It’s one of those examples e uro pe .busi ne ssc hief. com

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where it’s not necessarily front of mind but, without that enabler, it’s very hard to achieve your bigger objectives. You need to have the skilled people in place to make the journey successful.”

GROWTH THROUGH ACQUISITION Cook is confident in Croda’s ability to source the best partners to help solve business challenges and drive innovative processes, adding: “Where we MARCH 2019

TECHNOLOGY

don’t have a skill set, we’re very confident that we can find the right partners and bring those skills into the organisation.” This ethos extends to Croda’s acquisition strategy, with an example being the addition of an inhouse team of machine learning specialists through the company’s 2015 purchase of Incotec. At Incotec, the team developed a machine learning solution that can autonomously assess the quality of seeds and their likelihood of germination, boosting yield through this intelligent seed selection. This expertise in development of sophisticated technologies is now being applied to Croda’s other manufacturing processes with a view to drive efficiency and boost production rates.

It is clear Croda’s digital strategy is positively influenced by the company’s open-mindedness to the digital operations of the firms it acquires. The companies that Croda acquires are frequently leaders in their own fields, which offers an intriguing prospect for locating complementary technologies for its digitisation strategy. “Because they tend to be forward thinking, they may have some interesting examples of where they’ve used technology that e uro pe .busi ne ssc hief. com

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CRODA

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“ Where we don’t have a skillset, we’re confident that we can find the right partners and bring those skills into the organisation” — Dave Cook, Chief Digital Officer, Croda International

MARCH 2019

TECHNOLOGY

maybe Croda hasn’t adopted yet,” Cook says.

Croda is certainly in an extremely strong position as it continues its digital transformation journey, with a culture of excitement coupled with positive change management and measured flexibility that ensures the selected digital solutions are the right ones to drive the company forward.

All of this is compounded by an unerring commitment to customers and ensuring that the firm’s focus is on being the best in the industry. “I think we are incredibly positive about how we can use digital to improve our organisation in order to deliver a better service to our customers,” Cook adds. “We’re very pleased with how far we’ve come, but there’s still a lot to do, and we’re very focused on achieving the outcomes that we’re after.”

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How IBS Software is helping airlines with their digital transformation WRIT TEN BY

SOPHIE CHAPM AN PRODUCED BY

M ANUEL NAVARRO

MARCH 2019

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I B S S O F T WA R E

Leading airlines and travel providers are partnering with IBS Software for transforming their business operations and Daniel Stecher,IBS’ Vice President of Airline Operations, tells us why...

I

BS Software is a leading provider of software products and services for mission critical and key business operations for the global travel,

transportation and logistics industry. The firm powers some of the world’s best airlines, busiest airports, leading cruise lines, major hotels, travel distributors, and top oil 186

and gas companies. Established in 1997 in India, the company has since established a global presence with 10 offices across the Asia-Pacific (including Japan), the Middle East, Europe, and North America, with its global headquarters in Singapore. “As our chairman, V K Mathews puts it, the key word that is core to our story is ‘focus’. Domain focus has been key to our success within travel, transportation and logistics. We are also technology-focused – as we choose only to work with modern technology and are determined to take the industry out of the clutches of legacy systems,” reveals Daniel Stecher, Vice President, Airline Operations at IBS. The company’s products and services are designed to leverage modern technologies to enable its customers to benefit from evolving technology trends such as mobility, big data, blockchain, analytics and cloud computing. “Our vision is centered around building next generation MARCH 2019

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I B S S O F T WA R E

“ Our vision is centered around building next generation platforms and products to help our customers on their business transformation journeys”

188

— Daniel Stecher Vice President of Airline Operation, IBS Software

platforms and products to help our customers on their business transformation journeys. Our core values help us translate that vision into reality,” says Stecher. The core values of precision, passion, commitment, integrity and respect for the individual are guiding principles for the organisation.

For an industry that has been resistant to incorporating evolving technology, travel and tourism is ripe for disruption that will touch on every phase of the customer experience.

With significant digital disruptions in the market place, consumer behaviour is changing and new business models are evolving. Digital trends that simplify decision making in travel like big data, artificial intelligence and machine learning can help personalise travel services. IBS claims the desire for unique experiences has been the most crucial customer demand this year.

“To address the shifting industry landscape, digital business strategies are what travel service providers are looking at. Over time, the value of their enterprise is going to shift more towards digital assets than physical. Travel companies are becoming increasingly

MARCH 2019

TECHNOLOGY

CLICK TO WATCH : ‘IBS SOFTWARE - SHOWCASE’ 189 aware of the need to build their digital

do we facilitate ‘Collaborative Disrup-

capabilities and to fulfil these require-

tion Management’ and help airlines

ments, they will want digital ready

avoid burning money? The key to

infrastructure. IBS is well positioned to

digital transformation lies in answering

help our customers on this journey and

such questions”.

serve them as digital enterprises,”

