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FOREWORD

elcome to the September issue of our new North America edition of Business Chief.

Our cover feature this month is an interview with Chris Hall, Vice President of Global Information Technology at KEMET Electronics Corporation.

In an extensive discussion, Hall reveals how the company’s aggressive digital transformation has led the business to address ongoing challenges within its digital infrastructure, whilst implementing essential processes in order to remain a market leader.

Increased demands for tools to promote secure networking and collaboration has also filtered into the corporate sphere.

From the development of customer focused apps to promote engagement, to the launch of intricate business applications, we caught up with industry veteran and Chief Executive Officer of Wire Morten Brogger, who details how the company supports the delivery of secure, high quality messaging solutions as it continues to expand across the United States.

Our City Focus this month is San Francisco and we also list the top 10 biggest chain hotels in North America, according to 2017 revenue figures.

Finally, our exclusive digital reports feature interviews with, Epcor Water, Highlands Residential Mortgage and more.

Enjoy the issue!

W

Catherine Sturman Editor catherine.sturman@bizclikmedia.com

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

03

CONTENTS

08 KEMET Electronics

Implementing

digital infrastructure

34

20

WIRE BRINGS SECURE

COLLABORATION TO

NORTH AMERICA

LEWIS DRIVING CHANGE THROUGH TECH SHE CAN

Top 10

Biggest hotel chains

60 46 City Focus

SAN FRANCISCO

CONTENTS

68 Highlands Residential Mortgage Ltd

78 Chayora

106 Dundee Precious Metals

96 KAR Auction Services

120 Epcor Water

Implementing a

digital infrastructure

Through an aggressive digital transformation, KEMET Electronics tackles tomorrow’s challenges today WRIT TEN BY

DA LE BENTON PRODUCED BY

ANDY TURNER

KEMET ELECTRONICS

T

he role of IT in business is changing. No longer simply a support function, over the

last decade IT has taken on a much more integral role in defining the strategic direction of most business all around the world.

“In today’s world, IT is the crux of every business. It is the very foundation that everything is built on,” says Chris Hall, VP Global Information Technology at KEMET Electronics Corporation.

“If you’re not taking it seriously, you’re going to be left behind. Businesses 10

make decisions on the fly and so IT must be able to support these decisions with real-time data. IT has to be agile and be

responsiveness to its customers.

able to meet the needs of the business.”

“It all comes back to IT,” says

The notion of IT being a foundational

Hall. “It’s about making our data

component that the business is built

available. Both from a customer

upon is key in the KEMET Electronics IT

perspective (our distributors and

digital transformation journey. With

our partners), as well as, available

customers ranging from producers of

to our internal business groups.

small wearables, laptops, and mobile

However they want to get the

tablets to solar panels, 5G antennas, and

information, it’s our job to ensure

electric vehicles, KEMET is a leading

its available to them.

global manufacturer and supplier of

“Plus, there’s also a responsibil-

electronic components. This is a

ity to keep the lights on. IT still has

continuously growing market, with

to keep the network running, the

demand increasing faster than ever

PCs patched and generally the

before and KEMET prides itself on its

proper infrastructure and security

SEPTEMBER 2018

TECHNOLOGY

BIO

in place. I’m here to ensure we have a very strong foundation to carry KEMET into the future, with data management and collaboration tools to make us more agile and ultimately more successful.”

Hall tries to sum up the digitization of KEMET in one,

Chris Hall Fhas spent 18 years in the after-market services and electronics manufacturing industries. Rising through the ranks at JABIL, Chris developed a strong understanding of supply chain management, Lean manufacturing, and cross-functional leadership principles. Chris was part of the iQor acquisition of JABIL’s After-Market Services division and was promoted to Vice President of IT Solutions for the newly combined IT department. He spent threeyears developing new technology to support iQor’s joint ventures and general corporate strategy to become a Digital Enterprise. Most recently, Chris joined KEMET Electronics Corporation as VP of Global IT, where he oversees all aspects of IT strategy including infrastructure, systems architecture, and development.

succinct sentence; to create an IT department that enables KEMET’s data to be accessible to any employee at any time, so long as they have security access granting them privileges to that data.

The challenge then becomes

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

11

KEMET ELECTRONICS

one of compiling all data and hosting it in the right place and in a fast and secure way. It’s here that Hall is implementing 5 core pillars to overcome this challenge.

These core pillars define the digitization process, described as KEMET 2025.

“First, we have to organize,” says Hall. “We have to have a good strong change management process; yet maintain agility,meaning that a simple change is a simple change.”

“In order to be agile, you have to very organised.

Trying to be agile is difficult because you have a lot of different types of projects, different mandates, and a lot of different requirements to meet all at the same time.

Creating an agile environment takes a lot of organisa12

tion, but it’s paramount to support a digital enterprise” A consistent message throughout the digital transformation has been one surrounding data management and access to data, and Hall recognizes that in order to achieve this vision of accessible data, there must be infrastructure supporting it.

“When talking about the infrastructure, security goes hand-in-hand with it in today’s world,” he says.

“You need a backbone that can carry your data as fast as possible and as securely as possible.”

“We live in a very “right now” world, where users have no patience for slowness anymore.”

Hall believes that if a company doesn’t have an efficient and robust infrastructure, it does not matter how “slick and cool” the data management and collaboration tools are, if they are slow and poorly managed, they will fail to be adopted by the business

SEPTEMBER 2018

TECHNOLOGY

13

“ WE LIVE IN A VERY “RIGHT NOW” WORLD, WHERE USERS HAVE NO PATIENCE FOR SLOWNESS ANYMORE” — Chris Hall, VP Global Information Technology at KEMET Electronics Corporation

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

KEMET ELECTRONICS

14

“We have a culture of striving to be more innovative and not resting on our heels.

That’s key to delivering success on a wider scale on larger projects” — Chris Hall, VP Global Information Technology at KEMET Electronics Corporation

SEPTEMBER 2018

This is how digital transformations fail; when you don’t pay attention to the foundational components that are required to support it.

With the first three pillars aligned, KEMET can turn its attentions to data management and collaboration; “the fun branches” as Hall describes them.

Without the foundational pillars in place, any attempts at implementing a company-wide culture shift is futile.

TECHNOLOGY

$1.2B

Approximate revenue

knowledge that we need to be able to extract, share and integrate with all our systems data,” says Hall.

“These collaboration tools are very important in making that

1919

Year founded

a reality.”

Data management in itself is a key topic among many modern businesses, not just IT at KEMET. For some, it is a difficult nut to

16,000 Approximate number of employees

crack as businesses all want better access and better learnings from data, but there is no silver bullet.

Hall understands this, noting that the true key to success in data management is approaching it one project at a time with an eye towards the bigger, long-term

KEMET is implementing Microsoft Share-

goal. “We should enter data once

Point Online as the tool set that enables real

and should be available wherever

time communication between its employees.

we need it.”

This information exchange enables far greater

“To achieve this, it’s not a one

collaboration and “starts moving people away

size fits all technology map,” he

from email.”

says. “You cannot build the perfect

KEMET also utilizes Yammer and other

big data mousetrap, instead you

tools from the Microsoft O365 suite to access

integrate new tools progressively

and share information in real time, enabling

into your data management

an increasingly agile culture.

architecture and achieve iterative

“When you start discussing data manage-

success through greater agility.

ment and making all of our data available, our

Overtime, the full data ecosystem

engineers at all the sites have a wealth of

will begin to take shape.”

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

15

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TECHNOLOGY

An iterative approach is crucial in

cloud model necessary for future

transforming an organization and

digitization projects, KEMET is also

establishing an IT function that is

partnering with Nutanix to better

responsive and proactive. Hall points to

manage and provide the onsite

this approach and its iterative success,

compute for future projects like IoT.

as a means of building belief in the

These are but three examples of how

process and supporting a cultural shift

KEMET is working collaboratively with

throughout the company.

vendors to serve as coaches providing

“To me, doing the work is actually the easy part. We have a culture of striving to be more innovative and not resting on our

core intelligence and best practices to the company.

We are partnering with people who

heels. That’s key to delivering success on

are good at what we are not, and by

a wider scale on larger projects.”

doing so, bringing information and

Another key to the successful delivery of a digitization process and technology transformation is external partners and technology vendors.

To this end, Hall feels that selecting

knowledge into KEMET that will serve us well for years to come.”

No transformation defined by technology can ever truly end, with technology and innovation continuously

the right partner(s) is actually more a case

evolving and redefining industry and

of cultural fit as much as it is a simple

businesses. KEMET is working towards

technological capabilities analysis.

its 2025 vision and Hall has his eyes

KEMET relies on a number of

firmly set on achieving those goals first

business partners. Sirius, a leading

and foremost as a way for preparing

integrator of technology-based

KEMET for the future and beyond.

business solutions, Halls notes, has

He feels that delivering success with

been instrumental in assisting with the

2025 will define the success of the future.

“reinvention of our infrastructure. “IBM is

“To define success, we have to look

a critical partner in assisting with our

at how we deliver against those core

implementation of SharePoint and

pillars,” he says.

other development projects.

To achieve the necessary hybrid-

“By establishing the best infrastructure securely creating a more collaborative

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

17

KEMET ELECTRONICS

Click to watch: ‘The KEMET STORY’

SEPTEMBER 2018

19 company through communication and having all the useful information and data at the fingertips of our business users, we will be successful.”

When broken down, KEMET’s journey can be defined by one real business need and that is to be more agile. All of the pillars of transformation and the technology implementation is designed to make KEMET more efficient, more effective, and more agile to a rapidly changing market.

