Business Vision Winter 2018-2019 by Business Vision

.W O R L D Financing the Future Interconnected World

Davos 2019 Gathering of the tribes

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Winter 2018-19

Mental Health — can you talk freely at work? GBP 9.95 | EUR 14.95 | USD 15.95

Femtech — investors getting interested

• Risk — are you managing it?

• Technology — looking to the future

Thom Richard is one of the few pilots in the world to possess the talent, experience and courage required to compete in the final of the famous Reno Air Races – the world’s fastest motorsport. Less than ten champions are capable of vying with each other at speeds of almost 500 mph, flying wing to wing at the risk of their lives, just a few feet off the ground. It is for these elite aviators that Breitling develops its chronographs: sturdy, functional and ultra high-performance instruments all equipped with movements chronometer-certified by the COSC – the highest official benchmark in terms of reliability and precision. Welcome to the Breitling world.

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WELCOME TO OUR WORLD

CHRONOMAT 44 FLYING FISH

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Letter from the editor IF IT'S January, this must be Switzerland. In the words of Jim Morrison: Is everybody in? The World Economic Forum's annual meeting in Davos-Klosters, in the Swiss canton of Graubünden, is touted as the only annual gathering of global society leaders (though surely that can't be correct?). It's a mecca for the heads and members of more than 100 governments who converge on the mountain town to discuss global, regional and industry agendas. The ducks are in a row, and Klaus Schwab is once again the man keeping order with his bag of bread crusts. (That's him welcoming the pilgrims on the cover, as seen by our artist Alejandro.) There will be televised sessions and webcasts, as well as saturation coverage via social media. Davos captures more media attention than any other annual event — outside the world of sport. With more at stake than any Cup Final or Heavyweight Championship, you would expect Davos to have more spectators than it can handle. And it may well have — although they are scattered, rather than gathered. Because yes, Davos — this year addressing Globalisation 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution — is still invitation-only. Participation is reserved for members of WEF communities, who, in cooperation with the Network Of Global Future Councils, ensure solution-oriented goals. Open and inclusive or invitation-only? The summit has conflicting values: transparency and public participation / we'll call you. Public awareness of what is said, and left unsaid, in Davos will come at one remove — via international media. By rights, the BV Winter issue you are now reading, neatly bound and lovingly printed on Woodforce Gloss 115-gram paper, should be available on the snowy streets of DavosKlosters. There in print and in spirit. Invitation-only, remember? But our ears are open. And the big knobs are there, or on their way, and no political, commercial or personal interests will be allowed to conflict with the WEF's goal. World leaders and politicians will be joined by the

executives of 1,000 prominent global companies, leaders of international organisations and NGOs, prominent figures of cultural, philosophical and societal thought — and “the disruptive voices of the Forum's Young Global Leaders, Global Shapers and Technology Pioneers”. All these individuals flow together at the beginning of each year to help define and shape industrial and financial policies around the globe. The WEF is rightly proud of its status as an independent, impartial organisation for publicprivate co-operation — and it is an organisation with a clear mission. After all the i-dotting, t-crossing, amendments, arguments and uproar, the noble objective is to have Improved The State Of The World. A tall order? Not at all. Look at the state we're in. Making things worse would be the real challenge. So be it. Let's stand on something and watch. There will probably be a few winners from Davos 2019 and, brighter yet, there should be no losers. The BV team wishes all of you a happy and prosperous New Year — and please keep your letters and suggestions coming in. We rely on you to keep us abreast of what's moving in your world.

HAL WILLIAMS Editor hw@bv.world

Business Vision Winter 2018-19 Issue â&#x20AC;¢ www.bv.world

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Correspondence Electric vehicles Your tech-guru Richard Thomas brings us a variety of interesting stories in BV, and manages to render complex subjects comprehensible, as well as entertaining. Thomas seems to be focusing, in his recent features, on electricity as the power source of future transport, from planes to cars. While this is logical on his part — that certainly is the way things are going, on a global scale — and the technology is interesting, I have some reservations about the way BV is jumping without question on this “clean and green” bandwagon. Is anyone sparing a thought as to the source of the electricity? Phasing-out gas guzzlers is one thing, but if the neat, silent, spiritless vehicles of the future (sorry, I'm a petrol-head) still have to plug into the grid to recharge, shouldn't the first priority be to ensure clean electricity generation? Add to that mountainous oversight the mining operations needed to source the precious metals used in battery technology, and this starts to look a bit smoke-and-mirrors. A conspiracy theorist might be inclined to see an evil plot to take away our individual autonomy by foisting less exciting, less efficient transport on us in the form of vehicles which could be centrally controlled and speed- and power-limited. The freedom of the open road is disappearing in the name of environmental friendliness, and I'm not sure anyone is seeing the whole picture. Malcolm Godfrey Hemel Hempstead UK Richard Thomas replies: Thank you for the glowing praise Malcolm, it's great to know I'm hitting the spot. You make a very good point about the source of the electricity for all these projects. As I mentioned in the planes story in the Autumn issue, an electric vehicle is only as green as the electricity used to charge it. That's great for Norway's aim to get all its domestic air traffic electric, as 98 percent of its electricity comes from hydropower. But as you point out, if energy generation is from coal and gas, then all you are doing is moving the pollution around. Clean electricity generation is an essential part of this technological revolution. Being a petrolhead you might not appreciate this, but do have a look at my article on Formula E motor racing on page 106. Not just electric cars, but an electric atmosphere — and they are implementing a topdown approach to sustainability. RT

No offence taken

Please don't be offended, but until last week I thought I didn't like your magazine very much. My partner brings home copies from her work sometimes, and she seems to enjoy reading it — but then she works in HR for an investment bank, so no surprises there. I am more of the hippy persuasion myself (opposites attract lol), and find stories about finance, business leaders and interest rates about as interesting as Bob Katter's world view. This letter is a sort-of apology for maybe having been too quick to judge, because my view has changed a bit. I picked up a copy of BV (I think it was the Autumn one) that my partner had left lying around (OK, it was in the loo). It was open to a page about Boomtown festival — which instantly caught my attention. The reporter concentrated on the financial side of the festival, naturally enough for you guys, but the photographs were great. I started paging through and found, a few pages away, a piece about nightclub legend Peter Stringfellow (RIP). Hm, I thought: two interesting stories. Then I found a travel report / Rotary Club thing, again with nice photographs. And an item on cannabis, which came as a total surprise. So you haven't won me over just yet, but I'll at least have a flip-through in future loo visits. Justin Malloy Sydney, Australia The editor replies: Nice, thanks Justin! Winning someone around from a negative standpoint is somehow even sweeter than impressing one of those already converted. I hope you enjoy this Winter issue. HW

Heathrow & TTP I noticed an interesting juxtaposition in the Autumn issue between an ad promoting the expansion of Heathrow, justified by the amount of goods exported through it, and an article on the UK's possible entry into the TransPacific Partnership. Obviously, the closest member of that trade group to the UK is Canada, some 3,000 miles away, and so, as you mention at the end of the article, shipping firms might be the first to benefit from the arrangement — if it goes ahead. And by the placement of these two pages you are subtly pointing out that Heathrow itself could benefit. Hmm, I see now that this could be one of those “unintended consequences” that haunt so many government decisions. It will be interesting to see how this pans out and how it influences the debate over the expansion of Heathrow. Susan Atkinson, East Grinstead, West Sussex, UK

Editor Hal Williams Assistant Editor Janet Newbury Executive Editor Susan Shaw

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Pictures Editor and layout Richard Thomas

Contributors Jason Agnew Heather Leah Smith Nabil Abu El Ata Bob Craig Daniel Ryan Larry Tedesco Muthoni Kanyana Nigel Booth

Business Vision

Cover Art Alejandro Lampre Velรกzquez Distribution Manager Thomas Terrell Subscriptions Max Pragnell Commercial Director Graham Church Publisher David Eyres Business Vision The Lansdowne Building 2 Lansdowne Rd Croydon CR9 2ER United Kingdom Tel: +44 (0)203 745 7671 Fax: +44 (0)203 745 7674 Email: info@bv.world Web: www.bv.world Printed in the UK. All rights reserved.

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In this issue 16

16 | Davos 2019 18 | Litigation Finance 22 | KFIC: head of the pack

35 | World Bank climate action

26 | New technology

36 | Thai takeaway

30 | Mental health

38 | Getting it wrapped-up

32 | Women in business

40 | HR in Africa 42 | Gibraltar 44 | Glue-shoe syndrome

48 | Peru's Banco Ripley 51 | Poland climate summit 52 | Water waste warning 54 | The rise of femtech

56 | Saxo's Outrageous Predictions

68 14 14

Contents

74 | Power from waste 76 | Automation: friend or foe?

80 | IT security does not compute 81 | Apprentice acceleration 82 | Managing Africa's parks 85 | Have you got the gig?

Business Vision Summer 2018 Issue â&#x20AC;˘ www.bv.world

77 | Get digital with it

68 XX 82

88 | Europe: looking good 90 - 97 | BV Awards 98 | Does the dole do you good? 103 - 110 | BV Motoring

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Problems? We got a ton. Davos takes on Goliaths of globalisation and tech When the WEF meets in Davos, the world’s leading thinkers may be scratching their heads over some of the obstacles that need to be overcome IN THE World Economic Forum's own words, “shaping the global, regional and industry agendas at the beginning of 2019 will take place in a context of unprecedented uncertainty, fragility and controversy”. If there is the hint of a tremor in the WEF's normally calm voice, it is easy to see why. The Fourth Industrial Revolution is here, and technology is set to change to the way we live our lives. Factor-in globalisation and climate change, and the scale of the problem emerges. Progress and problems are set to engulf us, and the world's leading thinkers

‘...to build the future in a constructive, collaborative way’ will be seeking ways to deal with those challenges in January at Davos-Klosters, Switzerland, at the annual WEF meeting. The WEF, initially wavering, bolsters itself a sentence

later in its statement: “In a world preoccupied by crisis management, at a moment of transformative change, we will use the spirit of Davos to build the future in a constructive, collaborative way.” That constructive, collaborative approach has served the WEF well since its foundation by Klaus Schwab in 1971. The German-born business professor first named the organisation the European Management Forum, but changed the title to the World Economic Forum in 1987. It sought to broaden its scope to include a platform for resolving

The annual WEF meeting takes place in January at Davos-Klosters, Switzerland

Drop of Light / Shutterstock.com

international conflict. The WEF is funded by its 1,000 members, typically global companies with more than $5bn in turnover. These enterprises rank as the top companies within their sector / country. Membership is stratified by the level of engagement with forum activities Globalisation is being redefined by major transformations, the organisation notes. Global economic leadership is no longer dominated by “plurilateralism”, rather than multilateralism. The global balance of power has shifted from unipolar to multipolar. The challenge is tougher yet, thanks to threats such as climate change, and that unpredictable, unstoppable, Fourth Industrial Revolution. Governance is seen as key to the success at corporate, government and international levels, along with adaptability to adjust to new economic, political, environmental and social contexts. “We are just at the beginning of Globalisation 4.0, and are significantly underprepared for the magnitude of change

we are facing,” Schwab notes glumly on the WEF website. “We are still approaching issues of globalisation with an outdated mindset. Tinkering with our existing processes and institutions will not be enough. We need to redesign them.” The World Economic Forum's Annual Meeting brings together governments, international organizations, business, civil society, media, foremost experts and the young generation from all over the world in more than 400 working sessions. It engages over 100 governments and 1,000 companies at the highest leadership levels. GLOBAL CO-OPERATION Davos will unfold in a multi-conceptual world that the WEF notes is no longer underpinned by common values. The organisation will be trying to bridge these increasingly conflicting standpoints, and build a framework for global cooperation. Prior globalisation rounds have not been fully absorbed. Global inequality is here, In the US, the Pew Research Centre, using data from the Bureau of

Labour Statistics, found that average hourly earnings have barely increased in 40 years. The WEF argues that present structures must be reformed to deal with tech-driven advances. The benefits of globalisation are not universally accepted. The neutral platform it provides to find common ground is invaluable, but the forum runs the risk of distancing itself from the people whose concerns will set the global agenda. Two of the more interesting of questions facing the WEF are how to sell the Fourth Industrial Revolution to a mistrustful audience, and how to harness ultra-tech to further liberal values. At the base of all discussions is the necessity to meet basic human needs. Inflexible societal systems that fail to take human diversity into account risk breaking down or turning citizens into automatons, some observers have noted. Big data has many benevolent applications, which must be explored and promoted. Davos has, as always, a massive task ahead of it. Collaborative, co-operative — and creative — efforts will be needed.