IBS’ core technology strategies are

Stecher reveals. “In operations control,

based on robust technology selection,

for example, when it comes to digital

scalable and flexible product architec-

Operation Control Centres we like to

ture, and reusable components, with

ask our customers how concepts like

solutions for the travel marketplace, air

big data, IoT, predictive analytics, and

cargo operations, upstream oil and gas

the cloud translate to real value in

logistics, airline passenger services,

airline operations? How do we effec-

loyalty management, and flight and

tively conduct the evolution of the

airport operations. The firm also offers

digital OCC from legacy systems? How

services featuring industry-specific, e uro pe .busi ne ssc hief. com

I B S S O F T WA R E

“With iFlight NEO, we enable carriers to better work on disruptions, as the system makes use of real time data for proactive disruption management” — Daniel Stecher Vice President of Airline Operation, IBS Software 190

specialized information technology.

to extract the multidimensional value of

“We have adopted a unique collabora-

cloud services: “The benefit is that you

tive approach to developing a product

can really harmonise data much easier

roadmap wherein we gather insights

if you have everything in the cloud. Of

into the future direction and next

course, security plays an important

generation technology needs of the

role, especially considering GDPR and

sectors. Our differentiated approach to

as a digital company we consider data

product development allows us to

protection and personal privacy,” adds

deepen our industry knowledge, align

Stecher. The company’s products are

our software products to our custom-

delivered as Software as a Service

er’s evolving business needs and

(SaaS) which is made possible through

identify early adopters for our new

global custom data centres being

software products,” Stecher notes.

equipped with the necessary informa-

IBS has been pursuing strategies MARCH 2019

tion technology infrastructure to

TECHNOLOGY

ensure high levels of security, redun-

through these high maintenance

dancy and uptime. With minimal

legacy mainframe systems not only

investment in technology infrastruc-

becomes difficult for airlines, but also

ture, airline companies and travel

poses an intolerably high level of risk

service providers are able to make use

for the business. In effect, we are not

of volume-based expenditure control.

only replacing this one system; we are

The company is currently working

replacing four others,” Stecher notes.

with a number of the leading airlines in

Overcoming the heavy cost implica-

Europe. According to Stecher, some of

tions of migrating away from legacy

these airlines use decades old legacy

systems begins with looking at a cloud-

systems. “IBS is currently working with

based approach. The company’s new

these airlines on huge digitalisation

digital platforms are not only cloud

projects, because they have been

native, but are also cloud agnostic. The

using the same systems for 3 or 4

recently launched iFlight NEO system

decades. Sustaining operations

is an integrated digital platform, which

E XE CU T I VE PRO FI LE

Daniel Stecher As Vice President and Head of Global Sales for Airline Operations Daniel is responsible for global sales and business development of the brand new airline operations digital platform “iFlight NEO”. He created the OPS 2020 industry event which brings together global airlines and is dedicated to the global Airline Operations and Crew Management Community. He has more than 20 years of experience spanning over the logistics industry and has been traveling more than one and a half million miles, in order to meet with industry experts and customers from the air cargo industry and airline business IT solutions industry.

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TECHNOLOGY

“ We look at DELL as a strategic supplier, because for us, the first priority for our enterprise requirements is the quality of aftersales support we receive” — Daniel Stecher Vice President of Airline Operation, IBS Software

being an important factor of airlines giving us data to store in the cloud, we rely on Dell to supply us with hardware that will perform well. There is a train of trust – as we trust Dell, this trust is pushed further into the market as we offer our solutions to customers,” says Stecher. More importantly, the firm also provides Chassis and Blade servers and virtualisation technology for IBS’ private cloud. Its EMC VNX, Unity, and SC series meet IBS’ storage requirement for their SaaS DCs and internal private cloud. “We look at DELL as a strategic supplier, because for us,

enable carriers to manage their

the first priority for our enterprise

operations, including fleet, hub and

requirements is the quality of after-

crew. The operations control and core

sales support we receive. Their techni-

management system aims to utilise the

cal know-how and customer service of

firms’ resources and incorporate the

DELL support engineers are best in

latest technologies. “With iFlight NEO,

class and makes all the difference. The

we enable carriers to better work on

DELL-EMC-VMW Technology alliance

disruptions, as the system makes use

also comes to our advantage since DELL

of real time data for proactive disrup-

is able to act as a single point of contact

tion management,” says Stecher.

during any technical issues or failures.”

As the company progresses, IBS

As IBS continues to expand its

turns to DELL as a strategic partner for

services and partners, Stecher reveals

its hardware needs. DELL supplies IBS’

the biggest obstacles the company will

employees’ Enterprise class desktops,

have going forward. He cites the

such as the DELL OptiPlex series, and

largest challenge as the objection to

DELL Latitude laptops. “With liability

change within the airline industry, e uro pe .busi ne ssc hief. com

193

I B S S O F T WA R E

“Very often we have to offer explanations to initiate change.

That’s the biggest obstacle to building trust with people when they begin to think about necessity of change.”

194

— Daniel Stecher Vice President of Airline Operation, IBS Software

MARCH 2019

TECHNOLOGY

which he says is “very risk averse”. “It’s a very safety and regulation-oriented industry and will never compromise on safety. Technology has not always provided absolute safety, so very often we have to offer explanations to initiate change. That’s the biggest obstacle with building trust with people when they begin to think about necessity of change.” Despite these obstacles, Stecher and the IBS team will move forward introducing new technologies to aging systems in order to make a real difference to the airline industry and beyond.