“The challenges of 2025 will be very different

KEMET Leadership Team Group Photo Top row, from left to right: Robin R. Blackwell, J.D., Fernando Spada, Jamie Assaf, Dr. Phil Lessner, Stefano Vetralla, Tim Herring, Andreas Meier, Chuck Meeks, Masayuki (Max) Nakamura, Claudio Lollini, Fumihiro (Hiro) Katakura, Michael Raynor, Brian Burch, Bob Willoughby, Andreas Hammer, Dr. Johnny Boan, Yang Zhang, .

Bottom row, from left to right: Shigenori (Sean) Oyama, William Lowe, Monica Highfill, Per-Olof Loof, Susan Barkal, Dr. Daniel F. Persico, Yang Zhang.

from the challenges of 2018,” says Hall.

“But if we get it right, if we are better organised and more agile, then we will be able to tackle those future challenges more effectively and successfully.”

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

LEADERSHIP SHOWCASE

20

SEPTEMBER 2018

WIRE BRINGS SECURE

COLLABORATION TO

NORTH AMERICA With the European business embarking on a significant expansion across the United States, we spoke with CEO Morten Brøgger about how Wire supports secure messaging within the corporate sphere WRITTEN BY

CATHERINE S TURM AN

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

21

LEADERSHIP SHOWCASE

F

or any organization, the need for secure messaging technologies has become increasingly vital.

With daily news coverage of data breaches,

malware attacks and poor security practices across North America and globally, awareness of the risks associated with handing over confidential data has been heightened.

It is therefore imperative for businesses to take a proactive approach in enabling employees to utilize vetted, secure, modern chat-based tools.

While email continues to be the main communication channel for many industries, it has also become 22

one of the least secure and effective channels.

“If confidential information gets in the wrong hands, it almost always has a significant financial impact,” Morten Brøgger, CEO of work collaboration platform, Wire, tells us from his San Francisco office.

Establishing Wire, Brøgger has sought to build exceptional communication tools where employees can chat securely, share documents or make voice, video and conference calls, as well as undertake screen sharing in real time.

“Chat-based communication tools are rapidly taking over from email because communications need to be fast and accurate. It is now more SEPTEMBER 2018

23

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

LEADERSHIP SHOWCASE

24

often than not done through tools like WhatsApp, Facebook Messenger, Instagram and Snapchat,” he explains.

“Most consumer tools are free and

increase efficiency and productivity.”

The breach of confidential customer information not only loses consumer trust, but also opens the doors for

financed through ad-based models.

potential penalties from data protec-

This inevitably means sacrificing

tion agencies. With this in mind, Wire

privacy, especially if the same device is

has developed a world-class end-to-

used for work, which then puts work

end-encryption (E2EE) tool, making

security in jeopardy.

work faster, more efficient and more

“By switching work conversations to chat-based tools, it would help reduce time spent on internal email by 50%.

secure than working with other outdated digital tools.

“Many customers have commented

Being able to use the same secure tools

how useful they find Wire’s ‘guest room’

for external communication would further

feature. This allows them to chat and

SEPTEMBER 2018

“Launching end-to-end encrypted chat, conferencing, video calls and file sharing on desktop and mobile with great user experience in just nine months is something no-one else has matched” — Morten Brøgger, CEO, Wire

25

talk to external parties who don’t have

month after Wire in April 2016) and two

Wire installed – it just works in a browser

years later still offers only 1:1 voice calls.

window,” says Brøgger. “The benefit

Wire has had encrypted conference

they mention is being able to use the

calls since its launch.”

same software and security for not just internal but also external communication.

“Launching end-to-end encrypted

OPEN SOURCE ADVANTAGES While E2EE is more commonly

chat, conferencing, video calls and file

witnessed within consumer communi-

sharing on desktop and mobile with

cations for enterprises, secure

great user experience in just nine

communication has become an

months is something no-one else has

essential focal point. Brøgger explains

matched,” he adds. “For comparison,

that corporate users had not previously

WhatsApp’s team worked on the same

had access to such an easy-to-use

functionality for two years (launching a

collaboration tool as Wire’s software. w w w. b u s i n e s s c h i e f. c o m

LEADERSHIP SHOWCASE

Established in Germany, the companyâ&#x20AC;&#x2122;s largest markets remain within the US, Canada and the European Union, where over 100,000 people in more than 200 enterprises regularly access its services. The company is bolstered by an impeccable team, with many members have worked at the likes of Skype, IBM and Cisco.

Fully adopting a 100% opensource strategy, the business remains ambitious to build communications tools of the

26

future, in terms of functional-

SEPTEMBER 2018

ity, security, privacy, as well as

“Open source forces us to write quality

an exceptional user interface, to

code, motivates our staff, makes it easier to

ensure complete transparency

engage external developers and partners

across its business practices.

and simplifies building integrations.”

“Wire’s focus on open source

“Everything on Wire, by default, is protected

means that anyone can audit our

with E2EE – only the sender and receiver

code for quality and verify our

can see the contents of the messages. Wire

security claims. Many have

does not have any decryption keys, placing

commented on that the fact that

responsibility firmly on our customers. There

Wire believes in open source,

are also no available backdoors created

takes transparency to heart

within the software,” he continues.

and leads the way to push the

“This is a big difference from competitors

collaboration software industry

like Microsoft Teams or Slack where all

to a more secure and privacy-

messages and files are available to anyone

friendly future is important to

with access to the server – including the

them,” says Brøgger.

service provider or malicious actors.”

“Most consumer tools are free and financed through ad-based models. This inevitably means sacrificing privacy, especially if the same device is used for work” — Morten Brøgger, CEO, Wire

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

27

LEADERSHIP SHOWCASE

COMPLEX REGULATIONS

organizations servicing the

Throughout its focus on driving

European Union (EU) to

exceptional E2EE services,

publish any data breaches,

Wire has, of course, had to

providing ultimately transpar-

adapt its offering towards

ency. Additionally, the rulings

evolving worldwide regulatory

will also ensure that all

demands, such as the

companies serving European

European General Data

citizens remain open about

Protection Regulation (GDPR)

third party tools which receive

rulings, which requires

access to customer data.

28

SEPTEMBER 2018

FACTS

By implementing

• Wire’s ‘guest room’ feature allows users to chat and talk to external parties who don’t have Wire • Established in Germany, Wire’s largest markets remain within the US, Canada and the EU

a privacy by design approach, Wire has sought to go above and beyond traditional approaches to securing customer data and has gained the ability to integrate its services with other software, providing a seamless experience.

“GDPR does not just affect EU businesses, but any company in the world serving customers in the EU. A lot of these companies will not be ready in terms of protecting their customer data with encryption,” observes Brøgger.

This has already been documented, with the media claiming that many US websites in particular have barred European users from accessing their services.

While some US businesses will already have most of the appropriate security measures in place, issues such as BYOD (bring your own device) and use of messaging services as mentioned above are becoming increasing w w w. b u s i n e s s c h i e f. c o m

29

LEADERSHIP SHOWCASE

30

“ WhatsApp’s team worked on the same functionality for two years and still offers only 1:1 voice calls. Wire has had encrypted conference calls since its launch” — Morten Brøgger, CEO, Wire

SEPTEMBER 2018

prevalent across North America, and won’t be accepted under the new regulation for any business dealing with the data of EU citizens.

Becoming a frontrunner across all markets, Wire has issued a new golden benchmark through its E2EE solutions. It has now sought to support other businesses by effectively mitigating risks of potential data leaks to third party sites.

“If your organization has had a security incident then your image and trust is threatened,” says Brøgger. “Ultimately, customers and partners will try and find other places to buy or partner up where their data can be trusted.

31

“As privacy awareness goes up consumers will start ‘voting with their feet’ and avoiding companies with questionable security and privacy practices.”

Setting up a sales office in San Francisco, Wire’s services and capabilities are set to further grow across North America. Its new service, Wire Red, will form part of its evolution, and enable enterprises to use this service as a communication contingency plan. “Our end-to-end encryption and security by design allows for large companies to continue to conduct business as normal even when they’re in the midst of a crisis,” concludes Brøgger. w w w. b u s i n e s s c h i e f. c o m

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TECHNOLOGY

LEWIS DRIVING CHANGE 34

THROUGH TECH SHE CAN

Despite decades of progress, women remain significantly underrepresented in the UK’s technology workforce.

With PwC’s Tech She Can charter looking at ways to break down barriers, LEWIS’ Managing Director Ruth Jones discusses how technology is reshaping career pathways WRITTEN BY

SEPTEMBER 2018

CATHERINE S TURM AN

35

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

TECHNOLOGY

T

he fourth industrial revolution is significantly disrupting the way we live, work and interact.

Traditional industries and ways of working are

being fully transformed through digitisation, yet

it is imperative that a diverse, global workforce can adapt to such change.

However, despite such a monumental shift, women continue to be underrepresented within the global technology workforce. A recent report

by PwC entitled Women in Tech: Time to close the gender gap, highlights that women, on this occasion in the UK, remain discouraged from working in technology, with 83% of female students unable to name a famous female role model in technology 36

and only three per cent stating a career in technology to be their first choice.

“As our personal and working lives become increasingly shaped by technology – technology products and services are being developed and delivered based on the perspectives of only one half of the population, and not designed with the needs of everyone in mind,” the report states, adding: “If half the population is being overlooked as a source of technology talent, then the UK is effectively trying to compete internationally with one hand tied behind its back.”

Global professional services network PwC has found that gender bias starts in schools and carries on through each stage of a child’s education. 61% of females indicated that they have been dissuaded from a career in technology due to the limited SEPTEMBER 2018

“ WE’RE FINDING A SHIFT IN THE INDUSTRY, WHERE IF WE PUT CREATIVITY, CONTENT AND CONTEXT AT THE HEART OF EVERYTHING WE DO, WE’RE ABLE TO OFFER CLIENTS A SINGLE VIEW BUT ARTICULATE IT ACROSS TECH-BASED PLATFORMS” — Ruth Jones, Managing Director, LEWIS

37

advice given. “Although heavily involved in STEM subjects at a younger age, I was discouraged by the sexism that surrounded me when I took part in competitions and conventions,” a female pre-university student noted.