Business Vision Winter 2018-19 Issue • www.bv.world

Davos will unfold in a multi-conceptual world that is no longer underpinned by common values

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Myth-busting litigation finance: what today's law departments need to know Does using litigation funding encourage frivolous litigation, or does it level the playing field? The answer: It depends – as experts BOB CRAIG, DANIEL RYAN, and LARRY TEDESCO explain (in simple terms). IF YOU'RE working in the corporate legal space, you've probably encountered litigation funding. Many in-house teams have seen cases against them funded by third parties, most legal departments still aren't using it, and many executives still aren't sure what to make of it. Does it change the way inhouse counsel think about legal strategy, or does it help them convert legal claims into valuegenerating assets? It depends

on who you ask, on the form of litigation funding, and on the facts of the matter. “Corporations don't need litigation finance” – true or false? It might have been true 20 years ago, but a recent Thomson Reuters survey shows that controlling outside counsel costs has become a general counsel's top priority. Many GCs are tasked with turning their legal departments into value-generation engines – and litigation funding can be a powerful means to extract revenue

from legal claims while holding down outside-counsel costs. Funding can also provide independent validation, enabling the GC to file a claim that could bring a big payoff, but would be expensive to litigate and requires buy-in from other executives. Senior executives don't always grasp the risks and rewards in those scenarios, and they may want assurances of success that the GC can't provide. Obtaining funding suggests that an outside expert has

Many General Counsels are tasked with turning their legal departments into value-generation engines

positively assessed the claim and potential damages, which may help persuade other key decision makers. Litigation finance can generate more lawsuits by allowing companies to file claims where they might not otherwise have been able to, but those cases are not always frivolous. Because funders shoulder significant levels of risk, they don't invest in cases unless due diligence shows that the claims have merit. If anything, litigation funding leads to more high-quality litigation. It also propagates litigation by resolving an issue bedevilling many law firms: the pressure to accept more contingency arrangements. Corporate clients increasingly want their outside firms to share the risk of lawsuits, but law firm balance sheets can only handle so much of that risk. Litigation funding spreads some of the risk to a third party, allowing law firms to revert to a fee arrangement that provides a regular income.

The cost of capital for litigation funding appears steep - if you don't consider the risk to the funders. Most funding comes in the form of non-recourse financing. The funder, and often the law firm, takes a large cut from

Litigation funding spreads some of the risk to a third party potential proceeds in exchange for covering funded costs. If you lose, you owe the funder nothing. Plenty of general counsel still prefer to finance their strongest claims themselves, rather than give up a portion of the proceeds. But there are situations when it

makes more sense to defer the costs of litigation and shift some of the risk, even with claims that have obvious merit. There are more compelling reasons to use litigation finance. Under the traditional “hourly rate format” – where the law department chooses an external law firm – GCs have to spend hours quibbling over budgets during the litigation process. Securing litigation funding typically reduces many of those burdens, allowing in-house teams to focus on collaborating with its law firm on legal strategies and tactics. Because the firm isn't financing the case itself, the external legal team is less likely to cut corners or push for premature settlements. Funding typically isn't unlimited, so costs must still be managed, but adding a financing partner helps shift the balance back toward lawyering. Litigation funders bring a significant level of discipline and professionalism to damage assessment, because their business

Business Vision Winter 2018-19 Issue • www.bv.world

Adding a financing partner helps shift the balance back toward lawyering

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Litigation funding is a tool that can relieve potential tension between General Counsels and CFOs

depends on it. In this regard, litigation funding is analogous to the broader movement to outsource non-core corporate functions to specialised vendors for efficiency and agility. Using a litigation funder also adds an element of independent scrutiny, lowering the risk of being led into expensive (and inadvisable) legal battles by overzealous managers or law firms. Under generally accepted accounting principles, litigation costs must be recorded as operating expenses, charged to selling, general and administrative (SG&A) costs. But proceeds from a successful outcome are usually treated as other income, not from operations. As such, litigation can reduce a company's cash balance, operating income and earnings in the short term. Litigation finance can dull, or even nullify, the short-term financial hit. If the litigation funder covers most of the litigation costs, the company's financial statements are unaffected. Resulting proceeds, while reduced

by the funder's payout, amount to a bottom-line windfall. Litigation funding provides an innovative tool that can

More funders also means more funding activity help relieve potential tension between GCs and CFOs. It allows the legal department to pursue a meritorious claim without drawing resources away from the core business. While the legal world still shows apprehension about litigation finance, investors are rushing in with abandon. Not just for the novelty, but also because it's uncorrelated to other asset classes

â&#x20AC;&#x201C; and often outperforms them. Even within a single funder's portfolio, cases are uncorrelated â&#x20AC;&#x201C; an enticing attribute for investors. The demand is giving rise to more funding firms, which promises to create greater competition for meritorious claims, and more attractive pricing for the claimants. More funders also means more funding activity. In just five years, the share of law firms using litigation finance has risen from seven percent to 36, according to a 2017 survey by Burford Capital. That pace can't continue forever, but there's still plenty of room to grow â&#x20AC;&#x201C; and plenty of reasons for in-house counsel to give litigation funding a close look.

Bob Craig, Daniel Ryan and Larry Tedesco are directors of Berkeley Research Group www.thinkbrg.com

Angela Merkel

ANGELA Merkel has announced she will step down from her position of Chancellor of Germany in 2021. Merkel grew up in East Germany in Iron Curtain days, and has taken her now-united country to greater strengths. But she has never been universally popular, thanks to her staunch positions on touchy subjects such as Greek debt, refugees, and the environment. Merkel is recognised as one of Europe's most enduring and influential leaders, holding her position as chancellor since 2005, and leader of the centre-right Christian Democratic Union (CDU) from 2000. She has earned respect for her stable and pragmatic approach to World politics — as well as vilification from her political opponents. The German chancellor is a private person, and one who holds few cows sacred. When Helmut Kohl became entangled in a funding scandal, Merkel was quick to jettison him, in political terms, creating a lasting rift between herself and the Kohl family. She contributed to the end of Kohl's chancellorship — and set her own sights on the top job. As chancellor, she has shown a restrained and sometimes inscrutable face, but usually one on the side of reason. In the face of dire news (Brexit and Donald Trump's election, for instance) Merkel set out on a mission for stability and co-operation. Again, she sought distance from decision-makers over unpalatable issues, warning that Europe could not rely on “old alliances”. Merkel is expected to take a hand in shaping a post-Brexit EU (watch this space), and has been instrumental in brokering discussions on the Russia-Ukraine disputes. Her time at the helm will be remembered for the bold steps she took to ameliorate the refugee crisis — and for its sheer longevity.

Business Vision Winter 2018-19 Issue • www.bv.world

PEOPLE

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Admirable driving forces put KFIC at head of pack KFIC was established in early 2000s as a Kuwaiti Shareholding Company, primarily operating in the financial services sector. The company's driving forces are its shareholders, management team and employees — who believe in the future of KFIC and who strive continuously to succeed in a challenging and evolving business environment. “I believe that they see us a force that will bring change, exhibit core value and corporate responsibility in our approach,” said CEO Tareq Mishari Al Bahar. KFIC has established itself as a premier financial and investment institution in a world still struggling after the 2008 economic meltdown. This has been achieved through its robust business approach and strategy, including an effective restructuring plan that paved way for its success. “We have been able to taste the glory, because of the immense strength our team — and of course the continuous

Alignment to applicable regulatory requirements support of our shareholders, who believed in the KFIC's future and potential.” KFIC's main operations are run from the head office in Al Arabia Tower in Kuwait City, with two branches in Al Rai Industrial Area and Qureen (west of the Abu Fatira Area). When it comes to a business vision, Al Bahar says the main aim is to ensure business conduct with the highest level of professionalism and ethical practices. “We work within a corporate governance framework, aligning all our activities to applicable regulatory requirements including corporate governance standards, best

practices, internal policies, systems and controls.” The expectations of customers around the world is constantly changing, and those customers seek a company which understands changes in their needs, and in market behaviour. KFIC provides relevant solutions and investment advice. “It is crucial that such services are provided with utmost care, transparency without obstructing any ethical barriers,” Al Bahar says. “Our mission is to play a crucial role in the provision of financing solutions and investment services in Kuwait and the GCC Countries, to meet the exponential need of its growing customers.” Experience in the field and in overcoming the hurdles of the economic crisis has helped KFIC to stay ahead. “I can certainly say that we have the knowledge and know-how that helps us think outside the box for solutions, and diversify and widen the horizon of our services to meet our

‘For KFIC, hiring people who wish to positively contribute to the society is key’

Tareq Mishari Al Bahar, vice-chairman and CEO of Kuwait Finance and Investment Company, KFIC an official corporate governance structure with voluntary compliance. That is a reflection of the company's value system and encompasses its culture, policies, and relationships with stakeholders, says Al Bahar. “Integrity and transparency are key to our corporate governance practices and performance, and ensure that we serve and protect the interests of our stakeholders.” KFIC operates in the financial sector, with the focus on providing end-to-end financial solutions, including investment management and advisory services that meet customer needs by leveraging local and international experience — as well as through its efficient team and strong network. KFIC's services fall under four key segments: Financing — consumer and commercial loans in Kuwait and other GCC countries in compliance with Sharia principles Asset management —

• •

portfolio management and custody services for clients, as well as management of mutual funds Investment and Corporate Finance — investment management, alternative investment and advisory services Financial Brokerage and online trading for instruments, including equities, FX, and derivatives. Mutadawil.com is KFIC's leading trading service. It represents a one-stop-shop for investors and traders. For 10 consecutive years, Mutadawil has been building electronic access trading technology that delivers advantages to traders, investors and institutions in the MENA region. KFIC has a licence to provide financial lending services, and to act as an investment company. “This has granted us an opportunity to widen our service horizon that can benefit our

• •

Business Vision Winter 2018-19 Issue • www.bv.world

customers' expectations.” The company vision focuses on building sustainable business practice, which incorporates good governance and factors that challenge the socio-economic environment. “We strongly believe this aspect adds value to our stakeholders, and to ourselves as a ‘responsible entity'. That's why we have incorporated them within our policies including HR policies and product development.” That includes the funding of the SME sector, as well as across KFIC operations, through customer relations, the use of recyclable materials, energy saving and waste reduction. Corporate governance practices are an integral part of business activities. KFIC's board of directors has set a conservative policy that was transformed into a governance system prior to the issuance of related laws and legislation. The executive management implemented this policy with great efficiency, turning KFIC into one of the few Kuwaiti companies to develop

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clientele, a key strength for KFIC.” The company is committed to achieving sustainable development for society and the economy in general, as well as for its employees. It has a policy of social responsibility to ensure contribution to the achievement of sustainable economic and social development. Hiring people who wish to positively contribute to the society is key, says Al Bahar. One of KFIC's aims is to have a core “Green Team” to encourage employees to contribute to, and implement, sustainability initiatives. Initiatives include recycling and engaging in volunteer programmes. Some of these ideas come from employees. The company's Green Building Initiative is geared to provide sustainable, resourceefficient buildings, concepts becoming popular in the GCC. “We are looking to move into one such building, which will open in the near future,” said Al Bahar. The green building saves energy by introducing open spaces that reduce the use of lights. Training and induction programmes emphasise the importance of saving energy. The goal is to be completely a paperless office environment. “It's challenging of course, as we do have old-school clients who may need paper documents. To reduce the impact, we have been using a ‘Document Management Software' that has significantly reduced internal use of paper.”