195

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196

Customercentric digital transformation at Hapimag WRIT TEN BY

DA LE BENTON PRODUCED BY

M ANUEL NAVARRO

MARCH 2019

TECHNOLOGY

197

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HAPIMAG

Hassan Kadbi, CEO of Hapimag, explores how the company is embracing the digital world to attract a new generation of customer

I

n today’s hospitality, travel and tourism industry, the destination is no longer the key differentiator between companies.

The modern-day guest has more diverse expectations and demands than ever before and industry 198

players have had to wake up to this shifting customer base, recognising that delivering the best possible guest experience, both in and out of the holiday facility, is proving to be the ultimate competitive advantage in a multi-billion-dollar market. For Hassan Kadbi, CEO at hospitality business Hapimag, the last 20 years have seen most businesses across the industry diversify “dramatically” in order to navigate this shifting customer base. At Hapimag, the key to succeeding across this changing landscape is continuous learning and improvement.

“Historically, hospitality, accommodation and tourism were all about good service at a good price,” he says. “But over the years, so many elements have changed the game, and the speed at which this is happening is overwhelming for companies. The challenge then becomes ‘how can you MARCH 2019

TECHNOLOGY

199

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TECHNOLOGY

CLICK TO WATCH : HOLIDAY BUT DIFFERENT 201 keep up with this, deliver what your

to simplify the Hapimag product and

customer expects and not lose that

make it more attractive to a younger

customer in the end?’”

generation of guests through the

Kadbi joined Hapimag back in 2005,

digitalisation of its business model.

having previously worked in senior

His biggest challenge was evolving

management positions for Hilton World-

the company as the industry around

wide across the United Kingdom and

it changed, and understanding and

Greece. Over the following years, he

responding to those various elements.

rose through the ranks of Hapimag,

Kadbi breaks this strategy down into

taking responsibility of various resorts

three key areas: destination; the mindset

across Greece, Turkey and North Africa,

of the modern travelling guest; and, of

finally being in charge of all Hapimag

course, the complexity of digitalisation.

facilities, before taking over the role of

“Competition started with the destina-

CEO in 2016. When appointed as CEO,

tion. It was the key selling point. However,

Kadbi was tasked with one clear vision:

looking at the industry today, there are e uro pe .busi ne ssc hief. com

HAPIMAG

“ We want employees to make decisions, make mistakes, learn from them and do the best for the customer” — Hassan Kadbi, CEO, Hapimag

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MARCH 2019

TECHNOLOGY

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TECHNOLOGY

so many players that offer resorts and

supported by technology that enables

hotels in the same destination. So the

an entirely seamless experience, so

pressure began to pile onto the business

they can have that unique experience

itself,” he says. “As for the guest, trav-

at the destination.”

elling used to be for business or for

Hapimag was founded in 1963 with

a holiday. Today, one of the biggest

the idea of providing people who could

reasons for travel is the experience

not afford their own holiday home with

surrounding the destination. The youn-

the opportunity to spend their holidays

ger generation looks for experience

in a “place of their own” in various

before they even consider accommo-

locations around Europe. Fast forward

dation. We then have to look at our

to today and the firm has around 125,000

product offering, factor in this chang-

shareholders and members who can

ing landscape and ensure that it scra-

take advantage of stunning holiday exper-

tches that itch. It should also be

iences across 16 countries. While

E XE CU T I VE PRO FI LE

Hassan Kadbi Hassan Kadbi has worked at Hapimag since 2005. He started as a Resort Manager in Bodrum, then as an Area Manager for Greece, Morocco and Turkey, before assuming responsibility as Chief Resorts Officer for the operational management of the resorts. He has served as CEO of Hapimag since November 2016. Before joining Hapimag, he worked for Hilton in various positions globally. He has a Bachelor of Arts in International Hospitality and Tourism Management from the University of Bournemouth (GB) and a Higher Diploma in Hotel Management from the IHTTI School of Hotel Management in Neuchâtel (CH).

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205

HAPIMAG

“The days where the challenge was simply ‘does the place have a Wi-Fi connection and is it free of charge?’ are gone” — Hassan Kadbi, CEO, Hapimag

206

Hapimag has enjoyed decades of un-

to attract and retain a younger gener-

deniable success, operating for more

ation of guests.”

than half a century has created what

For most companies, digitalisation

Kadbi describes as “something of

is the key to attracting the younger

a closed community” for the company.

customer or guest, but Kadbi is keen

“By closed community I mean regular

to stress that while digitalisation is im-

customers. All of our customers

portant, Hapimag doesn’t fall into the

across our 60 properties are regular

trap of overwhelming the customer

customers,” he says. “But our next

with digital services. Booking platforms,

generation of customers will be

customer service and online portals

younger and have different expecta-

are all instrumental in delivering the

tions and demands. We’re now chang-

best customer experience but Kadbi

ing what we’ve historically done and

believes that the area of focus should

transforming as a business in order

be a little more behind the scenes.