“There is a stereotype that empirical studies are male subjects only, and the institution to which I currently belong perpetuates this belief obliquely. I felt discouraged from taking the sciences,” another female pre-university student added. This must change. w w w. b u s i n e s s c h i e f. c o m

TECHNOLOGY

“ THE INDUSTRY AS A WHOLE IS NOW LOOKING AT HOW TO SHAPE LEARNING FOR THE FUTURE, AND THIS SNEAKS INTO ADULT LEARNING, AS WELL AS THE FUTURE CAREER PATH” 38

— Ruth Jones, Managing Director, LEWIS

TECH SHE CAN CHARTER In order to take a closer look at the root causes of women’s reluctance at a societal level, PwC has launched its Tech She Can charter. Joining over 30 organisations across the UK, global integrated communications business, LEWIS, has made commitments to promote careers in technology for both genders, looking to enable workers to reach their potential and to share best practices.

Established by former Financial Times SEPTEMBER 2018

39

journalist Chris Lewis in 1989, LEWIS has

held by women, where flexible

evolved from a news-driven agency into

working schemes have enabled

a company that defines a central market-

working mothers to return to

ing strategy stemming from brand develop-

work, alongside the enhanced

ment and PR, to sales enablement and

maternity packages and shared

digital execution.

leave on offer to staff.

As part of the charter, LEWIS will work

“When women think of a career

to show how women can enjoy the technol-

inside technology, it doesn’t

ogy sector but also develop great careers.

necessarily need to be working

In the company’s UK workforce, 55% of

directly with data, digital or ICT.

senior positions (Director and above) are

It can be a career in the creative w w w. b u s i n e s s c h i e f. c o m

TECHNOLOGY

Click to watch: ‘LEWIS Global Communications, Does gender or age matter in creativity?’

40

industries that supports companies in

tions, there is wide recognition that

technology and applies technology to,

customer journeys need to become

for example, marketing services,”

one, common conversation. We’ve

explains Ruth Jones, Managing Director.

seen that in the industry.”

“We’re finding a shift in the industry, where if we put creativity, content and

PROMOTING EDUCATION

context at the heart of everything we do,

At present, only 15% of people working

we’re able to offer clients a single view but

in STEM roles in the UK are female,

articulate it across tech-based platforms

indicating that the country’s future

and channels – from infographics

technology talent will remain heavily

through to 3D experiences, as well as

male-orientated. In addition, recruiters

the traditional written word.

have expressed their concerns

“Through a collision of marketing, digital, technology and communicaSEPTEMBER 2018

surrounding the difficulty of recruiting knowledgeable, skilled individuals

FACTS

within STEM. A Global CEO survey has revealed that two thirds of UK CEOs say recruiting people with digital skills is difficult, compared with only 43% of CEOs in the US and 24% in China.

With this in mind, providing in-house training, as well as funded apprenticeship pro-

PwC’s Tech She Can Charter The Tech She Can Charter was launched by PriceWaterhouseCoopers in February 2018, joined initially by over 12 firms including giants such as Tesco and JP Morgan, with many more having since been added.

The main commitments organisations have made as part of the charter are:

grammes, LEWIS remains keen to offer permanent positions, with the aim to be part of the personal and professional development of its employees.

By partnering with schools, providing female role models and ensuring inclusive access to the sector, UK organisations will then gain the ability to build a robust upskilled and adaptive workforce, introducing technology modules which can be delivered in schools by teachers or through virtual reality to develop the UK’s technology talent.

“We also go to universities

• Working with schools to inspire pupils and teachers about careers in tech • Supporting social mobility by targeting schools in the UK Government’s defined social mobility ‘coldspots’ • Promoting and celebrating successful female role models at all levels • Ensuring inclusive access to technology training and technology roles within their own organisation • Supporting formal work experience and internship programmes to encourage more females to consider a career in tech • Sharing best practice with all other organisations across the charte

and spend a lot of time giving talks around careers at various different universities, here at LEWIS. We also have a partnerw w w. b u s i n e s s c h i e f. c o m

41

TECHNOLOGY

“THROUGH A COLLISION OF MARKETING, DIGITAL, TECHNOLOGY AND COMMUNICATIONS, THERE IS WIDE RECOGNITION THAT CUSTOMER JOURNEYS NEED TO BECOME ONE, COMMON CONVERSATION” — Ruth Jones, Managing Director, LEWIS

42

ship with Chelsea College of Art,

continues to evolve the way in

so connecting through educa-

which individuals can develop

tion is something that embodies

a technology career, with a num-

us,” explains Jones.

ber of roles available.

“We’re looking to invest more.

“Technology is central to every

The industry as a whole is now

part of our lives. Children and

looking at how to shape learning

young adults are coming into the

for the future, and this sneaks

workforce digitally enabled.

into adult learning, as well as

Everyone’s going to have a nat-

the future career path. Ultimate-

ural affinity for technology and

ly, we’re entering a world where

they’re going to see a much

continuous learning is an abs-

clearer path to why technology

olute necessity.”

plays a central part in our every-

While only 5% of leadership positions in the technology

day lives,” notes Jones.

“The single most important

industry are presently held by

thing for me is attracting more

women, where girls are less

people into technology so that

likely to study STEM subjects at

we can support the economy

school or university, technology

going forward.”

SEPTEMBER 2018

43

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

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City Focus

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SAN FRA SEPTEMBER 2018

ANCISCO A popular travel destination for both business and tourism, San Francisco is home to an eclectic cultural mix which reflects its diverse economy WRITTEN BY

CATHERINE STURMAN

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

47

CITY FOCUS | SAN FRANCISCO

48

SEPTEMBER 2018

K

nown as ‘Golden Gate City’, San Francisco’s stunning landscapes, robust infrastructure and

exceptional living standards make it one of the fastest-growing cities in America.

Underpinned by a global epicentre of technological advancement, talent remains high, with many opportunities available for those who wish to grab them across the Bay Area and the city of San Francisco.

Second only in the US to New York City, the population of San Francisco is set to surpass 960,000 by 2035, leading to a number of challenges in housing, employment and infrastructure. In 2017, the number of visitors to the city reached 25.5mn, amassing $9.10bn in total spending. This year, the city has forecast a total of 26.3mn visitors, with spending projected to reach $9.46bn.

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

49

CITY FOCUS | SAN FRANCISCO

THE DOT.COM BUBBLE Leading on from the dot.com bubble, the emergence of social media and consumer technologies, the Bay Area has become a dominant force within business innovation and financial advancement. Silicon Valley, situated in Santa Clara County, has attracted some of the most respected names in technology, with 29 Fortune 500 companies locating their headquarters in the city, such as Google and Apple. In 50

2016, the city gained a GDP of $781bn, leading the region to remain a global digital hub. The tech giants are two of the most valuable companies in the world, inspiring entrepreneurs to achieve the same level of success.

The number of technologyfocused positions continues to rise, with product development engineer and product management roles providing an average salary of $173,570 and $173,556 respectively, according to Indeed. Data analytics, cloud technology, software developSEPTEMBER 2018

51

ment, DevOps and machine learning are also particular areas of focus for technology companies across the city.

Fully inspiring a raft of start-up ventures, the Bay Area’s global position has led the city of San Francisco’s educational facilities to also up their game, transforming it into one of the most prestigious areas of learning in the US, with 50% of residents obtaining a degree.

Supported by its strong economic growth, the city is renowned for providing some of highest incomes in the US within the technology, finance and healthcare sectors, as San Francisco continues to drive increased tourism.

960,000 San Francisco’s projected population in 2035

80,000

the number of tourism jobs in 2017

43,000

number of jobs created

by San Francisco International Airport w w w. b u s i n e s s c h i e f. c o m

CITY FOCUS | SAN FRANCISCO

CHANGING PRIORITIES With a longstanding reputation in the world of finance, made clear by the number of banks, real estate firms and law corporations situated within the cityâ&#x20AC;&#x2122;s iconic Financial District, an established tax exemption for biotechnology companies has now also led to a significant boom in healthcare roles in San Francisco and the Bay Area. While the University of California has focused its efforts on promoting biomedical innovation at 52

SEPTEMBER 2018

the 20 facilities under its umbrella,

restaurant and entertainment scene.

it is also the parent organisation of the

For tourists, popular sites such as

University of California San Francisco

Fishermanâ&#x20AC;&#x2122;s Wharf and the Chinatown

Center. San Francisco State University

District celebrate San Franciscoâ&#x20AC;&#x2122;s

also houses over 30,000 students

varied heritage, where the number of

with over 500 courses on offer.

jobs in the tourism industry exceeded

Taking full advantage of its rich

80,000 in 2017, delivering over

multicultural history and artistic flair,

$714mn in taxes and fees. Overseas

San Francisco has also catered to

spending represented over 86% of

those who wish to study and work

total visitor spending in the same year,

within art, design, film or music, as

with China leading the way at $1.59bn.

well as baking and hospitality, in order

India, the UK, South Korea and Taiwan

to provide for its infamous bustling

followed close behind.

53

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

CITY FOCUS | SAN FRANCISCO

ONGOING GROWTH With a growing surge of white collar workers and tech enthusiasts, those in lower-paid roles have been priced out of the housing market, with the average income in the city reaching $118,400. In the first half of 2018, San Francisco's median house price rose by $205,000, smashing records.

The average price for a home in the city now exceeds $1.62mn.