KFIC also runs an annual recycling programme and uses multifunction printers that decreases its carbon footprint by using less energy, fewer supplies and office space. The company is in the aggregate industry for road construction; the company researched and fitted suitable air filters to reduce air pollution. One of the biggest challenges KFIC faced was during the economic crisis in 2008. “We became the first company that offered debt-to-equity swap. This was possible thanks to the support of our lenders and shareholders, and the core skill and experience of our management team.” NEW PLAYERS The market is growing, and Kuwait has its vision set for 2030: encouraging new players in the market, local or international. Opening Kuwait's business environment is great for the economy and will be a challenging encounter. “The change in market dynamics is foreseeable and will be one of our greatest challenges,” the CEO says. “We are prepared to be ahead of the game and so constantly revisit our strategies to adapt and respond to any changes in the market dynamics. By doing so we pave way for healthy competition and encourage innovative solutions.” People are a cornerstone of KFIC's success. “We encourage our team to bring their innovation to the table. This has provided

them with a forum to speak for change. Our members of the board are constantly looking out for new changes.” Profit-making is a goal, but only one of KFIC's ambitions. “We aim to make our investments in places that matter, giving a sense of responsibility, shared by our investors too. We receive several investment opportunities daily, apart from our criteria related to financial matters, we assess the nature of the investments and its impacts to the economy/ environment, directly or indirectly.” KFIC intends to create a fund to encourage budding entrepreneurs and innovators, an initiative that has a direct correlation to the welfare of society, and one that would positively impact economic growth. There are high risks inherent in such investments, but “that is the risk we are willing to take,” says Al Bahar. “Our success is a trophy that wouldn't have been possible without KFIC's board, shareholders and employees.” KFIC embraces SDG goals proposed in the UN's 2030 agenda, such as impact of investments, gender equality, support for economic growth, clean energy and climate action. “Small changes can make a big difference. We can't resolve all the problems, but we can at least focus on what we can eliminate in small fractions. This is what everyone should aim at.”

Kuwait has its vision set for 2030: encouraging new players in the market, local or international

Expansion in Africa

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The future may not be here, but it's coming at you — fast! BV’s RICHARD THOMAS gazes into his (liquid) crystal ball and shares visions of coming technology, from fusion power to, well, flying cars… FUSION power is, according to the experts, 30 years away. It has always been 30 years away. It was 30 years away 30 years ago, when I was studying for my physics A-level. Most experts agree the magic 30 figure still stands — although a couple of start-ups are hoping to unveil something of practical and commercial interest sooner than that. More on those developments later, but while we're waiting for fusion, let's have a look at some other long-promised technologies… DRIVERLESS CARS The development of autonomous cars has gone hand-

The early gains have gone to Tesla, Google and Apple in-hand with that of electric vehicles. The early gains and publicity have gone to the likes of Tesla, Google and Apple, but the tech giants have now been joined by VW, BMW, Ford, Mercedes and Volvo. Just about every major car manufacturer has some skin in

the game, and the technology is racing ahead of legislation. A few highly publicised accidents during trials may delay the introduction of driverless cars on public roads, but testing continues. Uber had its own self-driving car scheme under development (suspended after a fatal crash in March 2018), and in August it announced a $500m investment from Toyota for a future joint-development programme. ELECTRIC PLANES An article like this wouldn't be complete without a mention of electric aircraft. First, conventional electric planes. “Conventional” in this case means

Grendelkhan / Wikimedia Commons

Google’s car division, now rebranded Waymo, has won approval for testing on public roads in the US

that power stored in batteries is used to turn a propeller. BV covered this fast-moving area in the Autumn edition, and if the Norwegian aviation authority, Bye Aerospace, easyJet and Wright Electric have anything to do with it, big news will be rolling in over the next 10 years. NO MOVING PARTS A scale-model of such a plane has been developed by MIT scientists, who recently published their results in the scientific journal Nature. The aircraft has no moving parts, flying courtesy of “ionic wind”. An array of highvoltage (20,000-volt) electrodes at the front of aerofoils ionise nitrogen molecules in the air, which are attracted from the positive to the negative electrodes (at the rear). On their way, said charged molecules collide with their uncharged counterparts, creating “wind” — which travels over the aerofoils, creating lift and thrust. Their prototype resembles a model plane being launched from a ramp, but has covered more than

60 metres under its own steam. The general concept is proven, and the race is on to develop something more practical. BATTERY TECH The range of electric cars and duration of planes is limited by the energy density of their batteries and the speed at which those batteries can be recharged. During charging, lithium ions inside a battery move from the positively charged electrode, or anode, towards the negatively charged cathode. The charging time is limited by the speed the ions can move, and on the material the battery is made of. Cambridge University researchers have discovered that a group of materials, niobium tungsten oxides, greatly increase the speed of ions, and thus the speed of charging. Any improvement in battery technology is good news, not just for electric cars and planes but also for grid power storage, for solar energy. MAGLEV TRAINS While we're on the subject of

transport, don't forget maglev. In case you have forgotten, maglev is an abbreviation of magnetic levitation, a system that uses magnets to suspend a train above the track, and to propel it forwards. The first maglev patent was granted in 1905, but it wasn't until 1979 that the first working train to use the system was opened to the public in Hamburg. However, this train was built for a transport exhibition, and only operated for a few months. Further test systems were built in the-then USSR, and the World's first commercial maglev system linked the UK's Birmingham Airport with a railway station. A railway station which was just 600m away. From its inauguration, in 1984, it was very popular with passengers; prohibitive maintenance costs led to its closure in 1995. Still in the UK, a maglev train system was proposed in the early 2000s to link London and Scotland via Birmingham, Manchester, Leeds and Newcastle. The proposal was rejected in

Business Vision Winter 2018-19 Issue • www.bv.world

The Shanghai maglev system — currently the fastest electric train in the world

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Facial recognition technology can now scan a crowd for known threats

2007, in favour of a conventional high-speed rail line, the HS2. The German company that was behind the proposal rejected by the UK provided trains for the Shanghai maglev system — currently the fastest electric train in the world. A new, eight-kilometre maglev system has been opened in Beijing, and other Chinese cities have similar projects under consideration. In Japan, a maglev system is being constructed between Tokyo and Osaka. It is expected to reach speeds of 500 km/h, shortening a journey that takes four hours by bullet train to just 40 minutes. Elsewhere in Asia, maglev systems have been proposed in Bangalore, Hong Kong and Taipei; South Korea's network has been in operation since 1993. In the US, various intercity projects have been proposed — but some have already been abandoned. Still under development is Elon Musk's Hyperloop, a maglev train system in a vacuum tube.

FACIAL RECOGNITION Facial recognition is moving from film fantasy to real life, courtesy of US firm Facefirst, whose technology is aimed at law enforcement, casinos, retail and transport. The technology can scan a crowd for known threats (terrorists or shoplifters, pick your enemy) and can be used for access to buildings, events or vehicles. Facefirst claims to have 451 global deployments across all sectors, including law enforcement, retail and military. BIONIC LIMBS Remember The Six Million Dollar Man? At the time, the opening sequence went: “We have the technology: we can rebuild him.” Now there are companies developing hands that grip, and legs that run. The i-digits bionic hand from Touch Bionics can be controlled by simple gestures, or via a mobile phone app, and make fine muscle movements such as operating a camera. The company describes its device as appropriate for partial hand-loss, but the technology

exists to replace all five digits. QUANTUM COMPUTING The idea was first proposed at a Physics Of Computation conference in 1981, but the practical implementation of quantum computing is still lagging. In a nutshell, the physics of quantum mechanics will allow this new generation of computers to work faster with more data. A working model will be faster than classical supercomputers. Much faster. Why do we need quantum computers? For solving complex mathematical problems, modelling the structure and behaviour of molecules in chemical reactions, improving artificial intelligence and modelling financial markets. Finding prime factors of an integer could break cryptography as we know it now, but quantum computers could also create new cryptographic methods that don't rely on factorisation. Modelling of chemical reactions could lead to new molecules designed for medical

car that flies, this is a plane that can be driven: it requires a sportspilot licence to fly from airport to airport, but then it can be driven out of the gate and on to the final destination by road. The planned follow-up to the Transition is the TF-X. This is planned to be more like the flying car promised by 1960s animated series The Jetsons. It won't need to take off or land at an airport, so owners will be able to fly doorto-door. With the number of drivers who seem to have trouble with left, right, forwards and backwards, adding up and down may cause problems. NUCLEAR FUSION Ah, back to fusion. The idea of nuclear fusion as a source of energy has been in the “promising-butmore-research-needed” category of technology for many years now. Well, 30, at least. But maybe that could change soon. The UK's Tokomak Energy has been developing its own compact fusion system, designed for use in factories, and aims to

supply energy to the grid by 2030. Canada's General Fusion is even more ambitious. Its technological solution for dealing with the huge temperatures and pressures required for fusion is said to be promising, with the company hoping for a demonstration model on a commercial scale within five years. The Canadian government is evidently convinced, having granted the company C$50m from its Strategic Innovation Fund.

NEXT BIG THING Have we missed anything? Maybe you work on a project that could be the basis for a future article, or perhaps you run a business developing the next giant leap for mankind. If it isn't veiled in secrecy, BV would love to hear form you. Just send an email to info@ bv.world …

Business Vision Winter 2018-19 Issue • www.bv.world

use, and improve the Haber-Bosch process used for the production of ammonia (a fertiliser for crops, if you were wondering). The first experimental versions of the quantum computer have been connected to the internet, and toolkits released to allow the public to write simple programmes for them. Working prototypes are still years away, but as MIT professor Isaac Chuang said, “It is no longer a physicist's dream — it is an engineer's nightmare.” FLYING CARS One of the staples of 1950s science fiction was the flying car. Most early predictions for the year 2000 suggested we would be doing our daily commute in three dimensions, rather than two. But 2000 came and went with no sign of the flying car; approaching 2020, and we might be closer. US company Moller has been teasing the world with its Skycar for most of this century, but now the Transition, made by Terrafugia, has gone on sale in the States. Rather than being a

Quantum computing is no longer a physicist’s dream — it is an engineer’s nightmare

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Mental health remains a taboo topic for workers WORKERS on lower salaries feel less comfortable talking to their employer about mental health. In a report entitled Why BWell, from Barnett Waddingham, a research project surveying 3,000 British employees found that of those earning £20,000 - £30,000 a year (the average UK salary), just two in five would be willing to discuss mental health at work. That figure rises to 50 percent among workers earning £50,000 £60,000 a year — and 67 percent for those on £70,000 - £75,000. A lack of trust and training could be a barrier. Just one in four feel that their managers are equipped to support employees with mental health issues. When the same question was put to employers, 74 percent felt line managers were adequately equipped for such conversations. The findings reveal a worrying

‘Presenteeism’ is when employees go to work when not well gap in perception between business leaders and their staff. Another explanation for employees on lower salaries not wanting to talk about mental health is that they feel their company isn't interested in them as individuals. One in five workers on £20,000 - £30,0000 said that their employer shows no interest in them as a person, but this drops to 14 percent for those on £40,000

- £50,000, and one in ten for people earning £70,000 - £75,000. A major cause of mental health problems in the workplace is stress. Across all salary brackets, more than a third of people struggle to deal with workplace pressure. The same proportion of workers don't feel able to switch off outside of work hours. Both factors may be leading to a rise in “presenteeism” — when employees go in to work when not well. A recent CIPD report indicated that presenteeism had tripled in the past eight years, while Barnett Waddingham's study found that almost half of the UK's workforce feels under pressure to go to work when feeling unwell. Laura Matthews, workplace wellbeing consultant at Barnett Waddingham, said that while some employers are taking a lead

A major cause of mental health problems is stress, experts say

Across all salary brackets, more than a third of people struggle to deal with workplace pressure on mental health, it remains a taboo subject for employees. Especially those on lower salaries, who are most vulnerable if they lose their income. “This isn't good enough, if businesses are serious about supporting their workforce,” Matthews said. It's been estimated that mental health problems at work cost the

UK economy £35billion last year, “so it's in everyone's interest that companies create an environment where problems can be discussed openly and honestly”. While some businesses offer gym memberships to encourage a physically healthy workforce, there is less emphasis on improving mental health.