MARCH 2019

TECHNOLOGY

“The secret to our success in everything we do is data and what we do with it – everything we know about our customers and their behaviours and engagement with Hapimag,” he says.

“The days where the challenge was simply ‘does the place have a Wi-Fi connection and is it free of charge?’ are gone. Now we have to ensure we have the right bandwidth to support the customer’s interests. They want to stream a movie, listen to music or browse on their personal devices. It’s about what we can do to make the

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207

HAPIMAG

customer’s life easier as they use our product unconsciously.”

Hapimag’s shareholder base extends well beyond its 125,000 registered members. As Kadbi notes, their families and friends are also interacting with Hapimag, so the challenge of optimising and simplifying that interaction process is significant as the company looks to deliver the best possible customer experience. He points to Hapimag’s rewards system and how, across the industry, many hotels require 208

guests to use rewards gifted to them by a certain time or they expire. “The bottom line was that 50-60% of those rewards were lost because even though we remind members and shareholders, it’s not the first thing on their mind and they often forget they have them,” he says. “So, we automated our rewards

ensuring that the customer is driving

system. Customers spend their money,

the demand, not the technology.

they earn their rewards and those rew-

Hapimag looks to invest in technology

ards are automatically placed in their

where there is clear and tangible value

accounts. Just like that. I have always

to the customer. Wireless technology

believed that a company should offer

and connectivity, for example, are

a digital rewards system where the cust-

crucial to a seamless customer exper-

omer doesn’t have to do a thing.”

ience and across all of its locations. But

This represents the company’s smart

what of the biggest technology trends

approach to the digital conversation,

that are defining the global conversa-

MARCH 2019

TECHNOLOGY

209

tion? Where do artificial intelligence

that steers the conversation. “At this

(AI) or blockchain fit into Hapimag’s

point for me, it’s a case of spending

transformation? “Right now, they are

€1mn on technology or spending €1mn

irrelevant for us as a direct investment,”

on putting better mattresses in all of

says Kadbi. “We are waiting to see

my resorts. I’ve got a view that the better

what is out there in the market and then

mattresses will make my customers far

we will decide if something like AI or

happier at this point.”

chatbots could bring added value to

The key to understanding just how

Hapimag and its customers.” Once

happy the customer is lies with effective

again, it’s the customer experience

communication, and Hapimag goes to e uro pe .busi ne ssc hief. com

HAPIMAG

210

great lengths to ensure that its decision

programmes with its customers in

making is in line with the customer and

order to grow with its community

not the other way around. It does this

interests in mind and therefore better

through regular questionnaires and

serve them. A key example of this is the

surveys that allow Kadbi to ask the

honesty bar concept whereby Hapimag

questions: “Do our customers like our

allows guests to enjoy food and bever-

product? Are they happy? Where

ages within their room at their own

could we improve?�

leisure. Rather than a member of staff

As well as feedback surveys, Hapimag also runs a number of pilot MARCH 2019

checking and adding an additional cost onto the experience, the guest pays on

TECHNOLOGY

211

departure. “They simply enjoy the

To deliver an unrivalled customer

experience knowing that they don’t have

experience, Hapimag requires the right

to worry about paying then and there,

people and employees. After all, running

or waiting for us to place additional costs

a resort or a hotel is a complex process

onto them,” says Kadbi. Within just over

and a key part of what makes Hapimag

two years of starting the initiative,

successful is its company culture.

Hapimag now has honesty bars at more

Kadbi notes that it has to start from the

than 30% of its locations and has since

top. “We lead by example and this passes

been expanding this further and creating

down through the company and to the

honesty shops.

customer,” he says. “We believe that e uro pe .busi ne ssc hief. com

HAPIMAG

“ One thing we really do not mess around with is the experience, the authenticity, and being a true community” — Hassan Kadbi, CEO, Hapimag 212

you need to be inclusive of your employees and inclusive of your customers when moving forward.” Kadbi himself writes an internal blog that explores how the company is evolving, as well as an internal note that champions the success of his employees. “Our communication channels now represent empowerment projects for employees,” he says. “It’s part of a cultural change. We want employees to make their own decisions, achieve success and make mistakes. They will learn from this and better understand how they can do more for the customer.”

MARCH 2019

TECHNOLOGY

This culture of communication and empowerment forms a central part of what makes Hapimag truly unique: authenticity in delivering on its promise to provide individual holiday homes and experiences all over the world. Its customer base is changing dramatically, with its future target group being made up of the millennial generation and Kadbi believes that as the customer becomes more digitally enabled and more informed than ever before, the authenticity of Hapimag will stand the test of time.

“Millennials are incredibly smart shoppers.

They follow a cause more than the older generation, and at the same time they demand authenticity,” he says. “At Hapimag, we are learning, we are improving and we will continue to do that. There’s one thing we really do not mess around with and that’s the experience, the authenticity, being a true community.”