To support its subsequent 54

growth and appeal to residents

SEPTEMBER 2018

$714mn taxes and fees contributed by tourism in 2017

$205,000 rise in house prices in 2018

$8.4bn

business generated

by San Francisco International Airport and visitors, the city continues to bolster its ability to remain a top destination, placing heavy investment within its transportation links. Those in the Bay Area can take advantage of the Bay Area Rapid Transit (BART) system, linking with smaller urban areas and counties nearby. Additionally, the Caltrain commuter line connects San Francisco Peninsula and Santa Clara County.

Thirdly, the city remains one of w w w. b u s i n e s s c h i e f. c o m

55

CITY FOCUS | SAN FRANCISCO

56

the last places to maintain its historic

largest international terminal in North

cable car system, the San Francisco

America, San Francisco International

Municipal Railway, a significant tourist

Airport has been consistently named

attraction. Affectionately known as

as one of the best airports on the

Muni, the system has been modern-

continent, generating close to

ized to propel users to their destina-

43,000 direct jobs and $8.4bn in

tion, to the delight of tourists and

business activities. The facility also

residents alike.

plays a key role in international trade,

For those who regularly fly in and out of San Francisco, the city

having facilitated close to $54.6bn of imports and exports in 2016.

focuses heavily on delivering excep-

Not content in delivering world-

tional customer service. Home to the

class infrastructure and world-class

SEPTEMBER 2018

57

employment opportunities, San

become increasingly popular in order

Francisco ensures all new develop-

to reduce costs, congestion and

ments are built with sustainability in

pollution levels, leading the city to be

mind. The first US city to provide a

the home of several startup ventures

park within a 10-minute radius for

and renewable energy initiatives,

each resident irrespective of their

powering local businesses and homes

location, the city is home to a number

with solar energy.

of green spaces, parks and beaches

Technology will continue to drive

which are easily accessible; subse-

San Franciscoâ&#x20AC;&#x2122;s ongoing rise, keeping

quently, it has been ranked one of the

it as a top destination for thrill seekers

â&#x20AC;&#x2DC;most walkable citiesâ&#x20AC;&#x2122; in the US.

and corporate travellers throughout

Cycle-sharing and carpooling have

the years to come. w w w. b u s i n e s s c h i e f. c o m

50 CPOs 250 Peers Tons of fun!

Save 25% off your ticke

Visit www.ProcureConIndire

September 24 - 26 | Scottsdale, AZ

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ect.com for more information

T O P 10

Top 10

60

biggest

hotel chains Here are the largest hotel chains in North America, according to their 2017 revenue figures WRITTEN BY

SEPTEMBER 2018

CATHERINE STURMAN

61

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

T O P 10

09

Extended Stay America $1.28bn

Featuring popular destinations, such as New York, Washington DC, Miami and more, Extended Stay America has close to 630 properties spanning the US and Canada. The chain is targeted

10

G6 Hospitality LLC

62

$636mn

to customers on a budget, with spacious, pet-friendly suites and high specifications on offer across its locations. Catering for families, corporate businesses and short-stay travelers

With an estimated revenue of $636mn in

alike, children can stay for free, with

2017, G6 Hospitality has launched three

a multitude of choices for a varied cus-

brands to cater to its diverse demo-

tomer market. Headquartered in North

graphic, and embraced franchising to

Carolina, the business listed on the

further business growth. A subsidiary

New York Stock Exchange in a ‘paired

of French hotel chain, Accor SA, the

share’ with ESH Hospitality, Inc. www.extendedstayamerica.com

company has launched its longstanding economy brand, Motel 6, in 49 states, and five Canadian provinces. Similarly, its extended stay brand, Studio 6, aims to reinvent economy lodging and transform the guest experience. In 2014, the business added two new brands to its portfolio – Hotel 6 and Estudio 6, in a bid to enter the Latin America market. www.g6hospitality.com

SEPTEMBER 2018

07

Wyndham Hotels & Resorts $5.1bn

Situated in 66 countries worldwide with 8,000 hotels in its portfolio, Wyndham Hotels & Resorts has established 15 hotel brands. Within its portfolio, the business caters to

08

Choice Hotels $1bn

those on a budget with brands such as Travelodge, as well as corporate guests with brands such as Wyndham Garden. In recent years the group has won a number of accolades, in particular

One of the largest and most successful

for its rewards program which has been

lodging franchisors in the world, with

commended by US News and World

names such as Clarion, Econo Lodge,

Report, IdeaWorks and USA TODAY. www.wyndhamhotels.com

Comfort Inn and Comfort Suites under its umbrella, Choice Hotels caters to both corporate and leisure demand.

With more than 6,800 rooms on offer, the business franchises over 6,300 properties, ranging from economy to luxury properties. In a bid to further expand its service offering, the business has recently finalized an agreement with C&O Bloomington to develop the Cambria Hotel Minneapolis at Saint Paul Airport, set to open in 2019. www.choicehotels.com

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

63

T O P 10

05

AccorHotels $2.24bn

The largest hotel situated outside of US, pioneer Accor Hotels hosts up

06

InterContinental Hotels Group $1.78bn 64

to 500,000 guests each day across 25 hotel brands. In 2016, the business merged with FRHI Hotels & Resorts, where the FRHI Global Reservation Centre in Canada has been rebranded as Accor Hotels Global Reservations

Known for building superior brands,

Centre. From affordable, valuable comfort

with over 5,400 hotels worldwide, Inter-

brands such as Ibis, to high end luxury

Continental Hotels Group (IHG) gained

names, each houses its own vision to

revenue of $1.784bn in 2017, and bought

improve its services and aims for oper-

a 51% stake in Regent Hotels for $39mn

ational excellence. Looking to enter

earlier this year. Adopting a franchised

new markets, and is set to launch new

model, the business currently has 1,776

lifestyle brand, JO&JOE, which will

hotels in the pipeline, with 974 properties

cater to a growing millennial market in

under its portfolio. Its breadth and scale

regions such as Europe, Asia Pacific

covers 15 brands, serving a diverse client

and North and South America.

market in up to 100 countries, with more

www.accorhotels.com

than 100mn members enrolled in its rewards club. Not content with providing services in over 100 languages through its 18,000-strong sales team, the businessâ&#x20AC;&#x2122; food and beverage capabilities are also second to none, having contributed up to 15% of gross revenue in 2017. www.ihgplc.com SEPTEMBER 2018

03

Best Western $6bn (estimated)

Winning a multitude of awards and operating over 2,000 hotels in North America alone, privately held hotel operator Best Western boasts 4,200 hotels and motels under its umbrella.

With three innovative brands: Best Western, Best Western Plus and Best Western Premier, the business provides

04

Hyatt Hotels Corporation $4.69bn

exceptional services to 58mn members in the US and Canada. The company’s most popular loyalty program, Best Western Rewards (BWR), comprises 35mn members and has earned top rankings on the US News & World

Since going public in the 1960s, US

Report’s Best Hotel Rewards Programs

based Hyatt Hotels Group has grown

list for six years in a row.

to 750 properties in 54 countries.

www.bestwestern.co.uk

The group is continuing to expand its portfolio across Latin America and the Caribbean, and has recently opened a number of new locations in Central and Latin America across several of its key brands, such as Hyatt Place, Grand Hyatt and Hyatt Centric. In total, the group has about 45,000 staff and total assets amounting to $3.52bn, as of 2017. www.hyatt.com w w w. b u s i n e s s c h i e f. c o m

65

T O P 10

66

PICTURE BY

LORDRUNAR

02

Hilton Worldwide $9.14bn

Founded in the early 20th century, Hilton Worldwide has become one of the most famous hotel and resort companies in the world. Adopting a franchise model, the business has 14 brands, situated in six continents.

Additionally, Hilton is set to open over 10 new hotels worldwide by the end of 2018, highlighting its continual bid to unlock opportunities in new and existing markets. www.hilton.com SEPTEMBER 2018

01

67

Marriott International $22bn

Surpassing all other hospitality chains, longstanding hospitality juggernaut Marriott International operates in over 125 countries, franchising more than 6,500 properties. The largest hospitality provider in the world, its vast footprint has enabled it to gain a loyal following, as it seeks to put its customers first whilst pursuing excellence across its 30 award-winning brands. Negotiating competitive rates for customers worldwide, the business acquired Starwood Hotels & Resorts in 2016 for $13bn, the largest-ever acquisition of a hotel chain. Marriott remains committed to delivering exceptional guest experiences, gaining 110mn combined loyalty members across its three programs: Marriott Rewards, Starwood Preferred Guest and The Ritz-Carlton Rewards. www.marriott.co.uk PICTURE BY

ANOUCHKA

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

TECHNOLOGY and the CHANGING FACE of MORTGAGE LENDING The downturn in the mortgage lending market around a decade ago resulted in financial regulators imposing strict requirements on borrowing. New technology has been crucial to ensuring operations run smoothly, however as Joshua Hebert, Senior VP and CIO of Highlands Residential Mortgage explains, rather than being a hindrance, this has turned out to be a win-win for the industry WRIT TEN BY

LEIL A HAWKINS PRODUCED BY

ANDY TURNER

HIGHLANDS RESIDENTIAL MORTGAGE

T

he downturn in the mortgage

was like buying a car,” he says.

lending market around a

“You sit in front of someone and

decade ago resulted in

fill out reams of paper, but now a

financial regulators imposing strict

consumer completes an online

requirements on borrowing. New

application, and provides all of

technology has been crucial to

the necessary information to us.”

ensuring operations run smoothly,

70

On a broader scale, it enables

however as Joshua Hebert, Senior VP

the organization to operate with

and CIO of Highlands Residential

more flexibility in a fluctuating

Mortgage explains, rather than being

market. “There is a constant

a hindrance, this has turned out to be

disruption where volume goes up

a win-win for the industry.

and down” Hebert explains. “It’s

Highlands Residential Mortgage,

cyclical to some degree due to

founded in 2010, has seen explosive

the timing throughout the year

growth in the last five years. To help

when people buy their homes, but

manage this the organization reached

you have to utilize technology to

out to Joshua Hebert, who has over 15

make it very flexible, especially in

years’ experience in mortgage banking.

cost. The old days of buying a

The financial crisis of the late nough-

solution outright and trying to use

ties brought with it increased regulation,

it over the next three to five years

but Herbert explains that this has in fact

is not as prevalent anymore. Now

lent itself well to technology. “Now we’ve

it’s like leasing technology, you’re

got to put all these requirements in

paying either per unit or per seat

place, what better solution is there than

and a lot of times those contracts

technology to do that?” he explains. “It

are written in a way that’s very

created a level playing field amongst all

flexible, so if your company grows

the companies in this industry, because

the technology and the cost grow

now everyone has to operate in the

with it, if the company downsizes,

same way.”

the cost comes down.”