“Line managers and senior management have a huge part to play when it comes to addressing this, and it's crucial that they receive the right training, adopt effective management styles and make conscious efforts to communicate with employees on a personal level and keep morale high.”

This information comes from www.mentalhealth.org.uk THE latest large-scale survey in Britain suggests that one in six people experience symptoms of a mental health problem in any given week. Different mental health problems affect people in different ways, and it's key to understand an individual's experience. Some people with schizophrenia, for example, live pretty much ordinary lives, while others with anxiety may be severely affected by their condition. As a rule, you should seek help from your GP if you have difficult feelings that are: stopping you from getting on with life having a big impact on the people you live or work with affecting your mood over several weeks causing you to have thoughts of suicide. At work, you might notice that you are more tired than usual, make uncharacteristic mistakes, find it hard to motivate yourself. Your timekeeping might slip, or you may become short-tempered. More obvious signs are outbursts of anger or emotion, and absences from work A range of legal rights protects your mental health at work. An affected person is entitled to ask for reasonable adjustments to their job or workplace to accommodate their disability. This could entail a change in work patterns, working remotely on set days, and an excuse for not attending some work functions.

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Business Vision Winter 2018-19 Issue • www.bv.world

GUIDANCE FOR MENTAL HEALTH IN THE WORKPLACE

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Woman-power makes sense, according to FSB's study

FEMALE-OWNED businesses contribute a £105bn to the UK economy, contributing 6.3 percent of the UK GVA (the increase in the value of the economy due to the production of goods and services). Despite this, Britain's female entrepreneurs remain a rare and elusive species, a new study shows. The Federation of Small Businesses (FSB) is a non-profit business-support group for the UK's small businesses and selfemployed workers. Research by the organisation shows a 40 percent increase in UK economic contribution, and a 26 percent increase in employment, generated by businesses headed by women. The study also shows that a quarter of private sector employment is generated by female-owned and -led businesses – but the manufacturing and higher growth sectors remain a challenge for women entrepreneurs. The report findings show that

there has been a reduction in the female-led contribution of the manufacturing sector, which is a high-profit sector. A larger proportion of women-owned businesses are in the care sector, which shows lower profits. The estimates show that Wales (7.24 percent of GVA) and Northern Ireland (9.23 percent of GVA) lead the way in the contribution from female-owned businesses. The report was launched at a Facebook's Community Boost event late last year at London's Millbank Tower. Facebook spokesperson Nicola Mendelsohn said the report shone an encouraging light on the increased contribution of womenowned or -led businesses to the UK economy, and to employment. “But it's unacceptable that our culture is still hard-wired against women in leadership roles,” she said. “We need more women starting and growing businesses, and more women sitting at the

table, whether it's pitching new business ideas or developing new products. Reports (like this) show how far we have to go to reach true equality among the small business community.” Lina Bourdon, head of FSB's Women in Enterprise team, said development of women's enterprise was critically important for economic prosperity. “The Government must now address this untapped potential with a range of suitable measures, such as career advice, role models, and access to business support and finance,” she said. Carolyn Currie, CEO of Women's Enterprise Scotland, which compiled the report for FSB, said the female-led momentum must continue. “With dedicated resources and support, women-owned businesses have the opportunity to harness the momentum already created, and continue to grow their economic impact and value across all areas of the UK and all sectors.”

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Cheikh Amadou Bamba

PEOPLE

ONLY one photograph of Senegalese Sufi Cheikh Amadou Bamba is known to survive, and though he died in 1927 the holy man's image, and his legacy of entrepreneurial grit, can still be seen across Africa and on the streets of America and southern Europe. Amadou Bamba, born in Baol, Senegal, in 1853, led a peaceful struggle against French colonialism. The French government sentenced him to exile in Gabon, and later Mauritania. He was liberated in 1910, and in 1918 he was granted the French Legion of Honour for enlisting his followers in World War I. The famous Sufi founded the Mouride Brotherhood in 1883, a group which has the sanctity of work as one of its core beliefs and has won the respect of world figures including Ibrahima Fall, the African Union's Special Representative for the Great Lakes Region and Head of the AU Liaison Office in Burundi. Bamba championed an industrious, entrepreneurial branch of Sufi Islam, and many of his modern followers ply their wares in the resorts in France, Italy and Spain, selling sunglasses, souvenirs and handbags to tourists and holidaymakers. Impoverished migrants from Senegal go abroad to seek work and send money home to their families. Bamba's guidance to his followers on the benefits of honest labour led many of the Senegalese diaspora to join the ambulant workforce of salesmen. He urged his followers to get ahead in life, work hard, and help one another. The poet and mystic was renowned for his emphasis on hard work — and his modern disciples have earned respect in their adoptive homes for their industrious nature, courtesy and honesty. Mouridism preaches self-help, and the responsibility to look after others. One of Bamba's best-known followers, musician Youssou N'Dour, once told the BBC that Mouridism consisted of “two paths – one is the way to God, the other path is the doctrine of work and dignity, because if you don't work, you hold your hand out and lose your dignity”. While this inclusion in BV may not have a direct link to the cutting edge of business it is perhaps timely — in an increasingly xenophobic Europe struggling under the weight of uninvited, but desperate, migrants from Africa — to reflect on a growing movement with a visible presence that shares an inspirational call to industry.

World Bank boosts financial aid for countries pitching in to fight climate change battle THE World Bank Group has announced a new set of climate targets for 2021-2025, doubling its current five-year investments to $200 billion in support of countries taking ambitious action. The plan boosts support for adaptation, recognising climate change's mounting impacts on lives and livelihoods. “Climate change is an existential threat to the world's poorest and most vulnerable,” said group president Jim Yong Kim. “We are pushing ourselves to do more and to go faster on climate change, and we call on the global community to do the same. “This is about putting countries and communities in charge of building a safer, more climate-resilient future.” About $100 billion of the new

Kristalina Georgieva

The new targets build on the 2016 Climate Change Action Plan total comes in direct finance from the World Bank (IBRD/IDA), the rest from combined direct finance from the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and private capital mobilised by the World Bank Group. A key priority will be increased support and recognition for millions of people facing the consequences of extreme weather events. By ramping-up direct adaptation finance to reach around $50 billion over FY21-25, the bank will – for the first time – give this an emphasis to equal emissions-reduction investments. World Bank CEO Kristalina Georgieva said the funding would be used to build better-adapted homes, schools and infrastructure, and invest in “climate-smart” agriculture, water management and social safety nets. Adaptation will be undertaken systematically, with a new rating system to track and incentivise global progress. Actions will include supporting higher-quality

forecasts, early warning systems and climate information services to better prepare 250 million people in 30 developing countries for climate risks. “There are literally trillions of dollars of opportunities for the private sector to invest in projects that will help save the planet,” said IFC CEO Philippe Le Houérou. “Our job is to go out and proactively find those opportunities.” The new targets build on the bank's 2016 Climate Change Action Plan. In 2018, the World Bank Group provided $20.5 billion in finance for climate action, meeting its 2020 target two years ahead of schedule. Key sectors will include energy improvement, assistance for 100 cities to achieve lowcarbon emissions, resilient urban planning and transit-oriented development. Food and integrated landscape management covering up to 120 million hectares of forests in 50 countries.

Philippe Le Houérou

Business Vision Winter 2018-19 Issue • www.bv.world

Ambitious plan includes better-adapted homes, schools and infrastructure, plus investment in “climate-smart” agriculture and water management

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Thai takeaway... to India? It's more feasible than it sounds, — and bringing tasty rewards India is famous for its own cuisine, but lateral thinking has worked out for this entrepreneur. JASON AGNEW reports.

RADHIKA Khanna's journey to becoming the leading Thai food entrepreneur in South India has called for grit and tenacity. After leaving school in Delhi, Khanna had ambitions beyond simply getting married and becoming a housewife (as was the norm for a young Indian woman in the 90s). She managed to persuade her parents to send her to Austria to study hotel management – on condition that the course lasted only a year. That year proved to be an eye-opening experience, and the catalyst for her future career. “Not only did it give me exposure to the hospitality business in another country and

the ability to speak a foreign language,” she says, “it also encouraged me to think outside the box and have the conviction to carry things through.” She returned to India feeling “very independent and empowered” and was determined to further her career, deferring marriage to her fiancé, Vikram, for another two years. After working for the prestigious Taj Group, selling accommodation and banquet facilities, she found an altogether more hands-on position in the kitchens of the Cidade de Goa. There she was exposed to the hectic atmosphere of a busy hotel kitchen during high season – and

Vikram Khanna

Radhika Khanna

There was a gap in the market: there were no Thai restaurants in New Delhi

Almazoff / Shutterstock.com

a very unpleasant experience of sexual harassment. That nasty incident was a real eye-opener, but only served to strengthen her resolve to start her own business and keep it running. After marriage, Khanna's in-laws were supportive of her business plans, coming from an entrepreneurial background themselves. Radhika had developed a liking for Thai food in Austria, and realised that there was a gap in the Indian restaurant market: there were no Thai eateries in New Delhi. She found suitable premises in the trendy Hauz Khas district, then flew to Thailand, hired a chef, purchased over 400 kilos of foodstuffs – and opened her restaurant, Sukhotai. It didn´t take long for Sukhotai to get a rave review, and then it really took off, with punters queueing on the stairwell to be seated. Pretty soon, the restaurant had become so successful that

her husband joined her in the business. After seven profitable and enjoyable years, Radhika Khanna became a mother and, as Vikram wanted to relocate to Mumbai for work, they decided to shut the restaurant.

She missed the excitement of running a restaurant But the entrepreneurial flame burned on, and after the 2008 crash, Khanna decided to launch a Thai catering business. She missed the excitement of running a restaurant, though – and opened Lotus Blossom in Goa during the tourist season. As she puts it, “my catering business is our bread and butter, and this is the jam on top”. She

finds Mumbai an amazing city to work in. “I started my business close to 10 years ago – very late for me, at age 40 – but around the time, a lot of young people started their businesses. They have remained my vendors, and now are even friends. “Apart from the business transactions with vendors, I have become friends with hundreds of Mumbai ladies, who order food from me, and tell me about their woes, kids, holidays. “So it´s been a wonderful 10 years establishing this business of Thai food in India.” Khanna believes she has made some inroads into bringing international cuisine to India. Her next plan is to franchise her business, first in Mumbai and then other Indian cities. Reflecting on her struggles as a woman breaking a cultural mould, Khanna says: “People think differently now, and I can see that in my daughter. I think it's an exciting time to be a businesswoman.”