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213

214

MARCH 2019

S U P P LY C H A I N

KTM GROUP

ACCELERATING TOWARDS THE ASIAN MARKET WITH SUPPLY CHAIN EXCELLENCE WRITTEN BY

LAURA MULLAN PRODUCED BY

CHARLOTTE CLARKE

a si a .busi ne ssc h ief. com

215

KTM

LUCA MARTIN, MANAGING DIRECTOR AT KTM ASIA MOTORCYCLE MANUFACTURING INC., REVEALS HOW THE FIRM IS READYING ITS SUPPLY CHAIN FOR THE BUSINESS’ NEXT FRONTIER: ASIA

I

f you’re a motorcycle enthusiast, KTM Group will be a company firmly on your radar.

Offering everything from trailblazing street

bikes to dirt-shredding motorcycles, KTM has earned its reputation as Europe’s largest motorbike manufacturer and now, on the road ahead, it has 216

its eyes firmly set on a new horizon: Asia.

One integral player at the heart of this expansion is Luca Martin, Managing Director at KTM Asia Motorcycle Manufacturing Inc. Martin is a seasoned professional when it comes to two-wheeled vehicles: he started his career as a mechanical engineer, specifically working on vehicle engine development where he used artificial intelligence (AI) to optimise mechanical components. His next career move saw him at Ducati. “I helped to create the complete supply chain of Ducati in Asia from scratch,” Martin recalls. “We had to find new suppliers, develop new components locally to optimise the factories out there.” This was no mean feat, but Martin helped to establish Ducati’s Asia presence and therefore when KTM Group readied itself to enter the Asian market, Martin was an ideal candidate for the job.

MARCH 2019

S U P P LY C H A I N

217

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KTM

“ WE STARTED PRODUCTION FOR BOTH LOCAL AND EXPORT MARKETS JUST OVER A YEAR AGO AND WE ARE ALREADY PRODUCING MORE THAN 7,000 UNITS A YEAR”

218

— Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc MARCH 2019

As part of this ambitious strategy, the company forged a US$2mn joint venture with Ayala Group’s offshoot Adventure Cycle Philippines Inc and a new subsidiary, KTM Asia Motorcycle Manufacturing Inc. (KAMMI), was born.

Today, the company produces bikes such as the KTM 200 Duke and RC 390 at its state-of-the-art manufacturing facility in Laguna, right in the heart of the Philippines, offering the perfect springboard for KTM Group to enter Asia. “We started production for both local and export markets just over a year ago and we are already producing more than 7,000 units a year,” enthuses Martin. “We have big hopes for the Southeast Asian market.”

Tackling a new location is a challenge for any firm, but with its strong local partnerships, KTM Group has been able to hit the ground running. “Thanks to Ayala’s support, we’ve been able to start production in a very short time: we’ve been able to move from a startup to a scaleup company,” Martin observes. “They really helped us establish strong relationships with local suppliers and this is one of the key advantages of setting up this joint

S U P P LY C H A I N

CLICK TO WATCH : ‘KTM FACTORY RACING 2019 DAKAR RALLY REVIEW | KTM’ 219 venture.” As one of the largest and

suppliers are used to working in the

most diversified business groups in the

automotive segment and they’re used

Philippines, Ayala Corporation is

to helping manufacture millions of cars

present in markets including real

every year. Our challenge is to help the

estate, banking, telecommunications,

supplier understand that by working

water, power, industrial technologies

with a well-known brand, there’s more

and more. This has allowed KTM

opportunity to grow. In the long term,

Group to gain a deep understanding of

we hope to increase our more and

the Philippine market.

more bikes.” In doing so, KTM Group is

Entering this new market was a

not only helping to meet the burgeon-

challenge from a supply chain per-

ing demand for its motorbikes, it’s also

spective as it meant developing a new

helping to boost the local economy

network from scratch. However, this is

and generate employment for more

a challenge that KTM Group has taken

Filipinos. “Many of our suppliers are

head on. “Many Asian companies and

small- and medium-sized enterprises a si a .busi ne ssc h ief. com

KTM

220

(SMEs),” explains Martin. “By working

working with some partners in Asia to

with us, they get the chance to grow

develop a supplier rating platform

not only in terms of revenue, but also in

where each and every supplier can log

terms of qualities and process.”

in, create a profile and get feedback

Always keen to race ahead, KTM

about their performances. I think this

Group has also sought to digitalise its

digital approach is important for the

supply chain. “We’re finding new ways

future of procurement.” Data is

to get in contact with suppliers,” Martin

probably one of the most powerful

says. “In the past, we used to get

tools that supply chain professionals

hundreds of emails every day with

have today, however whilst technology

different company profiles and most of

is set to disrupt the sector for good,

the time I simply didn’t really have the

Martin affirms that a human approach

time to physically go through all these

is also vital. “If we want to build a very

potential prospects. Now we are

strong relationship with suppliers, I

MARCH 2019

S U P P LY C H A I N

221

E XE CU T I VE PRO FI LE

Luca Martin Turnaround CEO with 10+ years of experience in the automotive business. Developing high quality business strategies and plans ensuring their alignment with short-term and long-term objectives. Leading and motivating directors to advance employee engagement, developing a high performing managerial team. Setup of operational and financial goals, informing and advising Board members, managing the organization’s resources, promoting the enterprise to its stakeholders, recommending a proper budget, with an emphasis on cost savings. Start-up approach on new operations.