It has also transformed the experience for customers. “For many years it SEPTEMBER 2018

As a result, Highlands has switched from CAPEX (the

TECHNOLOGY

capital expenditure model) to OPEX (the

“where they ultimately manage,

operating expense model), where they

service and support all of those

pay-per-site and employee rather than

types of technology for me so

paying upfront costs.

I no longer have to, from a

To support this change Highlands partnered with Computex, an IT solutions provider

strategic standpoint.”

“From network to voice to

headquartered in Houston, Texas. Hebert

cybersecurity to technology

explains that Computex took Highlands’

support, all of it has been

infrastructure and support needs, which were

enhanced” he says. “We had

mainly centred around a traditional IT

support from 9-5 before, now

structure, including the voice, network and

we have it 24-7. We did it in

subdirectory, and helped transform it into a

such a way that I didn’t have to

managed service provider (MSP) model,

hire a whole bunch of people to 71

“ The amount of effort, time, communication and collaboration we go through on every single loan makes us different” — Josh Herbert, Senior VP and CIO of Highlands Residential Mortgage

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

HIGHLANDS RESIDENTIAL MORTGAGE

maintain it because ultimately, we’re using a managed services provider to do it.

We’re able to build the model out to its predictive cost, whereas in the past, when we would do a proforma to see if a particular branch location was going to be profitable based on how we do business, they would always come up with an arbitrary number and it was very difficult to determine the total cost of technology for that location.”

Computex use the most up-to-date technology, allowing Herbert and his 72

team to focus on the more strategic aspects of the business. “Things that are very industry-specific like the consumer experience and fraud, areas that are ultimately going to drive the business forward, that can bring in additional volume for the organization.”

In terms of fraudulent activities, new regulations have weeded a lot of these out, however issues like phishing and fake pay stubs still occur because of how easy it is to create bogus payslips. “But there are a lot of solutions that can analyze these and make a phone call to the employer to validate whether that pay stub is truly accurate and that person really does work at that organization,” Herbert explains.

SEPTEMBER 2018

TECHNOLOGY

73

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

HIGHLANDS RESIDENTIAL MORTGAGE

While interest rates may be high,

differentiator. “We are very nimble so

making property buying less afford-

consumers are coming at us with all

able, and the market as a whole has

kinds of different scenarios. It could

slowed down as far as mortgage

be their credit or the timing in which

applications go, Highlands has had a

they need to get their loan done. We

record year of growth. Hebert

are able to support someone closing

explains that what sets them apart

a loan in as little as 10 days if that’s

from their competition is their cus-

what is needed, when most of the

tomer service. “The amount of effort,

larger organizations take between

time, communication and collabora-

25 and 60 days.”

tion we go through on every single loan makes us different,” he says.

He also cites their agility as a key

In addition, Highlands was named as one of the 50 best companies to work for in 2015 and 2016. Hebert puts this

hardware. software. brainware.

Computex Technology Solutions is an award-winning solutions provider with over 30 years of experience helping clients evolve their business through technology.

At our core, we are architects and engineers that specialize in delivering data centers, enterprise networking, cybersecurity, cloud and managed services & emerging technologies with offices in Florida, Georgia, Michigan, Minnesota & Texas.

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www.computex.net

TECHNOLOGY

“ We are able to support someone closing a loan in as little as 10 days if that’s what is needed, when most of the larger organizations take between 25 and 60 days” — Josh Herbert, Senior VP and CIO of Highlands Residential Mortgage

75

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

HIGHLANDS RESIDENTIAL MORTGAGE

“The old days of buying a solution outright and trying to use it over the next three to five years is not as prevalent anymore” — Josh Herbert, Senior VP and CIO of Highlands Residential Mortgage 76

down to being a small, independent

and challenge each other. We’re all

organization. “We’re not bank-owned,

about supporting our employees.”

we’re a family-oriented laidback

Since Hebert joined Highlands in

company, so from a cultural stand-

2016, he cites his biggest achievement

point we’re not constantly breathing

as revamping the organization’s IT

down your neck. We don’t just talk

operations. “Overhauling the infra-

about leadership, we live it. We are

structure was very much about our

very much about hiring qualified,

internal employees, and we needed to

quality employees who can get the job

build that foundation. Now we have

done with little to no micromanaging

that in place we can go out and put

in a heavily regulated environment

these strategic technologies in, that

where you have to know your stuff, but

will ultimately bring in additional sales

at the same time we like to have fun

and loans.”

SEPTEMBER 2018

TECHNOLOGY

77

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78

SEPTEMBER 2018

TECHNOLOGY

Chayora: INTERNATIONAL SCALE IN CHINAâ&#x20AC;&#x2122;S DATA CENTRE SPACE WRIT TEN BY

DA LE BENTON PRODUCED BY

MIK E SADR

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

79

C H AY O R A

CHAYORA DELIVERS HYPERSCALE INFRASTRUCTURE IN CHINA, CONNECTING INTERNATIONAL LEADERS TO THE MOST EXCITING MARKET IN THE WORLD ith just under 20% of the world’s online community existing within the country, and with annual user numbers growing faster than anywhere else, China is one of the most exciting online technology markets in the world. In 2017, the State Council also set out a vision to establish China as the number one artificial intelligence hub globally, identifying AI as a key driving force of the country’s economic growth over the next decade.

Last year alone there were 772 million people online in China, representing 56% of the country’s 1.4 billion population. With a huge customer base and with China looking to surpass the United States as the world leader in

W

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SEPTEMBER 2018

GDP terms, it is no surprise that many major international organisations and businesses are increasingly turning towards the country. There are however, many hurdles to clear as access to the technology sector in particular is still subject to tight regulation.

“Those figures alone show that it truly is an amazing market,” says Oliver Jones, Chief Executive of Chayora. “But in order to be able to have access to this massive and valuable population, you cannot operate effectively from overseas. You have to have your servers inside mainland China, in a properly licenced data centre and that’s what starts to present challenges to aspirant new entrants.”

“It is also where we come in. Chayora

TECHNOLOGY

81

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C H AY O R A

82

has invested a significant amount of time and money to operate entirely in line with China’s regulations, laws and ambitions as set out in the Five-Year Plan, in order to enable international companies to access China.”

Chayora is an infrastructure developer focused on the building and operation of data centre platforms, with a series of hyperscale, fully licensed data centre campuses in key locations across China.

Founded together by Jones and his business partners Jonathan Berney who now acts as Chief Operating Officer at the company and Steven Cao, Chayora has a simple vision: to build a trusted international service provider that enables international companies to access this market potential.

“We are aiming to combine the best of China and the best of the international

“ We are aiming to combine the best of China and the best of the international environment, for the benefit of our customers” — Jonathan Berney, Chief Operating Officer, Chayora

SEPTEMBER 2018

environment, for the benefit of our customers,” says Berney.

“And we feel very strongly that being able to contribute to the economic, political and social environment that we operate in is critical.”

2018 will represent a milestone year for the company as it will complete its initial facility, the TJ1 Data Centre, on its hyperscale data centre campus in Beichen, northern Tianjin. Located

TECHNOLOGY

Chayora; the Tianjin Data Centre Campus covers Beijing

83

between Beijing and Tianjin at the heart of 150m people in the tri-province, TJ1, which is targeting an operating date for early 2019, will be the first data centre of the company’s wider Tianjin hyperscale 300MW, 32-hectare (80-acre) campus which will ultimately comprise nine major data centre facilities.

For Jones, this facility is a shining example as to what Chayora can become on the global data centre stage.

“What we want to be is a trusted, hyperscale campus provider and

operator so that when people think China, they think Chayora,” he says.

“It’s an incredibly exciting time for the business as we can enable some of the biggest companies in the world to fulfil their potential in China.”

A crucial element in achieving that vision, something that is arguably more important than the facility itself, is establishing a reputation as an organisation that these international companies can place a great deal of trust in. w w w. b u s i n e s s c h i e f. c o m

C H AY O R A

The population of China at 1.4 billion people accounts for one fifth of the world’s population More than the US (298m), the EU (503m) and the former USSR (293m) combined.

China has the world’s second largest GDP today at $11 trillion 60% of that of the US and predictions suggest that China could overtake the US in 10 years: and be 2x by 2050.

THE EMERGENCE OF CHINA AS THE WORLD’S LARGEST MARKET IS UNQUESTIONABLE 84

China already has the greatest number of Internet users 772 million as of Dec 2017 – 19% of world users.

Internet user saturation in China is just 56% This is compared to USA Internet user rates which are c.93% of the population.

Adoption is extraordinarily rapid with an increase of 36 million in the last 6 months More than the whole population of the UK every year; at least half a billion people in China will be new online users in the next five years.