Business Vision Winter 2018-19 Issue • www.bv.world

Khanna found suitable premises in the trendy Hauz Khas district, flew to Thailand and hired a chef

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Da wrapper's in da house! One company's drive to revive product packaging

PRODUCT packaging, if it's done well, should attract attention and “speak” to the consumer. This is something that Containers Printers CEO Amy Chung understands only too well as a basic principle of marketing. Her Singapore-based company looks to technology to provide more product control for clients, and value-added gains for shareholders. Chung has been leading the product packaging company since 2014, and she has a clear vision for its direction. “I want to drive the company from what can be considered a conventional industry to something more technological,” she said. “We are therefore upgrading our capabilities beyond conventional packaging solutions to be able to do functional printing and smart packaging.” The modern manufacturing machines lining the company

Chung intends to extend the company’s digital capabilities shop floors produce eye-catching results. Packaging comes in two materials (metal and flexible laminates), both of which can be customised with unique textured effects. Containers Printers is in the process of further digitising its operations. Chung intends to extend the company's digital capabilities into the clients'

space by offering cloud-powered product traceability and authentication services. The company is a leader in Singapore's digital transformation initiative, and has been nationally recognised for its approach to innovation and technological advances. The company's global reach — and potential to upscale — attracted the attention of Singapore's Economic Development Board, which tapped Containers Printers to participate in a programme matching top global brands with local companies to forge profitable and productive partnerships. “This year we have been selected by our Economic Development Board for a special programme,” said Chung, “where they tie us to global multinationals to gear us up in our capabilities, and to meet the strict requirements of these global multinationals. We were able to

“I jumped immediately into the Prime Minister's programme, which the government has been actively promoting in Singapore,” said Chung, whose company has been classified in the space of small to medium enterprises (SMEs).

A corporate philosophy in which everyone starts thinking about sustainability The programme aims to drive the industrial adoption of digital transformation strategies. Containers Printers was invited to participate in the programme for its proactive and innovative implementation of the latest

tech advancements. Highlights for Chung included the programme's lean-manufacturing training courses, which detail tech-enhanced manufacturing processes to improve efficiency and reduce redundancies. According to Chung, the company's operations are aligned to the “Three Rs” principle (Reduce, Reuse, and Recycle), and sustainability is built into its corporate culture. Containers Printers sources and selects benign materials and employs solventfree manufacturing processes where possible. The company's latest sustainability initiatives will be operable by early 2019, when its two manufacturing plants will be topped with solar panels. “I think that's really working towards a corporate philosophy where everyone starts thinking about sustainability,” said Chung. “We cannot enforce and impose, but we can build up a corporate culture and values, so that slowly everyone practices the three Rs as though it's just something that they do — it's natural.”

Business Vision Winter 2018-19 Issue • www.bv.world

perform to their satisfaction, so with this programme we are now being selected and shown to the Minister for the trading industry in Singapore.” Chung is proud of Containers Printers' selection for the programme, in which it took its first foray into the medical industry. The process was demanding, with tight deadlines and stiff benchmarks to meet, but it was a success. Chung and her company were praised for their performance. “We took the challenge and rolled the dice,” Chung said. “We were told that we were the most successful partnership that came out of this.” The company's success garnered more local attention, and Containers Printers was selected to participate in a skillsets development programme, overseen by the Singapore Ministry of Manpower. Containers Printers will be showcased in a session with the country's Prime Minister, Lee Hsien Loong, who will visit the company to meet the team.

The company’s packaging comes in two materials, metal and flexible laminates

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HR is the lever for change, and a key for sustainability MUTHONI KANYANA, CEO of MK-Africa, reports on challenges facing the World – and how HR plays a vital role THE Institute of Human Resource (HR) Management, the professional body for HR practitioners in Kenya, recently invited me to speak at its 22nd annual national conference. The HR professionals wanted to understand sustainability, and how it affects their work. This presented an interesting opportunity for me to get into meaningful dialogue about the “people” aspect of sustainability strategy with those who understand it best. We began by simply defining sustainability, and distinguishing it from Corporate Social Responsibility (CSR). Sustainability is the process of maintaining a balance between

Becoming more sustainable for people and organisations is a necessity environmental (planet), social (people), and economic (profit) demands as part of the business strategy. CSR is more concerned with philanthropy and community relations.

Sustainability is the challenge of our lifetime. The statistics are daunting — we need 1.7 Earths to meet our needs (Global Footprint Network), some 168 million children are engaged in child labour (UNICEF), the amount of solid waste generated globally is approximately six million tons per day (World Bank) and one in nine people in the World today lack access to safe drinking water. One statistic that caught our attention is that Kenya has been ranked eighth among countries with the largest number of people living in extreme poverty (World Poverty Clock). Yet, according to a Business Daily report, Kenya also created 180 new dollar millionaires in 2017.

Muthoni Kanyana, CEO of MK-Africa: ‘HR can improve company sustainability’

BUCKING THE TREND FOR BETTER RESULTS HR and benefits consulting firm launches BuckConnect to manage HR functions and improve workplace relations BUCKCONNECT aggregates a company's health, wealth, and career programmes and delivers them via mobile and web to maximise employee engagement. It claims to be a one-stop-shop for individuals and the organisation, while the underlying administration services remain “vendor-agnostic”. Employees can use machine-learning support tools on the platform to access, transact, and manage the HR programmes. Users receive individualised plan-support to help them achieve their goals. “The HR industry is in the midst of an unprecedented shift in the employee experience,” said Scot Marcotte, Buck's CTO. “Technology exists to recast HR service delivery from a humancentred perspective, using natural language, artificial intelligence, and robotic process automation.” Employers can also review custom dashboards and model scenarios to evaluate how well plans are working, relative to their objectives. Terri Moore, senior benefits specialist at Daimler Trucks (North America) said that enabling employees to access all of their benefits and compensation information, and engage them in their programmes, had been a challenge. “Buck consolidated five vendor partners into a single experience for our employees,” she said. “With 67% of our population using the site regularly – a significant number of whom access it through their smartphones – we've seen marked improvement in our employee engagement while streamlining some of our processes.” The platform incorporates Buck's proprietary modules, analytics, and industry expertise and helps employers offer a tailored user experience for behavioural change. The result, Buck claims, is higher employee satisfaction rates, as well as a healthier employee population, and increased productivity. Business Vision Winter 2018-19 Issue • www.bv.world

This income inequality makes the social and economic framework of the country unsustainable. Becoming more sustainable for people and organisations is a necessity. Our survival and prosperity depend on changing our current trajectory. And business has the largest impact. But sustainability is important not just for multinational enterprises, but for all organisations, whatever their size. Sustainability reporting helps to set targets, plan how to achieve them, and monitor progress. For HR this means reporting on issues relating to human rights legislation, as it applies to practices of employment such as the Employee Act, labour relations, employment equity, skills development, occupational health and safety, grievance procedures and affirmative action. Sustainability requires employers to conduct an analysis of employment policies, practices, procedures and the working environment HR professionals can play a significant role in promoting sustainability in their companies by incorporating sustainability education in the employee training process, involving employees in workplace initiatives (recycling, energy efficiency and reducing waste). HR can also facilitate the formation of committees to find ways to improve company sustainability. Volunteer initiatives like tree-planting and support for community-based initiatives can be encouraged (and measured) by HR. Within their own domain, HR professionals can eliminate paper from its talent-acquisition process making the hiring process entirely electronic. The bottom line is that if sustainability is good business, then the sustainability team is the change-maker – while the HR team is the lever needed to make the change.

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Let's talk about Gibraltar: tobacco, land-reclamation and environment on agenda for UK-Spain negotiations BREXIT has induced the UK and Spain to talk, once again, about Gibraltar. The two nations will negotiate the largest bilateral agreement on the Rock for the first time in more than a decade. The Spanish and British Governments have agreed on a new framework, consisting of four Memoranda of Understanding, on the most controversial issues that will come into force after the British-EU “divorce”. The pact aims for a more balanced link between the Rock and the Campo de Gibraltar, an Andalusian region battling

unemployment and contraband problems. Four texts have reportedly been signed by the Spanish Minister of Foreign Affairs, Josep Borrell, and the British Minister for the Cabinet Office, David Lidington. The agreements relate to tobacco, the environment, Customs, police co-operation and the rights of cross-border workers. UNDERSTANDING These have been hailed as the first steps towards a viable understanding between Madrid and London over a 300-year-old bone-in-the-throat issue. (The 2006 “agreements” of Córdoba

were never applied due to trust issues between the parties.) In principle, the new accords will only function during the transition period of the Brexit — less than two years — and are unlikely to satisfy both parties. The new texts specify that nothing “will entail a modification of the respective legal positions of the Kingdom of Spain and the United Kingdom with respect to the sovereignty and jurisdiction of Gibraltar”. In other words, the Spanish government will not be able to use this framework to talk about co-sovereignty until 2021, at the earliest.

A Gibraltarian ape, with Spain in the background

trabantos / Shutterstock.com The rights of cross-border workers and a reduction in smuggling are two of the objectives

A BRIEF HISTORY OF GIBRALTAR SPAIN'S claim to the territory of Gibraltar is rooted in the early 18th Century. King Charles II of Spain was childless. He bequeathed his crown to Philip (Felipe) of France, grandson of Louis XIV. The united monarchies of Spain and France threatened the balance of power in Europe, and 1701 saw the outbreak of war between France, Spain and Bavaria on one side, and Austria, England, the Dutch Republic, Prussia, Portugal and some German states on the other. Although peace talks began in 1705, the war didn't come to an end until the signing of the Peace of Utrecht in 1715 — an agreement which officially ceded Gibraltar and Menorca to Great Britain. After two more wars, the 1729 Treaty of Seville confirmed British rule. The seeds of hostility had been sown. Spain protested the extension of Gibraltar's fortifications beyond its permitted limits, as well as harm to revenue because of smuggling — a parallel to today's concerns. Spain had mixed fortunes in the 1783 Peace of Paris treaty, an agreement that brought an end to the American Revolutionary War. Spain regained Menorca, but Britain retained Gibraltar. Britain refused to exchange Gib for Puerto Rico; the Rock's geographical position — at the entrance to the Mediterranean — meant unhindered trade with the countries bordering the sea. But Spain maintains a territorial claim to Gibraltar. The border was closed in 1969 — under Franco's rule — and not re-opened until 1985. Since then, most of Britain's armed forces have left, and the territory's economy has been based on tourism, financial services, shipping and gambling. Two referenda on the question of self-determination have come down on the side of British rule. But in 2016's Brexit referendum, 96 percent of Gibraltarians voted to remain in the EU.

Business Vision Winter 2018-19 Issue • www.bv.world

The texts focus on the need to reduce the tobacco price differential between territories. In Gibraltar, taxation is minimal — which makes contraband an appealing prospect for smugglers. The differential, the agreement states, should not exceed 32 percent of the average tobacco price in June 2020. That gap stands at 48 percent at the time of writing. TAX HAVEN The other documents relate mainly to the exchange of information and the creation of joint committees to govern the British colony, considered by Spain a tax haven. A technical commission will exchange information on other controversial issues such as land reclamation — placing landfill in waters of disputed sovereignty to expand Gibraltar's surface area. The rights of citizens, perhaps the most sensitive issue on the agenda, are expected to conform to the provisions of that European protocol. A joint commission will be created to pursue this part of the agreement.

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Glue-shoe syndrome for Brexit: any steps forward… or are we going sideways? An analysis of the latest Brexit developments shows that just beneath the surface of the mud… is more mud. BV’s JASON AGNEW reports.