Business angel and startup mentor/investor.

a si a .busi ne ssc h ief. com

KTM

1953

Year founded

€1.14bn Approximate revenue 2016

HQ

222

Mattighofen Austria

MARCH 2019

S U P P LY C H A I N

223

a si a .busi ne ssc h ief. com

KTM

Twice the power, Twice the possibilities

LEARN MORE

www.vpic-group.com | pndat@vpic-group.com

S U P P LY C H A I N

CLICK TO WATCH : ‘THE JOURNEY OF A LEGENDARY BRAND HUSQVARNA MOTORCYCLES’ 225 think it’s important that we visit them.

We need to create a face-to-face relationship,” he asserts, “but at the same time, I think that digital platforms can help buyers be more productive because they can count on reliable data to select suppliers.”

As well as developing a new supply chain, KTM Group also had to contend with the challenge of getting the right talent and expertise on board, however when your brand is one associated

“ THANKS TO AYALA GROUP’S SUPPORT, WE’VE BEEN ABLE TO START PRODUCTION IN A VERY SHORT TIME: WE’VE BEEN ABLE TO MOVE FROM A STARTUP TO A SCALEUP COMPANY” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

with adrenaline and speed it seems that finding employees who are passionate about the product isn’t too a si a .busi ne ssc h ief. com

Proud to be part of.

Creating value for all.

Creating value by combining the power of innovation and product quality and passionately creating world class solutions catering to two wheeler, passenger cars, commercial vehicles, construction and agricultural machines and rolling stocks.

Visit us at: motherson.com

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wiring harness rearview mirrors moulded plastic parts and assemblies injection moulding tools moulded and extruded rubber components modules and systems machined metal products cutting tools aluminium die casted products sheet metal parts thin film coating metals IT services wireless power hot stamped parts

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KTM Engine Factory in Mattighofen

MARCH 2019

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S U P P LY C H A I N

difficult. “We’re lucky that we produce a product which you could call an entertainment product so you can tell talent, ‘Look, if you are passionate for the motorcycles, we are producing one of the best that you can find in the market’,” says Martin. “This is a very valuable retention tool. A lot of KTM employees are passionate about motorcycles or are even professional riders. On the other hand, we do believe that this isn’t the only thing we offer. We also try and onboard local

“ KTM GROUP HAS RECORDED RECORD VOLUME PRODUCTION EIGHT YEARS IN A ROW” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

227

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KTM

“ IF WE WANT TO BE SUCCESSFUL ABROAD, WE NEED LOCAL TALENT”

228

tion, the Asian market will play a key role in its future growth strategy. “KTM Group has recorded record volume production eight years in a row. Every year we’re producing more and more bikes and in 2018, we saw a total sales increase of about 10% to 261,000

— Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

well-known brands for off-road in

people who believe in our values. If we

equipment manufacturers) but the

want to be successful abroad, we need

future growth of KTM Group cannot

local talent because only they can help

be as strong without Asia.”

KTM better understand the local culture.”

The Philippine plant is KTM Group’s

motorcycles. KTM is one of the most North America and in Europe we are now one of the biggest OEMs (original

KTM Group’s reputation precedes it.

To disrupt the Asian market KTM Group

third manufacturing facility, with its first

will undoubtedly rely in on its race-

located in its home country of Austria

proven success. Its distinctive orange

and the second in India. In selecting

motorcycles have crossed the winning

Asia as a key market, Martin contends

line at 18 Dakar Rallies in a row and

that as the group ramps up its produc-

KTM racers have gained 281 world

KTM Board of Directors

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S U P P LY C H A I N

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KTM

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MARCH 2019

S U P P LY C H A I N

CO MPAN Y FACT S

• 281 world championship titles up until now • 18 wins at the Dakar Rally in a row • Europe’s biggest motorcycle manufacturer • Total sales 2018 increase of about 10% to 261,500 motorcycles

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KTM

“ WE TRY TO TRANSFER WHAT WE’VE LEARNT FROM OFFROAD IN TERMS OF PRODUCT QUALITY AND EASE OF MAINTENANCE AND BRING THAT TO OUR STREET BIKES. WE ALWAYS WANT TO BE ON TOP OF TECHNOLOGY” — Luca Martin, Managing Director at KTM ASIA Motorcycle Manufacturing Inc

232

championship titles up into now. Martin wants to bring this same world class quality to Asia. “We want to show the Asian market that KTM represents

We always want to be always on top of

quality and more importantly, we’re

technology.” KTM Group has also

ready to race. We want to bring this

shrewdly kept track of emerging trends

racing spirit to Asia and we truly believe

in the motorcycle space. For instance,

there will be a bright future for big bikes

whilst the firm noticed a dip in demand

in this market.” The firm won’t just rely

for superbikes they tapped into the

on its legacy though: it’s keen to invest

growing uptick for smaller bikes.

in new innovation so that it can create

“This was a strong move by KTM,”

the best race machines in the market.