SEPTEMBER 2018

TECHNOLOGY

85

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

C H AY O R A

Establishing this level of trust starts with Jones and Berney. Both men come from very similar career backgrounds, having worked in a number of consulting, services, engineering and technology focused roles all over the world and specifically across Asia. The two met when they found themselves working together as partners and were tasked with exploring the potential of a large international bank wanting to build and operate a data centre in China.

It is their deep and diverse service 86

View of Tianjin facility under construction

SEPTEMBER 2018

sector experience that Berney feels enables both himself and Jones to have a certain level of confidence and a keen understanding of how to work with large customers on an international scale.

“I think it’s valuable that both Oliver and I have worked in a global environment and also in local environments in Asia and Europe and can recognise and bridge between perspectives” says Berney.

“As entrepreneurs in the fast moving

TECHNOLOGY

and exciting Data Centre market in China, we have the opportunity of recognising and leveraging the very best of what China has to offer, which in Tianjin means new, resilient and very high-quality power infrastructure and highly supportive local government, but also to be able to bounce back from and learn from experiences where we don’t get it right. This means we need to see the “big picture” but not be tripped up by the detail. Ultimately our roles are to create a passionate

belief, communicate our vision and get all our stakeholders to come on the journey with us.”

Chayora’s ambition includes giving global customers a consistent level of international hyperscale data centre facilities like they would expect anywhere else in the world. We want to be a trusted partner and seen as an enabler of our customers’ success in China.

“Trust takes time,” says Jones. “You have to earn it in any sector, but in 87

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

C H AY O R A

“ We feel very strongly that being able to contribute to the economic, political and social environments that we are operate in is critical.”

— Jonathan Berney, Chief Operating Officer, Chayora 88

Click to watch: Jonathan Berney talk to Data Economy ‘China demystified. From data centre leaders to foreign investment opportunities’

SEPTEMBER 2018

TECHNOLOGY

order to earn trust in the data centre market in China it’s not only about building a worldclass facility, it is then about going on to operate it consistently to standards that will satisfy international customer demands.”

Listening to and understanding the customer is essential to delivering these standards, but both Jones and Berney recognise that the company cannot simply rest on the notion that it delivers ‘just enough’ – it has to exceed expectations.

As Berney notes, there are a number of companies that can provide data centre 89

The Chayora Tianjin campus: 9 major Data Centres with 300MW+

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

C H AY O R A

The stunning Tianjin railway station

90

SEPTEMBER 2018

TECHNOLOGY

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C H AY O R A

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facilities in China to international businesses but Chayora’s ambition is to be known as the company which delivers what it promises, all of the time, every time and that what it promises is to achieve international standards of performance, scale and consistent quality that meet the requirements of international customers and are the best available in China.

“To put it simply, we need to deliver value,” says Berney. “We need to deliver value to our customers and stakeholders in order to be trusted by them. That’s critical for us, but what’s ultimately even more important is having a drive for excellence as well. Near enough is never good enough for Chayora.”

SEPTEMBER 2018

TECHNOLOGY

“ We are absolutely crystal clear on the strategy for Chayora; providing the fundamental infrastructure to enable major international companies to access and succeed in China and ultimately deliver prosperity to China.”

— Oliver Jones, Chief Executive Officer, Chayora

93

Click to watch: Disruptive’s interview with Oliver Jones, at Cloud Expo Asia, Hong Kong, 2018

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

C H AY O R A

“ What we want to be is a trusted, hyperscale campus provider and operator so that when people think China, they think Chayora.”

— Oliver Jones, Chief Executive Officer, Chayora

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SEPTEMBER 2018

TECHNOLOGY

That’s what the Tianjin hyperscale campus represents for the company and its customers: a physical manifestation of Chayora’s ambition and drive for excellence.

It shows customers that Chayora is not only incredibly ambitious in its vision but can deliver on it both now and in the future as the company continues its growth journey and adds further campuses to its portfolio.

“We are at a massively exciting moment for our business because it’s a very significant inflection point for Chayora,” says Jones. “The hyperscale market is growing rapidly and it’s growing at an incredible rate. We are absolutely crystal clear on the strategy for Chayora, providing the fundamental infrastructure to enable major international companies to access and succeed in China and ultimately be part of the new and burgeoning prosperity of the country.”

Over the next five years, Chayora will look to add a further four hyperscale campuses across China as it looks to cement its position as the go-to partner for international customers targeting online business in the country.

The future of Chayora will of course be dictated by the evolving marketplace, but ultimately it will be defined by the very same thing it has always been defined by: the customer.

“I can genuinely see us as a business going into new places and a whole series of new directions with our customers,” says Berney. “That comes down to the trust we have developed with them. As they embark on their growth journeys here in China, they want a trusted data centre partner that can deliver and exceed and that is Chayora.”

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

95

Enterprise

optimisation with WRIT TEN BY

ANDRE W WOODS PRODUCED BY

GLEN WHITE

KAR

We talk to Ronald Wright, Senior Director of Procurement and Enterprise Optimisation at KAR Auction Services who talks us through the ever-evolving landscape of auto auctionsâ&#x20AC;¦

K AR AUCTION SERVICES, INC

W

orking across more than 300

Automotive Finance Corporation (AFC),

locations in North America,

among others – are at the heart of

KAR Auction Services

this vibrant marketplace, providing

comprises a family of companies

wholesale and salvage auctions as

providing innovative, technology-driv-

well as detailing, dent repair, logis-

en, end-to-end vehicle remarketing

tics, transportation and more. With

solutions. Auto remarketing is a big

operations spread across North Ameri-

business in North America, with 290

ca as well as the UK, implementing

million used vehicles currently in opera-

a comprehensive, enterprise-wide

tion across the continent. KAR and its

procurement strategy is a strategic

subsidiaries – which include ADESA,

imperative.

Insurance Auto Auctions (IAA) and

98

SEPTEMBER 2018

KAR’s unique platform supports the

S U P P LY C H A I N

sale of more than 5.5mn units valued

because that’s too narrow of a focus

at over $40bn through its auctions.

of what we do. If there needs to be

Ronald Wright is Senior Director of

optimisation of a process, we’re there.

Enterprise Optimisation at KAR and it

If there needs to be optimisation of

is his job to ensure support and supply

a particular project, we’re there. If there

across the company. Just don’t use

needs to be optimisation of how we

the dreaded ‘p word’…

bring value, again, we’re there. If there

“We don’t even use the word

needs to be optimisation in cost, we’re

‘procurement’ here,” he says, speaking

there. That’s why we’re enterprise

from his Indiana office. “We call our

optimisation. We’re not sourcing, we’re

operation ‘Enterprise Optimisation’.

not a supply chain, we’re not procure-

We don’t talk about procurement

ment. Moreover, this umbrella of

99

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

K AR AUCTION SERVICES, INC

enterprise optimisation allows us to

Some of the biggest challenges

come to you with a variety of skills and

facing Wright come from the constant-

solutions in the space.”

ly expanding and retracting need for

A former procurement specialist

100

labour. “We run physical auctions all

from the US defence industry, Wright

52 weeks of the year. As an example,

outlines the operational pillars that

say I have an auction that regularly

have helped his team optimise KAR’s

runs 1,500 cars in a roughly four-hour

growth. “Our team today operates on

period. Now, they need a lot of labour

four pillars: teamwork, adaptability,

to be able to get those cars across the

innovation and trustworthiness. The

auction block. We have to check each

questions we always ask are: what

vehicle in when it arrives at our facility,

are our customer’s needs? What are

we have to upload its information into

their requirements and how do we

our system, we have to line the vehicles

bring those requirements efficiently

up in the order they’re scheduled to be

and effectively to our partners in the

auctioned, and we have to drive them

marketplace, so that we can achieve

across the auction block. We also

the overall goal?”

handle all the transactions and all of

This notion of Enterprise Optimisa-

this is happening at a facility within

tion sees a shift from the traditional

a four-hour period, which requires

sense of procurement as a cost-saving

anywhere from between 100 to 120

measure to a broader, more holistic

temps. Outside of that four-hour

approach. “Our CFO is a unique senior

window, during the rest of the week we

manager, because his first goal is to

have employees handling mechanical

bring value to the organisation. His first

work, detailing, body shop work and

goal isn’t, ‘Hey, how much money can

more – and we have temp employees

you save?’ He does want us to save

helping with other things going on

money, but he’s more concerned about

around the lot.”

the intrinsic value that we can bring to

To help with labour demands KAR

the organisation and our customers. That

has fostered partnerships with some

doesn’t always mean the lowest cost.”

key suppliers. “One of our vendors

SEPTEMBER 2018

S U P P LY C H A I N

BIO

“ WE’RE SEEING THE CHANGING DYNAMICS OF THAT ONLINE BUYER WHO DOESN’T PHYSICALLY COME TO OUR AUCTIONS” — Ronald Wright, Senior Director of Enterprise Optimisation

helps us replace windshields on vehicles. Our business is about velocity, moving cars quickly through our ecosystem and this vendor has been working with us on a number of system enhancements to make us better.

Vehicles now have cameras everywhere and there are 10 to 12 different types of glass.