THE Eagles' 1977 hit Hotel California ends with the line, “You can check out any time you like, but you can never leave.” Fast-forward 41 years, and those words seem eerily apposite to the situation that the United Kingdom finds itself in regarding the imbroglio commonly known as Brexit. This unfortunate portmanteau refers to the United Kingdom leaving the European Union, a feat no country has hitherto attempted. On November 25, 2018, the 28-member countries of the EU (or 27 plus the decamping UK) agreed in Brussels on what they described as “the best and only deal possible”, an interesting juxtaposition of adjectives given their incongruence. The deal is that the UK will leave the EU on March 29, 2019 – but will play by the Union's rules until December 31, 2020. If no agreement on border control had been made by then, Northern Ireland would remain

The sovereignty of Gibraltar will not change inside the Customs Union in order to ensure a soft border with Eire in the hope of avoiding a return to the years of conflict. Britain's colonial past appears to be coming back to bite it on the backside as the Northern Ireland “backstop”: the British territory will maintain regulatory alignment with the EU, and the sovereignty of Gibraltar will not change. These are two factors that had threatened to scupper any deal. European Commission president, Jean-Claude Juncker noted that “this is no time to open the champagne” and that “there are no smooth divorces”.

The deal was supposed to be presented to the UK parliament for ratification on December 12, but the vote was postponed indefinitely by Theresa May once she realised that it was going to be “rejected by a significant margin'.' This triggered a vote of no confidence in the prime minister from her own party which she managed to win but 117 MPs from her own party voted against her. SLENDER MAJORITY The Conservative Party's “confidence and supply” agreement with the Democratic Unionist Party (DUP) in Northern Ireland, which has provided them with the slenderest of majorities in Westminster, is increasingly under threat. Across the Irish Sea, the ruling Scottish Nationalist Party objects to the status afforded Northern Ireland while Scotland – which voted 62 to 38 to remain – would be outside it. Ironically, Scotland voted to remain part of the UK in 2014, largely because the EU bluntly

announced that if the country were to leave Britain, it could not remain in the EU. This is all so confusing that a new acronym has been invented, and Tory ministers are now appealing to BOBs (those who are Bored Of Brexit) to support the agreement – all the while denying

them a second referendum. The Labour leader, Jeremy Corbyn, has described the deal as “the worst of all worlds” and Tony Blair calls it a “dodo”. Boris Johnson claims the European Union will have Britain “exactly where they want us” as “a vassal state”.

Whatever happens next is anybody's guess, whether there will be a second referendum or a no-deal Brexit. Plenty of pundits are ready with predictions. But it may well be that the vote which was supposed to restore the UK's sovereignty results instead in its break-up.

Business Vision Winter 2018-19 Issue • www.bv.world

Kevin J. Frost / Shutterstock.com

It is feared that a hard border between Northern Ireland and Eire could precipitate a return to conflict

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Ryan (and toys) This is YouTube's top earner, says Forbes magazine

PEOPLE

RYAN is eight, American, and unless you have a digital wheelbarrow full of Bitcoin, he has more money than you. Like, um, $22m (£17.3m). He didn't inherit it, or harvest and sell his parents' organs. He does what he does best: he plays with (and reviews) toys on YouTube. So free toys, millions of viewers and plenty of pocket money. Can't be bad. The young YouTuber's official place as top earner was recently announced by Forbes. At the time of writing, Ryan has 17 million subscribers and his videos have been watched 25 billion times. Yep, 25 billion, with a “b”. On his channel, Ryan ToysReview, this young entrepreneur gets a toy; viewers then watch him play with it. The next day it's ditched for something newer and shinier, but ‘twas ever thus for kids and toys. His surname is unpublished, but Mommy and Daddy take part in the videos, which first screened in 2015. The clips contain an educational element, packaged in a whee-whoopeekids'-TV-show style, as well as reviews of the toy of the day. Ryan's reported earnings do not include agents' or lawyers' tax or fees, but hey, they have doubled over the previous year. Forbes says the $22m total is mostly generated by advertising, with the remainder coming from sponsored posts. Ryan, with typical eight-year-old modesty, describes himself as “entertaining and funny”. To the untrained eye, it looks like a kid playing with toys while Mommy and Daddy coo and gabble, but there are some serious business smarts to the venture; a good review from the kid, and a popular toy can sell out within hours. Retail giant Walmart knows a good thing when it sees one, and it now sells a range of Ryan's World toys and clothing. The resulting revenues from the deal should bump-up Ryan's earnings next year. Reports say 15 percent of Ryan's earnings are put into a bank account that he can access when he becomes a legal adult. In the meantime, here's another toy, Ryan. What do you think…?

Paul Polman Recently retired CEO of Unilever World Economic Forum

THE RECENTLY retired CEO of Unilever, Paul Polman, wanted to study medicine – but ended up with an MA in economics and an MBA in Finance and International Marketing. It has worked out well for him. After his studies came a 27-year career with multinational consumer goods corporation Proctor & Gamble, during which time Polman rose from his starting position as a cost analyst to group president for Europe. Polman also served as CFO for Nestle before being appointed CEO of Unilever. During his 10 years at the UK/Dutch consumer goods multinational, he introduced and championed the Unilever Sustainable Living Plan, which has three main goals: - To improve the health of more than a billion people by 2020 - To halve the environmental footprint of the business by 2030 - To enhance the livelihoods of millions of people by 2020 Polman said at a forum last year: “Business needs to be an active contributor to finding the solutions that have an impact on society. After all, if a business cannot show what positive impact it has, why should the citizens let this business be around?” The 62-year-old has been frequently honoured for his professionalism over the years, receiving such accolades as CEO Of The Year and European Business Leader Of The Year, as well as awards for conservation and responsible capitalism. Along with these he has been granted an honorary doctorate and an honorary knighthood (although, being Dutch, he doesn't get the appellation “Sir”). Polman was named chair of the International Chamber of Commerce (ICC) in June 2018. On his appointment, he said he was looking forward helping businesses “to adapt swiftly and responsibly to current and emerging global challenges”. He also pledged to drive the UN's Sustainable Development Goals. Polman is chair of B Team, an organisation founded in 2016 to promote a business model which is sustainable and not driven by profit alone. Other big names in the B Team venture include Richard Branson, Christiana Figueres, Arianna Huffington and Mary Robinson.

Business Vision Winter 2018-19 Issue • www.bv.world

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New tech combines with oldschool values in success story PERU's Banco Ripley has been spotting new developments in the digital world to boost the group's strategy of introducing technological improvements in financial operations to offer a greater range of products and services. “We consider technology very important in the sector,” said Ripley CEO René Emilio Jaime Farach. “We believe that, in the future, technology will be at the centre of all our bank operations, to offer a greater number of communication channels to our customers.” The Peruvian banking industry has solid foundations, and this has been reflected in the sustained growth of Banco Ripley in recent years, “which is why we are talking about a healthy economy to date”, says Jaime. Despite the complex political moment that took place during 2017 and the first months of 2018, Banco Ripley, an actor with a longterm vision, focused on developing the best business strategies, which allowed it to act independently of the contingencies or moments of any economy. Ripley Corp. is the holding company of several enterprises that group retail, financial and real estate businesses, with a significant presence in Chile and Peru. It was created by the

Peruvian banking has solid foundations brothers Marcelo and Alberto Calderón in 1956, with the store called Calderón Y Confecciones, a clothing and retail business for men's clothing. In 1964, the first Ripley store opened in the Centre of Santiago. Its brand was inspired by a well-known North American brand dedicated to finding and spreading fabulous elements of the world. Towards 1976 the sale of products associated with a semiautomatic credit was started in each branch, which saw in 1978 the rise of the company named Comercial ECCSA SA (Establecimientos Calderón Confecciones SA), which grouped all stores together; that remains to this day. Commercial activity was separated from production, which still came under under Calderón Confecciones. In 1993, Ripley opened its first store in a mall, initiating a new concept of service and brand presence. In 1997, it began its

The new logo of Banco Ripley Perú

international foray with a store in Peru, a process that continued – with 34 stores at the end of 2016. In 2008 Financiera Cordillera S.A. (Financor) became a bank, and by 2009 the General Shareholders' Meeting modified the corporate name to Banco Ripley Perú SA. Banco Ripley has 20 agencies in Lima and 14 in the provinces, a total of 34 nationwide. Banco Ripley in Chile has 92 branches, 46 standalone banks and 46 located within Ripley Stores, in addition to three mixed agencies. The bank has a customercentric business approach, based on the applied feedback of users, to drive improvement of its processes and value offer, always with the goal of being a simple, local bank for the people. “Always having the customer as the centre of our business,” says Jaime, “from the area of digital transformation, means the best customer experience, with the focus on offering simple solutions through the digital environment, which is becoming easier than our customers.” The bank works to a dominant and noble philosophy: “We work to fulfill the dreams of the people.” Banco Ripley feels it outstrips its competitors with its pillars of simplicity, proximity, and transparency.

A new Digital Transformation Area has been created, which includes sub-areas such as digital marketing (aimed at performance), digital sales, digital channels, alternative channels and business intelligence; all with the goal of digitalising the bank's processes, and generating new business through digital media. “The market grows and moves towards a more digital path,” says Jaime, “and banks must adapt to face the new technological challenges of the market.” RATING INCREASED In April of this year, having met all the deadlines required by the SBS and the Deposit Insurance Fund (FDS), Banco Ripley's rating was increased from B to A- both for Class & Asociados SA, as for Equilibrium Clasificadora de Riesgo SA. Growth of the Inter-annual portfolio 17/18 to November was 2.29 percent. Being recognized for the third consecutive year as one of the best companies to work for in Peru is the reward for a constant effort to improve the workplace. “Being

Being a Great Place To Work means having a unique and important space a Great Place To Work means having a unique and important space where the collaborator knows that he can develop himself, with the support and confidence of a corporate model that looks after the business, the welfare of the people and the society itself. That is, with an organisational culture aligned with the business strategy.” Communication is fundamental to generate synergy

between the different work teams and achieve good results, an area Banco Ripley is aware of. “Our flow of communication within the organisation is horizontal and close, allowing a direct relationship at all levels,” says Jaime. “We have communication spaces specially implemented, aligned to our strategic actions. This allows team leaders to easily see business results, opportunities for improvement and upcoming challenges.” A GREAT TEAM But it all comes down to staff at Ripley. “I will always be grateful to this great family,” says Jaime. “We are a great team. The results obtained to date are thanks to the passion and effort put into their work every day with the sole purpose of providing an excellent service to our customers. “Without a doubt, they inspire me and make me strive every day to be a better person and professional. I am proud and convinced that we will continue to consolidate this growth path to fulfil the dreams of the people.”