notes Martin. “We focused on smaller

“One of our biggest competitive

displacement bikes but our competi-

advantages is that we try to transfer

tors didn’t.”

what we’ve learnt from offroad in terms

Just as consumer demands are

of product quality and ease of mainte-

shaking up the market, the rise of

nance and bring that to our street bikes.

electrification could always change the

MARCH 2019

S U P P LY C H A I N

233

motorcycle market for good. “We are

a challenge but with the right partner

now in an era of new mobility,” Martin

we will be able to prepare for this shift.”

asserts. “We truly believe that sooner

Looking ahead, the future is bright

or later they will be a move to electric

for KTM Group. The firm has cemented

motorcycles. We have been developing

its position as Europe’s largest

off-road electric bikes for many years

motorbike manufacturer, and now

already. We’re seeing a shift in that

Asia’s motorheads need to look no

direction and we want to be part of this

further if they want to get their hands

movement.” This market swing won’t

on a high-quality race machine.

come without its challenges though.

Whilst the weight of a battery may only slightly alter the performance of a car, it can “completely change the handling of a bike”, according to Martin. “This is a si a .busi ne ssc h ief. com

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MARCH 2019

MINING

EMMERSON: DISRUPTING THE GLOBAL POTASH MARKET WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

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EMMERSON PLC

Hayden Locke, Executive Director of Emmerson, explores how the company looks to disrupt the booming potash market with the Khemisset project

I

n the mining industry, location is not only a competitive advantage – it can also be the difference between

success and failure. This is particularly the case in the global potash market, one that 236

has a number of barriers to entry meaning only a handful of operations have been built over the last 50 years. “There’s a reason why there’s been only one new potash mine built in the last 50 years outside of Russia and China and that is primarily the astronomically high capital cost to production for most potash mines,” says Hayden Locke, Executive Director of Emmerson. “That mine was built in Canada, cost over US$4bn, and was built at a time where potash prices were more than double what they are today. In today’s market, that mine would never have been built.”

Emmerson is a potash company focused on the development of its flagship Khemisset Potash Project, located in Northern Morocco.

MARCH 2019

MINING

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EMMERSON PLC

238 The project has significant exploration potential with an accelerated development plan that is targeting a low capital expenditure (capex), high margin potash operation which will produce around 800,000 tonnes per annum. One of the key highlights of the project is its very low capital cost to production by potash industry standards. In the opinion of Locke, this is the first hurdle to be cleared in order to have any chance of entering this extremely protected market. Its location in Morocco, with a number of export ports accessible from the project site and close MARCH 2019

“ IF YOU’RE CLOSE TO YOUR END MARKET, YOU WILL LIKELY ALWAYS BE COMPETITIVE, JUST THROUGH THE COST SAVINGS IN THIS KEY AREA” — Hayden Locke, Executive Director, Emmerson

MINING

CLICK TO WATCH : ‘EMMERSON PLC ON TARGET WITH LOW CAPEX POTASH PROJECT’ 239 proximity to the deep European,

Morocco it has a huge advantage over

Brazilian and US markets provides

competitors.”

the second competitive advantage –

Morocco is fast becoming a signifi-

one which is unerodable. “The majority

cant player in the global potash market

of existing potash production is located

and has been identified as one of the

in Canada and the Former Soviet

top five fastest growing import markets

Union, and by far the biggest costs for

for potash in the world. This has seen

these producers are incurred through

potash demand grow at over 140% per

royalties, transport and logistics,”

year over the last five years. “That’s

Locke explains. “If you’re close to your

basically 70 times faster than the global

end market, you will likely always be

market,” says Locke. “That’s a real

competitive, just through the cost

strategic advantage to this project and

savings in this key area. Khemisset’s

something that gets me excited about

location is second to none, and with

what we can achieve.” Over the course

the negligible royalties payable in

of his career, Locke has worked in e uro pe .busi ne ssc hief. com

EMMERSON PLC

240

MARCH 2019

MINING

senior executive roles for a West African

hear of people getting lucky and timing

gold developer and a potash dev-

their investment in the cycle perfectly,”

elopment company based in both

says Locke. “But that is not easy to

London and Spain. This experience

do, so you need to bulletproof yourself

has provided him with a unique view

against the cycle by being among the

of the potash market, as well as the

lowest delivered costs to your custom-

challenges of working in the African

er and in potash: that’s largely driven

market and attracting investment.

by location.”

Khemisset benefits from an incredibly

The Khemisset project is less than

attractive location, but Emmerson also

150km from an operating port that is

looks to create an operation with very

already accessible from existing

low capex by industry standards, which

logistics infrastructure, and is 90km

will prove key in attracting investment

and 130km respectively from two

as it looks to advance development.

additional ports, which are also easily

“Having worked for the best part of

accessible. Having this infrastructure

a decade in the commodity space and

already in place, with limited invest-

dealing with commodity cycles, you

ment required by the company, means

E XE CU T I VE PRO FI LE

Hayden Locke An experienced mining executive with 15 years’ experience in mining, private equity and investment banking. Most recently, Locke was Head of Corporate and Technical Services (Geology, Mining and Processing) at ASX listed potash developer Highfield Resources. Prior to this, Hayden was Head of Corporate for ASX listed Papillon Resources which was sold to B2Gold in 2014 for $650mn. Throughout his education, Locke studied engineering, commerce and geology.