Our vendor partner helps us to

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S U P P LY C H A I N

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place. We want to be nimble and goal

ing windshields in the digital space,

motivated. It is important that we have

thus increasing the pace at which we

good communication with our supplier

do business.”

partners and a strong understanding

KAR also runs mechanical shops at

of what is expected. We can’t work

many of its physical auctions that do oil

with a supplier that doesn’t have at

changes, tyre replacements and other

least a national footprint or a digitised

modifications as requested by sellers

information system. That system should

and buyers, an area where Wright

track the progress of our working

sees possible partnerships. “We’re

relationship so we can track any

working to build stronger, more strategic

deficiencies and find opportunities

partnerships with key suppliers, but we

for improvement.”

can only do that once we’ve estab-

“For me, I can’t be involved with

lished a rapport with them and have

a supplier that doesn’t have the ability

a successful working relationship in

to give us what I call consumable, w w w. b u s i n e s s c h i e f. c o m

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S U P P LY C H A I N

visualised data that we can do some-

FACT

thing with. I need a supplier to be able

ADESA is a wholesale, usedvehicle auction operation with 75 locations and a complete online service offering for auto dealers, manufacturers, banks, finance, fleet, lease and rental companies.

to tell us that we have a pretty large battery spend, so we are able to drill down to the details of our battery spend to types of batteries we’re ordering, where we are buying them, and which areas of the company are buying the largest amount. You need that clarity in order to be able to find

The first area is how you interact and

value and efficiencies.”

interface with your customer. We’ve been

“One of the unique things about our

trying to move most of our suppliers to

space today is how our industry is

some type of digital interface where we

changing overall. We’re aligning our

can order product. I would almost liken

business and what we do with our

it to what we call the Amazon effect.

suppliers while also meeting the

Nowadays people are used to going

internal needs of our customer. If

online and being able to search and

you’ve ever been to an auction house,

order the things they like and need.”

you’ll know that usually a bunch of

“The second part of that is the

people watch a car come across the

increased level of expectation from the

block before bidding on it. Now, we

customer. Two-day delivery is stand-

simulcast all of our auctions across

ard. ‘We’ll get that to you in a week.’

North America, so people are able to

‘Huh? A week? Are you in the Stone

bid online. We’re seeing the changing

Age? I need to go somewhere else’.”

dynamics of that online buyer who doesn’t physically come to our auctions. We’re working with businesses to look at different ways to deploy our services to our customer base.”

How has technology influenced that, specifically? “I would say in two areas. w w w. b u s i n e s s c h i e f. c o m

105

106

SEPTEMBER 2018

SECTOR

DUNDEE PRECIOUS METALS:

EXPANDING A PORTFOLIO THROUGH OPERATIONAL EXCELLENCE WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

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

107

D U N D E E P R E C I O U S M E TA L S

THROUGH THE TRANSFORMATION OF THE HISTORIC CHELOPECH MINE, DUNDEE PRECIOUS METALS LOOKS TO GROW THROUGH OPERATIONAL EXCELLENCE

I

n the mining industry, there is a belief for some that it is often the smaller exploration and mining companies that take the biggest risks which define

and redefine the status quo.

Dundee Precious Metals (DPM) defines its vision as a progressive gold mining company that unlocks

108

and delivers superior value through innovation and strong partnerships with stakeholders.

One of the company’s goals, is to grow its current mining production to around half a million ounces of gold per year over the next few years. It looks to achieve this by developing a number of projects across its portfolio, which includes exploration and development projects in Bulgaria, Canada and Serbia.

“Part of our strategy is built around possessing the capability to execute projects on time and within budget,” says John Lindsay, Senior Vice President, Project Development. “But it’s also about having the ability to scope a project and to actually understand what makes a project the right project.”

Dundee Precious Metals strives to deliver excellence in sustainability and to create value for all its shareholders, be they investors, government or the SEPTEMBER 2018

MINING

“PART OF OUR STRATEGY IS BUILT AROUND POSSESSING THE CAPABILITY TO EXECUTE PROJECTS ON TIME AND WITHIN BUDGET” — John Lindsay, Senior Vice President, Project Development

109

local community. It aims to deliver this excellence through its commitment to its six core values; safety, dignity and respect, environmental responsibility, community investment, continuous improvement and transparency.

Nikolay Hristov, SVP, Sustainable Business Development, believes this commitment plays a key role in propelling Dundee forward as a company.

Hristov played a lead role in the company’s rehabilitation of its Chelopech mine, located in Bulgaria. Chelopech is an historic mining operation with production starting back in 1954. Over the course of its lifetime, w w w. b u s i n e s s c h i e f. c o m

D U N D E E P R E C I O U S M E TA L S

more than 19 million tonnes of ore

located very close to the nearby village,

have been produced.

not a single square meter of land had

Dundee Precious Metals acquired the mine in 2003 and since then,

between the community and the other

has reinvested the vast majority of

surrounding communities, not just that

its profits to transform the mine into

village, has been a very important com-

a world class operation.

ponent in this journey which is at the very

This transformation started by re-examining the environmental impact of the mine.

“When we acquired the mine there wasn’t much thought given to the environmental impact of the operation,” 110

been rehabilitated. So, the relationship

says Hristov. “Even though the mine is

core of our strategy.”

As a mining operation, the importance of a relationship with a local community and the local government can be the difference between success and failure.

Hristov believes that the key to achieving environmental sustainability

Click to watch: Video timelapse Krumovgrad August 2018

SEPTEMBER 2018

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D U N D E E P R E C I O U S M E TA L S

is born through stakeholder relationships and he identifies the local community as a key stakeholder.

This is echoed by Lindsay. “It’s doing well by doing good. So, if we do the right things in the communities and the countries that we work in then we will succeed as a business. This is a progressive and a credible company that’s going to benefit communities and that allows us to grow.”

A mining company can walk the talk with regards to having a social licence to operate, but it has to be able to point to some consid112

erable successes or achievements that prove it is delivering on its promises.

For Dundee Precious Metals, the most convincing proof that it is indeed doing things right is the company’s Krumovgrad development project in south-eastern Bulgaria. With the company targeting first gold production

“THE RELATIONSHIP BETWEEN THE COMMUNITY AND THE OTHER SURROUNDING COMMUNITIES, NOT JUST THAT VILLAGE, HAS BEEN A VERY IMPORTANT COMPONENT IN THIS JOURNEY WHICH IS AT THE VERY CORE OF OUR STRATEGY” — Nikolay Hristov, Senior Vice President, Sustainable Business Development

SEPTEMBER 2018

MINING

113

in late 2018, and adding more than

would not be successful.”

100,000 ounces per year to the compa-

The company took the project

ny’s production portfolio, Krumovgrad

back to the drawing board, taking

is a project that was “unlocked” by

into consideration the community

applying the company’s community

feedback and retooling its plans

relationship model, that was developed

based on redesigned tailings and

over the years at Chelopech.

processing flowsheet in order to

“It has a long history,” says Lindsay.

“We presented an initial project back in 2010 but there were a number of

successfully develop Krumovgrad as a sustainable operation.

“It demonstrated to the community

concerns from the local community

that we are a company that is pre-

regarding a tailings system and the

pared to listen and prepared to walk

processing method. It was clear that

the talk,” he says. “Originally we were

if we continued down that path we

trying to manage these discussions w w w. b u s i n e s s c h i e f. c o m

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MINING

remotely and we soon realised we

While Chelopech is not the compa-

needed to be talking face-to-face

ny’s only operation, it is a cornerstone

with people in the community. It really

of Dundee Precious Metals’ vision

paid dividends for us and gave us far

of delivering superior value through

more credibility as an organisation.”

innovation and strong partnerships.

In addition to the strong support of

Innovation is key to Chelopech as

local communities, Dundee’s approach

the company has invested heavily in

has garnered the support of other

developing the mine to be one of the

like–minded partners: In 2016 the

most digitally enabled mining opera-

European Bank of Reconstruction

tions in the industry today.

Development (EBRD) invested slightly

Dundee Precious Metals imple-

more than $43 million in the company

mented a ubiquitous wireless network

and noted at the time that the “partner-

throughout the mine, as well as innova-

ship will enable us to work together to

tive hardware solutions that send execu-

further raise standards in the mining

tion information from the underground

sector, focusing on innovation, sustain-

mine directly to the surface to capture,

ability and employment opportunities”.

monitor and gain valuable insights. w w w. b u s i n e s s c h i e f. c o m

115

D U N D E E P R E C I O U S M E TA L S

FACT

Social license to operate

116

It is incumbent on all mining companies to find ways of operating responsibly, and to demonstrate social and environmental responsibility in credible and consistent ways.

Operating responsibly has many faces, including maintaining strong relationships with our stakeholders and minimizing harm to the environment.

It also includes ensuring that our employees are treated well, that they go home to their families safe and healthy, and that we strive to build sustainable communities that survive long after mine closure.

Dundee Precious Metals Chelopech EAD is anchored by its values. The Company continuously pursues progress and development of the mining industry based on technologies, sustainable development and

SEPTEMBER 2018

concerted effort to protect the environment, as demonstrated by a number of international awards.

Our corporate wide community investment policy focuses our community spending toward local development, based on dialogue with local leaders. Our Krumovgrad project will be a model of best practice social and environmental management, and serves as a demonstration of our six Core Values: Safety, Dignity & Respect, Environmental Responsibility, Community Investment, Continuous Improvement, and Transparency.

These, together with the strategic imperatives support the Companyâ&#x20AC;&#x2122;s brand promise: We Succeed Because We Care. â&#x20AC;&#x201D; Nikolay Hristov, Senior Vice President, Sustainable Business Development

MINING

117

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

D U N D E E P R E C I O U S M E TA L S

118

“ CHELOPECH IS A FANTASTIC CASE STUDY WHEREBY TECHNICAL AND TECHNOLOGICAL TRANSFORMATIONS OCCURRED SIMULTANEOUSLY. IT IS A TRUE TESTAMENT THAT TECHNOLOGY AND TECHNICAL PROWESS CAN BE IMPLEMENTED SUCCESSFULLY IN MINING” — Theophile Yameogo, VP of Digital Innovation.

“Chelopech is a fantastic case study whereby technical and technological transformations occurred simultaneously,” says Theophile Yameogo, VP of Digital Innovation. “It is a true testament that technology and technical prowess can be implemented successfully in mining.”

With technology evolving at such an immense rate, so too must companies such as Dundee Precious Metals. As the company looks to the future of technology in mining through artificial intelligence, machine learning and the Industrial Internet of Things (IIoT), it can do so based on the solid foundation of what it has achieved at Chelopech.