Business Vision Winter 2018-19 Issue • www.bv.world

Banco Ripley has a customer-centric business approach based on the applied feedback of users

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Achieving a shared vision with a well-disciplined team Q&A with Banco Ripley CEO René Emilio Jaime Farach

BV: How do you evaluate Banco Ripley's performance in banking? René Jaime: Our bank is growing step-by-step at a steady pace, maintaining the confidence of the investors and of our clients. This has allowed us to improve the level of work environment satisfaction, maintaining our Great Place to Work (GPTW) ranking in Peru. We have also improved the recommendation index of our clients, reaching our highest-ever level. We have achieved excellent performance in risk management and collections, and we finish this fiscal year with a portfolio growth, due to the strong commercial impulse of recent months. In general, we have continued to grow as an organisation, strengthening and enriching our culture. All of this helps us to recognise that today we are a better bank than we were a few years ago. Still, we remain committed to move forward to be the bank we want to be. BV: How quickly and easily do you respond to the advice, suggestions or criticisms from employees, clients or collaborators? René Jaime: We have implemented a “Satisfaction Survey” for all our clients, where we communicate with them to evaluate the service they have received. If the result is not satisfactory, we assign it to the agency's manager, and within 72 hours, the manager will communicate with the client and provide a solution or respond to suggestions or criticism. For claims that by law must be

René Emilio Jaime Farach is CEO of Banco Ripley in Peru answered within the first 30 days of its filing, we have achieved an average of eight days for the resolution/response. For our collaborators, we have quarterly tests based on the GPTW methodology, and a simple survey that allows our collaborators to express themselves and helps us to learn what is best for our working environment. These surveys involve employees at all levels, allowing them to express themselves about their reports, peers, collaborators and supervisors. BV: What changes have you seen during your time as CEO? René Jaime: The young millennials of today will be the most banked population in coming years. Banking through technological means is a mandatory evolution, which in the next few years will enhance financial inclusion. It is important to highlight that Peruvians still want to look you in the eye when they ask for a credit. But new entrants to the world of financial consumption, such as young people, already live digital experiences and will

become the new consumers of financial products. BV: What achievements are you most proud of in your time as CEO? What challenges have you faced? René Jaime: Having achieved a team that works with discipline and commitment. They are responsible for the advances of the bank. I feel very proud to be part of them. We have also achieved other achievements that make us feel proud. The renewal of the certification granted by the entity in charge of oversight of banking and insurance operations or SBS (in Spanish) for an excellent management of our Operational Risk is one. We're proud of the beginning of the digital transformation process, that to date has achieved almost 60,000 downloads of our mobile app. And we have been recognised by a British magazine of world prestige as the Best Commercial Bank in Peru Likewise, we consider that innovation in social networks is a challenging task of great importance to which the bank is committed. We visited the Facebook and Google offices in San Francisco and Silicon Valley to continue acquiring knowledge on innovation and digital trends. BV: What attributes and skills do you bring to the table, as CEO, and what attributes does the bank have as an entity? René Jaime: My greatest contribution is having achieved a shared vision of the future for Banco Ripley with our team, having given them goals that challenge them and the freedom to demonstrate that they can overcome the challenges. They are the great heroes of our success.

Bernadetta Sarat / Shutterstock.com

The UN climate summit in Katowice was attended by both global investors and environmental activists

UNLESS coal burning is phased out and drastic cuts made to carbon emissions, the world faces a financial crash that will dwarf the 2008 crisis. So say global investors – managing combined assets of $32tn — attending a UN climate summit being held in Katowice, Poland. Some of the world's biggest pension funds, insurers and asset managers say it is time for fossil fuel subsidies to end. They have called for the introduction of harsher taxes on carbon. A Global Investor Statement to governments on climate change has been signed by 288 investors, giving full support to the Paris Agreement and urging all governments to “implement the actions that are needed to achieve the goals of the Agreement”. “The global shift to clean energy is under way,” the statement reads, “but much more needs to be done by governments to accelerate the low-carbon transition and to improve the

resilience of our economy, society and the financial system to climate risks.” Investors are incorporating climate change scenarios and climate-risk management strategies into their processes, and engaging with high-emitting companies. “We are concerned that the implementation of the Paris Agreement is currently falling short of the agreed goal of ‘holding the increase in the global average temperature to well below 2°C above preindustrial levels'… ECONOMIC IMPACTS “There is an ambition gap: the full implementation of current Nationally Determined Contributions (NDCs) would lead to an unacceptably high temperature increase that would cause substantial negative economic impacts.” Chris Newton, of IFM Investors — which manages $80bn and is one of the groups to have signed the statement — was quoted by The Guardian newspaper as saying the long-term nature of the

challenge had “met with a zombielike response”. The Global Investor Statement calls for the phasing-out of coalfired power stations across the world. Poland, which relies heavily on coal, and has huge reserves, is unlikely to heed that call. The US Trump administration is expected to promote “clean coal” at the summit — and, as the talks are being held next to the Coal History Museum in Katowice, that message may be well received by some. But “you don't create jobs for the 21st century by trying to whistle up jobs from the 19th century”, as Nicholas Stern, of the London School of Economics, observed. BlackRock, the world's largest asset manager, with almost $5 trillion in assets, said that all investors need to factor climate change — and the costs of halting it — into future risk assessments. Leaders at the summit will try to establish a set of guidelines to implement the Paris climate agreement targets.

Business Vision Winter 2018-19 Issue • www.bv.world

Carbon cuts — or crash: investors' dire warning at Poland climate summit

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It all flows together for Damon, White in win for water — and the World An actor/activist and a water crisis expert join forces to protect the most precious liquid of them all. HEATHER LEAH SMITH reports. SOCIAL and environmental activism has long been a passion of Matt Damon, and these days the actor and humanitarian is funnelling time and resources into his non-profit organisation, Water.org. “You cannot solve poverty without solving water and sanitation,” says Damon, who co-founded the non-profit with entrepreneur and pre-eminent water crisis expert Gary White. Damon and White were running separate water foundations in 2009 — H20 Africa Foundation and WaterPartners — when they decided to join forces

to combat the global water crisis, and merged their organisations to form Water.org. It was founded on the principle that water provides the key to breaking the cycle of poverty. Access to safe water reduces mortality rates, increases opportunities for education, and unlocks economic prosperity. Damon and White developed an approach to the water crisis that goes beyond charitable donations to empower people with longterm, sustainable solutions. Water.org has so far reached more than 16 million people and raised over $1.1 bn in loans

for water and sanitation for families across 12 countries. The organisation seeks to remove financial barriers that prevent families from tapping into existing water infrastructure. After extensive research and on-the-ground interviews with locals, White reached a disturbing realisation: the World's poorest families spend more than 20 percent of their income on water. Millions of families are unable to pay water vendors for a permanent supply. In an interview on The Daily Show, Damon pointed out that in many countries the poorest Hari Mahidhar / Shutterstock.com

Water.org has raised over $1.1 bn in loans for water and sanitation for families across 12 countries

Water.org

Matt Damon and Gary White joined forces to form Water.org members of the population are paying up to 15 times what the middle class pays. The burden disproportionately falls on women and girls, whose family duty is to “scavenge for water, day in and day out”. White added that women spend up to 200 million hours daily walking to collect water, and that children lose some 440 million school days annually — either from water-scavenging responsibilities or water-related illness. “It holds families and communities back from economic development and building a better life,” said White. “It is the basic building block that people need to put in place if they're going to move forward.” One way forward, according to Damon and White, is through microfinancing. Water.org provides affordable financing solutions through its WaterCredit initiative, which connects lenders with the people who most need them. Unlike traditional incomegenerating loans, White adapted microfinancing to the water crisis with income-enhancing loans — which buy back someone's time. “Fundamentally it's a bottom-up

approach,” said Damon, “not the classic paternalist kind of handout.” The WaterCredit initiative has reached five million people over the past decade, and has exceeded its founders' hopes and expectations. The loans boast a 97 percent repayment rate, despite the fact that more than half the borrowers subsist on less than $2 a day.

Water availability is a major social and economic concern in the 21st Century. About a billion people around the world are forced by circumstances to routinely drink water not fit for human consumption. Poor water quality and bad sanitation are potentially fatal, and an estimated five million deaths each year are caused by polluted drinking water. The World Health Organisation believes that safe water could prevent 1.4 million annual child deaths. Water is not a finite resource; the problem lies in the distribution of potable and irrigation water which is scarce, rather than the actual amount of it. In the developing world, 90 percent of all wastewater is pumped — untreated — into local waterways. About a third of the world's population, in some 50 countries, suffer from medium-to-high water stress. Of those countries, 17 extract more water than is recharged through natural water cycles. Water shortages may be caused by climate change, pollution, and increased human demand. A water crisis is a situation where the available potable water is less than a region's demand. Water stress, the difficulty of obtaining sources of fresh water, may result in further depletion and deterioration of resources. Water scarcity is being driven by increased freshwater use and depletion of freshwater resources. It can also have economic causes: poor management of available water resources. According to the UN Development Programme, poor water management is one of the most common causes of water scarcity.

Business Vision Winter 2018-19 Issue • www.bv.world

MOST PRECIOUS RESOURCE

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Femtech finding a place in venture capitalists' hearts Women comprise half the population, but account for less than five percent of CEOs running Fortune 500 companies. An indignant HEATHER LEAH SMITH reports. IS THE future female? Perhaps — but the present isn't. Global annual averaged earning figures show that for every $100 a man earns, a woman earns just $57. Women hold less than a quarter of senior management roles worldwide, according to women's rights non-profit organisation Catalyst. Research by market analyst firm Frost and Sullivan shows that working-age women spend nearly 30 percent more per capita on healthcare than their male counterparts. Women are the primary healthcare decisionmakers for many families, and key influencers for society. Danish entrepreneur Ida Tin founded the start-up and app Clue to address women's unmet

Danish entrepreneur Ida Tin coined the term “femtech” health and wellbeing needs, and is credited with coining the term “femtech” in 2016 (although the first start-ups appeared in 2013). Tin's eureka moment came when she was trying to track her fertility by manually taking her temperature and inputting the data into a spreadsheet. The cumbersome process inspired

her to launch Clue, which now helps 10 million women in 190 countries track their menstrual cycles, measure their fertility, and manage their reproductive health. During the embryonic stage of the market, femtech entrepreneurs found investors and venture capitalists unreceptive to what was deemed a niche market. The struggle began to convince the male-dominated boardrooms of Silicon Valley of the disruptive potential of period-tracking or pelvis-strengthening apps. A decade ago, the global femtech industry garnered a mere $23m in capital investment, according to data from the research firm PitchBook. Interest remained lacklustre for a few years but by 2013, investors began

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Clue now helps 10 million women in 190 countries track their menstrual cycles

Haven’t got a Clue? The app is widely available and has met with enthusiasm. patches to subscription services for feminine hygiene products and apps that remind users to take their contraceptive pills. But the term also covers “low-tech” innovations such as reusable menstrual cups, period-proof knickers, and organic hygiene products. “I believe venture capitalists will list femtech as one of their areas of interest,” she says. “Femtech will not be a term referring to ‘women in technology' but rather as an expanding category of technology that serves the vast opportunities that exist.” The burgeoning market is expected to become a boom, with the potential to reach $50bn annually by 2025. Women's reproductive health has been held hostage by the patriarchy for centuries, with male-majority legislatures passing all laws governing the female body. More countries and companies are now striving to ensure women have equality in opportunity, wages, and healthcare. The femtech revolution is helping to even the playing field with technological solutions to age-old problems.

ALL ABOUT IDA

BEFORE she founded Clue, Ida Tin was running a motorcycle tour company in Denmark. She was born and raised in Copenhagen, but travelled far and wide on two wheels, visiting Vietnam, the US, Cuba, Chile, and even Mongolia. She wrote a book about her experiences called Direktøs which became a bestseller in her homeland. In 2013, Tin co-founded the Clue app with Hans Raffauf, Moritz von Buttlar, and Mike LaVigne in Berlin. The number of users quickly rose to include people from 190 countries. Tin worked with Apple to help the computer company develop its own period-tracking software. She was named Female Web Entrepreneur Of The Year at the Slush Conference.