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DRILLING

CONSULTANCY

EQUIPMENT SUPPLY VISIT OUR SITE CONTACT US

MINING

243

a significant reduction in overall capital

Around 95% of potash produced

costs. It does not need to invest in

around the world is used in fertiliser for

upgrading or building the infrastruc-

agriculture. It has a direct impact on

ture. “The transport and logistics

the global food supply, and with the UN

infrastructure to get to the export stage

expecting the world population to

is first class,” says Locke. “Morocco is

reach 9.8bn by 2050 the demand for

a trading nation with incredible infra-

potash will only continue to increase.

structure. It’s certainly a leader in

Locke feels that as the global agricul-

Africa from an infrastructure stand-

ture space looks to increase its yield

point, even when compared to South

and production by around 70%, it will

Africa, and we benefit from that mass-

both control and protect the potash

ively with amazing roads to and from

market. “For the last hundred years

our location and general infrastructure

this market has been dominated by

at the mine site.”

a handful of suppliers who have shown e uro pe .busi ne ssc hief. com

EMMERSON PLC

themselves to be very disciplined when the price fluctuates. When prices rise, they increase production to bring the price back down,” he says. “When you combine this price discipline with the traditionally high barriers to entry – in the form of capex – you can understand why there have been virtually no new entrants to the market in the last five decades. The only way to guarantee entry to this market is through lower capital cost production, which is what Khemisset will bring.”

The traditionally controlled potash market has allowed companies like Emmerson to look at existing and successful potash operations in great detail. In particular, Locke has been able to better understand the structure of the market in order to see whether Emmerson could compete – and

a lot of time looking at our competitors

indeed whether it should compete with

and those existing operations to

incumbents in the first place. He points

analyse the cost structures and what

to BHP as an example: the company

does and doesn’t work before embark-

has tried on three separate occasions

ing on this journey.”

to enter the potash market, all of which

This approach allowed Locke and

have proven unsuccessful. “This is the

Emmerson to identify two clear prereq-

world’s largest mining company and

uisites to success: capital cost to

they could not get past those barriers

production, and location relative to

to entry, so you really need to take a

customer and end prices. With

different viewpoint,” he says. “We spent

Khemisset he believes that the

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MINING

“IT’S A FAIR AMOUNT OF WORK TO GET THROUGH BUT WE’VE GOT LOFTY AMBITIONS” — Hayden Locke, Executive Director, Emmerson

245

company has “ticked both boxes” and

our competitive advantage against our

can focus on its key markets of

incumbent peers.”

northwest Europe, South Africa, Brazil

An international mining operation,

and North America accessed through

regardless of the attractiveness of its

New Orleans, Louisiana (NOLA). “I call

cost structure and location, requires

it the Atlantic corridor,” says Locke. “It

local partnerships in order to succeed.

accounts for around 65% of global

Locke believes this is absolutely

potash consumption. This is where we

fundamental as local partners can

will focus our attention because of our

provide crucial input regarding local

strategic conclusion on where we can

market economics. Emmerson is

compete and where we can maintain

currently identifying and streamlining e uro pe .busi ne ssc hief. com

EMMERSON PLC

its supplier network and Locke approaches this with a knowledge sharing mindset. “Having local partners of size and scale to be able to support you and give you the right answer and provide you unfettered service and access to whatever it is you need is fundamental to success,” he says. “It’s very, very difficult to succeed in Africa without strong local partnerships.”

Locke says another area which is fundamental to success is identifying partners with strong technical expertise. “Technical expertise is hard to 246

come by, especially in potash. It is important to identify those groups and work with them as early as possible.

One example is our drill contractor, Drillon, who has proven itself to be an exceptionally professional and technically competent partner for our current drilling campaign”.

The next 12 months will be pivotal for Emmerson and the Khemisset project as the company is currently working to acquire its mining licence, deliver an environmental social impact assessment (ESIA), and conduct and complete a definitive feasibility study (DFS). The company has commenced a drilling programme to upgrade its resource MARCH 2019

MINING

estimates and, according to Locke,

“THE TRANSPORT AND LOGISTICS INFRASTRUCTURE TO GET TO THE EXPORT STAGE IS FIRST CLASS”

“cement the confidence that we have in

— Hayden Locke, Executive Director, Emmerson

a broader African fertiliser story. Locke

the numbers and technical characteristics of the ore”. “Ideally we will have delivered on most of that this year,” he adds. “It’s a fair amount of work to get through but we’ve got lofty ambitions.”

Khemisset looks set for a mid-2022 production phase, when Emmerson will cement itself as a key driver of believes that the company will achieve its targets because of the time it has invested so far in getting it right. “Achieving that will be a testament to the work that we’ve put in,” he says, “and because we’ve been through the process a number of times we know exactly what we need to do.”

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Just in time to say goodbye.

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

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

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