“Technology is a never-ending human endeavour. So is our work at Chelopech,” says Yameogo. “As a company we will always build on our past successes to enable and drive new realities and accomplishments.”

But as both Lindsay and Hristov stress, digitisation is all well and good but means nothing without an operational model that can enable and unlock the true value of technology.

“We have spent a lot of time developing a very structured, disciplined operating model that defines how we do our business,” says Hristov. “It’s easy to say we will digitalise but what does that mean? You need to have an underlying process in place.”

SEPTEMBER 2018

MINING

119

For Lindsay this operating model is one of if not the most important developments at the company, as he feels it is something that the company will implement across all of its existing and future operations.

“What do we take away from Chelopech as a business?” he asks. “I think it’s that operating model and the ability to apply that operating model in other projects and other operations gives us an edge. It really sets us up very well to be able to exploit the opportunities that are available through digitisation both now, and in the future.” w w w. b u s i n e s s c h i e f. c o m

Watering a sun-baked state EPCOR is proving a flexible and reliable provider of water services to the people of Arizona: we look at a few of the more imaginative projects currently in hand

WRIT TEN BY

JOHN Oâ&#x20AC;&#x2122;HANLON PRODUCED BY

TOM VENTURO

EPCOR USA INC. / EPCOR UTILITIES INC.

E

PCOR is no newcomer to providing reliable utilities. It traces its heritage back to 1891

when it was established as an electrical power generator and distributor at Edmonton, Alberta – and the City of Edmonton still owns all of the company’s shares. And it was as long ago as 1913 that it built its first water treatment plant at Rossdale. In 2016, EPCOR celebrated 125 years of providing water and wastewater services to some 1.9m people across the Canadian provinces of Alberta, British Columbia and Saskatchewan, and the U.S. states of Arizona, New Mexico and Texas.

122

EPCOR’s first foray into the USA was in 2011 when it acquired Chaparral City Water Company in Fountain Hills, Arizona, followed in 2012 by the acquisition of Arizona American Water and New Mexico American Water, wholly owned subsidiaries of American Water Works Company Inc. Since then it has been building out its facilities and acquiring additional small water and natural gas businesses in Arizona, New Mexico and Texas as opportunities arise, says Engineering Director Andrew Brown. Brown joined EPCOR in 2013, bringing with him 25-plus years of water service experience from the City of Phoenix.

Though arid in parts, and threatened by climate change-induced drought, Arizona SEPTEMBER 2018

CONSTRUCTION

123

Click to watch: ‘#BaskontheSask’

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

EPCOR USA INC. / EPCOR UTILITIES INC.

has a variety of water sources, chief among them the 336-mile long Central Arizona Project (CAP), which diverts water from the Colorado River. Other sources include the Salt River Project canal system and groundwater wells tapping into underground aquifers.

POPULATION DEMANDS AND NATURE’S CHALLENGES

“ The capacity at White Tanks] was stressed so we had to expand”

Brown and his team are respon124

sible for delivering a large annual

— Andrew Brown, Engineering Director

capital improvement program, one of which is the project to expand the White Tanks Regional Treatment Facility (White Tanks), built in 2009 to treat water from the CAP and supply it to consumers. This project provides a good illustration of the challenges faced by EPCOR in the State, and the best practices it is employing to meet them. White Tanks was originally designed to treat 20mn gallons of water per day (MGD) with a firm capacity of 13.4 MGD. The total capacity will be increased SEPTEMBER 2018

CONSTRUCTION

to 33 MGD as part of this project, he explains.

“In recent years our peak demand in the summer has been pushing 19 MGD. The capacity was stressed so we had to expand.”

A further challenge was that a number of events, including heavy rain events and storm runoff in the summer, can result in a surge of particles and mud to the CAP, which disrupts the plant’s treatment ability because of the time it takes for this turbidity to settle out.

When these water quality ‘excursions’ happen, they can last for up to three weeks.

Excursions don’t happen every year, but Brown and his team looked for a way to solve

White Tanks raw water basin

this problem at the same time as expanding the overall capacity of the plant. “We did something unique!” he says. “Besides taking the White Tanks Regional Treatment Facility from 20 to 33 MGD we knew we needed more enhanced treatment technology to address the excursion events and build resiliency in the treatment process.”

The solution ultimately chosen was ‘ballasted flocculation’, which will provide more efficient and effective removal of particulate matter from the water. Conventional flocculation/sedimentation methods were dismissed due to both size and cost constraints.

The ballasted flocculation system chosen for the White Tanks was a CoMag system from w w w. b u s i n e s s c h i e f. c o m

125

EPCOR USA INC. / EPCOR UTILITIES INC.

Evoqua Water Technologies. This uses an inert iron ore by-product called magnetite that attracts the particles and settles them as much as 30 times faster than conventional treatments. Once it has done that, the magnetite can be recovered and reused.

PARTNERSHIP IN PROJECTS Though magnetite flocculation had been used before in the USA for wastewater, the $28.7mn 126

White Tanks Regional Treatment Facility 2019 Expansion and Process Upgrade was the first in the country to use the CoMag system on the water supply end.

It’s a pioneering project for EPCOR, the design team from Water Works Engineers and the contractor Archer Western, all of

Water Station After Photo inside

“We knew we needed some more enhanced treatment technology to take care of these excursion events” — Andrew Brown, Engineering Director SEPTEMBER 2018

CONSTRUCTION

127

Luke 303 WRF aerial close up

whom have worked together before.

The project was won by Archer

facilities – and of course the CoMag plant – are the most important areas of

Western in a competitive tender; work

work currently.” The annual shutdown

started late in 2017 and is on schedule

of the plant – typically between late

to be completed with new treatment

November and early February to

systems online by March 2019. “We are

coincide with a CAP canal mainte-

also constructing a 20mn gallon raw

nance shutdown – will provide the

water reservoir where initial settling

opportunity to complete the expansion

takes place,” explains Brown. “That’s a

and connect it to the existing system.

lot of additional capacity at that point:

At the other end of the water cycle,

then we added some drying beds for

EPCOR is building a brand new

the sludge that is removed. Electrical

wastewater facility in Phoenix’s West

improvements, more back up power

Valley, close to the Luke Air Force Base.

generators, enhanced chemical

It’s of interest because of the phased w w w. b u s i n e s s c h i e f. c o m

EPCOR USA INC. / EPCOR UTILITIES INC.

128

“Electrical improvements, more back up power generators, enhanced chemical facilities – and of course the CoMag plant – are the most important areas of work currently” — Andrew Brown, Engineering Director SEPTEMBER 2018

way in which it is being introduced – there’s both industrial and residential development along the Route 303 corridor that circles the city. “We started by building a small pumping station for the initial flows, and at present we are pumping that wastewater into trucks and hauling it over to another of our facilities nearby for treatment.”

The first phase of the 150,000

CONSTRUCTION

sewage plant. A bigger headache is the need to keep everything covered. Open water attracts birds: birds and low-flying aircraft represent a mutual threat!

LOCAL AND APPROPRIATE As Arizona’s cities expand, EPCOR will continue to provide localized solutions. “When you have lots of small developments and they are not contiguous then it can make sense to have localized treatment,” says Brown. This is good news for EPCOR and its partners. It happens that both the projects we have discussed so far have been delivered by the design/construction teams of gpd treatment facility has just been completed,

Water Works Engineers and

he explains, but is not being put into service

Archer Western Contractors

until flows from the mushrooming housing

(Walsh Group), however, EPCOR

development in the area are enough to make

works with many local consultants

it efficient to start up and operate – most

and contractors.

likely early in 2019.

Eventually that facility could grow to its

Not everyone is blessed with a surface water supply. Many

master-planned capacity of 8 MGD, he

communities still rely exclusively

envisages. Close proximity to an airfield

on wells, but climate change is

comes with other challenges. Clearly the

drying the wells up so in some

height of any construction has to be limited,

areas around Phoenix people

however that’s not too much of a burden for a

have come to rely some or all of w w w. b u s i n e s s c h i e f. c o m

129

EPCOR USA INC. / EPCOR UTILITIES INC.

“When you have lots of small developments and they are not contiguous then it makes sense to have localized treatment” — Andrew Brown, Engineering Director

Full Service Water & Wastewater Contractor Felix Construction Company is a general engineering contractor and construction management company with a specific focus on water production facilities, well sites, booster pump stations, water treatment facilities, wastewater treatment plants, sewage lift stations, storm se water pump stations, electrical instrumentation & controls, and custom industrial control panels. LEARN MORE.

CONTACT David Giannetto, Principal 1326 W. Industrial Dr., Coolidge, AZ 85128 623-435-4314 davidg@felixconstruction.com

www.felixconstruction.com

CONSTRUCTION

131 the time on water brought to them by

seven days a week during daylight

trucks. Around the Anthem community

hours and has two filling points that can

in the northern portion of the Greater

feed trucks at a rate of about 425

Phoenix metropolitan area this

gallons per minute. “This is a standalone

service was indirectly provided by

part of our business,” says Brown. “We

a local municipality but was withdrawn

can’t charge our existing customers, so

in 2017. EPCOR’s response was to

we make a charge to the water haulers

build a water hauling station – to the

to cover the cost of the facility.” The

great relief of these 1,500 residents

water hauling facility illustrates some

when it opened in July 2018.

highly relevant points – among them the

The Desert Hills New River Water

alarming scarcity of water resources in

Station is a location where water

Arizona, the diversity of consumers’

haulers can purchase potable water

circumstances – and the alacrity and

that meets all Federal and State

flexibility with which EPCOR looks for

drinking water standards. It’s open

appropriate solutions. w w w. b u s i n e s s c h i e f. c o m

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