Business Vision Winter 2018-19 Issue • www.bv.world

to recognise the potential – and venture capital in the industry cracked $100m. The figure has continued to rise, and investments for 2018 are expected to top $400m (by October, they stood at $392m). Catalyst estimates that women control about $40tn of global consumer spending — and entrepreneurs and investors have begun to take notice. CULTURAL REVOLUTION The result is “a technological revolution, alongside a cultural revolution, allowing what was once taboo to emerge, liberated”, according to Tin. She estimates that in 2016, the market for feminine hygiene products was worth around $30bn. Add to that an $18bn contraceptive market, a $14bn fertility market, and a $4bn menopause market. “All of those markets will be altered and shaken by digital,” says Tin. “They will be linked and integrated through data with new services delivered through APIs from Apple HealthKit, Google Fit, Clue, and others.” The term femtech has come to encompass everything from smart jewellery and temperature

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Outrageous predictions for 2019: a prod to think ‘outside the box', or just a bit of fun? WILL this be the year when Germany enters recession, Apple “secures funding” for Tesla, Trump tells Powell “you're

fired” and Labour sweeps to a resounding victory and names Jeremy Corbyn as prime minister — sending GBP/USD to parity? Saxo Bank, the Fintech specialist focused on multi-asset trading and investment, released its 10 Outrageous Predictions for 2019 late last year. The predictions focus on a series of unlikely events which — were they to occur — could send shockwaves across financial markets. Saxo is quick to point out that these tongue-in-cheek predictions do not constitute its

official market forecasts for 2019 — but do represent a warning of a potential misallocation of risk among investors who typically see just a one percent likelihood to these events materialising. Chief Saxo economist Steen Jakobsen said the predictions had been made for more than a decade, and said it was more than an out-of-season April Fool joke. Its aim, he said, was to encourage investors to think outside the box. “This year's edition has a unifying theme of ‘enough is enough',” he said. “A world running on empty will have

to wake up and start creating reforms, not because it wants to, but because it has to. “If some of these outrageous predictions see the light of day, we might finally see a healthy shift toward a less leveraged society, with less focus on shortterm gains and growth, and a new focus on productivity and new economic revolution back toward globalisation with a fairer playing field after the immediate moment

of crisis. On the negative side, we could see considerable worsening of central bank independence, a credit crunch, and big losses in the asset where everyone is too long: real estate.” The Outrageous Predictions for 2019 are: 1. EU announces a debt jubilee 2. Apple “secures funding” for Tesla at $520/share 3. Trump tells Powell “you're fired” 4. “Prime Minister” Jeremy Corbyn sends GBP/USD to parity 5. Corporate credit crunch pushes Netflix into GE's vortex 6. Australian central bank launches QE on housing bust Down Under 7. Germany enters recession 8. X-Class solar flare creates chaos and inflicts damage worth $2tn 9. Global Transportation Tax (GTT) enacted as climate panic spreads 10. IMF and World Bank announce intent to stop measuring GDP, focus instead on productivity

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Time to re-invent how we manage risk â&#x20AC;&#x201D; or die at the hand of disruption NABIL ABU EL ATA has worked with global leaders to advance the science of risk management. He explains to BV readers how the latest technologies can be applied. FROM artificial intelligence and robotics to nanotechnology and quantum computing, our world is changing at an unprecedented pace and the associated business risks are growing exponentially. To thrive in the era of disruptive innovation, businesses need to create a wider domain of forward-looking risk intelligence. But traditional risk management practices are stuck in the past. Tracking known patterns of risk will always be important, but these insights won't help companies analyse the impacts of adopting new technologies

Forwardlooking risk intelligence and business models, nor will they help businesses defend against competitive risks. As the speed of innovation continues to accelerate, businesses that are unable to expand beyond the

limits of statistical models and human experience will probably die out as more nimble start-ups redefine and win-over customers. Since the introduction of risk-management, companies have worked hard to assess the probability of a specific risk event occurring, measure the resulting impact and plan accordingly to manage that risk. Many popular analytic methods promise users that the more data they have, the better conclusions they will be able to draw. But the dynamic complexity and hyper connectivity of modern systems

Companies have worked hard to assess the probability of a specific risk event occurring

make it challenging to accurately predict what will happen when new technologies or disruptive business models are introduced into existing ecosystems. Compounding the problem is the fact that many corporations are already fighting risks caused by the obsolescence of cost structures, outdated business platforms and practices, market evolution and pricing pressures that demand some form of action. However, change is often a difficult choice when it introduces a degree of risk that cannot be quantified. When the answers can't be found in historical data, risk can only be managed by identifying any and all possible points of failure across business ecosystems â&#x20AC;&#x201D; from the highest level down to the nuts and bolts of the system. And here lies the problem. A global business is an amalgamation of millions of dynamic parts and interdependencies, but the human brain is not wired to handle more than eight dependencies at one time.

With millions of internal and external dependencies involved, intuition, experience or even the most sophisticated statistical model can't even begin to anticipate when and how disruptive innovations, such as

Radically reshaping entire industries Bitcoin, robots or the Internet of Things, or external forces may radically reshape entire industries. In an age of hyper connectivity and hyper risk, humans are forced to make generalisations that ignore factors which may have profound impacts. Statistical models make the same generalisations to arrive at a predicted outcome, which may vary greatly from reality and

support poor decisions. Consider, for example, that in December 2007, the Fed's main economic model saw a lessthan five percent chance that the unemployment rate would be above six percent in two years. The rate actually hit 10 percent. This was an event that the model would have said was close to impossible â&#x20AC;&#x201D; meaning it was not considered as a plausible risk by policymakers. In turn many businesses were caught off-guard by the severity of the recession. These errors suggest fundamental flaws in the way forecasting models are built and force businesses to adopt reactive management practices that further accelerate risk and create unpredictable environments. As the rate of change intensifies, businesses will struggle to survive if they cannot define and make the right moves at the right time to achieve better economy, control risk and support critical renewal. New mathematical emulation and analytics technologies that are capable of covering entire

Business Vision Winter 2018-19 Issue â&#x20AC;˘ www.bv.world

Change is often a difficult choice when it introduces a degree of risk that cannot be quantified

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Computers, and then robots, are likely to gain a seat in the boardroom as trusted risk advisors

ecosystems as wide and deeply as they spread can help business leaders realistically quantify the financial and operational impact of any changes that may occur — including changes outside their control, such as a sharp increase in unemployment, a trade war, or the introduction of revolutionary technology. Cognitive algorithmic technologies used in physics and chemistry are perfectly suited for business applications, because they can reliably model the dynamic complexity of systems influenced by internal and external dependencies. Using these innovations, business leaders can learn what will break a system to achieve a wider and more profound objective that releases intelligence from the confines of historical patterns. As these technologies progress, computers and then robots are likely to gain a seat in the boardroom as trusted risk advisors, because — unlike humans — they can exhaustively explore any number of risks and potential solutions without considering perceived probability. Since businesses are dynamic, computerised mathematical

models can be updated and monitored for any changes that indicate a new risk is forming, or that the business may be nearing a scenario which may cause a disruption. In this case, pre-approved risk management strategies can be enacted to minimise any disruption — or at the very minimum, improve the time to recovery.

The Fourth Industrial Revolution Whether we want to acknowledge it or not, the dynamics of our hyperconnected world amplify the risks. Cycles of volatility will begin to accelerate unless we advance the way we identify and treat risk. To survive and prosper, businesses will need to reinvent how they approach risk-management. As computational power increases and technologies advance at exponential rates, why should we limit ourselves to a

simulation of the intelligence that already exists? If we can set aside our fear of robots taking over the world, isn't our goal really to surpass the cognitive limits of our species through the creation of the intelligence necessary to achieve a better, more stable future and lifestyle, free from the current economic, environmental and geopolitical flaws? Cognitive and algorithmic decision making will provide the rational and unbiased mechanisms to advance multi-stakeholder systems thinking in ways that harness the opportunities of the Fourth Industrial Revolution. If we want to build a better world, we must expand our domain of intelligence to cover the knowns and unknowns — and we must demand accountability from any business, government, regulatory body or other organisation that does not take that path.

Doctor Nabil Abu el Ata is the author of Solving The Dynamic Complexity Dilemma, The Tyranny Of Uncertainty and Leading From Under The Sword Of Damocles.

By NIGEL BOOTH CAROLE Gillespie's Flying Start, How To Make Your Own Luck At Work, is a self-help book aimed at people entering the workforce. People who have ambition – and difficulty in forming relationships. It begins with the basics: creating a network of contacts (it's who you know, not what you know, remember) and develops its theme with a concept called The Relationship Code. The code is broken down into easily digested components. The main premise is that relationships are built on four pillars: knowing and being known trusting and being trusted understanding and being understood valuing and being valued After exploring each of these steps (in a rather limited way), Gillespie builds on them by describing six behaviour patterns that she sees as fundamental. Being fair and consistent, for instance, and being honest and constructive. By effectively mastering the six behaviours, Flying Start asserts, readers may begin building those influential networks. The behaviours Gillespie focuses on are those that most people would recognise as essential to a strong interpersonal relationship; in this instance, the traits are adapted to meet the needs of career development in a business environment. The book makes no attempt to address the fundamental personal-image issues that drive the way individuals interact with others, such as shyness or a lack of self-esteem at one end of

• • • •

the scale, and confidence and articulacy at the other. She writes for those struggling to build relationships, with examples of real-life situations. Gillespie gives answers to specific questions that have been raised by people she has encountered in the course of her work. These conversations are used to illustrate and support her assertions, and while useful in positioning a concept, their effectiveness isn't demonstrated with examples to illustrate the outcomes. Nor is there practical guidance on how to reinforce and cement relationships. I found the book a little confusing, mixing concepts and content sometimes hard to knit together until I reached an illustration – more than halfway through the book – which neatly encapsulates the idea. Overall, the book lacks visual aspects to link concepts to concrete examples or inspire readers with some clarification of Gillespie's ideas. In the latter half of the book, the theme shifts back to branding, which had been given an almost dismissive, one-page introduction

in the opening pages. More space could have been given to the importance of branding to set the foundation for those four pillars, for a start. Taking the time and space to illustrate the fundamental concepts that relate to the core values and beliefs that drive behaviour would have further supported the contention that it is the scale and quality of a network that influences personal success. Gillespie's own story is a compelling one. She positions herself as coming from a disadvantaged, but parentally supportive, background. She uses her upbringing as grist, suggesting her circumstances were the blueprint for potential failure, rather than the driver of ambition and desire for betterment. She could have made more of her personal story to communicate the essence of how she has achieved success in her chosen fields of writing, speaking, and coaching business people in relationship development. Flying Start is a book of principles, and I have no argument with the basic ideas. They just stand in isolation, rather than forming a coherent whole. We have an engine, just not the vehicle. As a practical guide, it lacks a framework for regular or daily activity. As a primer it may serve to set a reader on the path to greater learning; as a complete work, it lacks depth and clarity. * Flying Start: How To Make Your Own Luck At Work by Carole Gillespie is published by Clink Street. RRP £8.99 paperback, £3.99 e-book). It is available online and can be ordered from bookstores.

Business Vision Winter 2018-19 Issue • www.bv.world

All engine, no wheels: selfhelp tome struggles to convey central concepts with clarity

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Pondering the future of the boot-shaped country in 2019 Has the dolce vita turned sour for Italy? BV’s JASON AGNEW takes a look at populism and its implications. AFTER the rise of populism that has manifested itself in Brexit, Donald Trump and now Italy, it might be timely to remember that this is not a new, or even recent, phenomenon. Play back to the boot-shaped country in the early 90s, when the old post-war order broke up. Operation Clean Hands led to the four main political parties: Christian Democrats, Socialists, Liberal, and Social Democrats — all disintegrating and vacating the national scene, leaving the path open for media mogul and football club owner Silvio Berlusconi. His brand of populism

‘Milanese magnate Berlusconi wasn’t done’ involved promising to run the country like a company, and used his extensive media interests to promote himself and showcase his rise to the top. His Pole Of Freedom & Pole Of Good Government party formed alliances with the separatist

Northern League ( Lega Nord) and the post-fascist National Alliance (Alleanza Nazionale). Berlusconi managed to convince many Italians, both in the wealthy north and impoverished south, that he could solve their problems. His Freedom Alliance coalition won a landslide victory on 28 March, 1994 — but only managed to stay in power for nine months, falling when Umberto Bossi's Northern League broke the pact. The Milanese magnate was not finished, however, and returned in 2001 to form a government. He was in power for seven of the next 10 years, duly becoming the

Davide Calabresi / Shutterstock.com

Five Star Movement, founded by Beppe Grillo, promised a universal basic income of €780 a month

LTRG / Shutterstock.com

longest-serving prime minister of the Italian Republic (3,340 days) before his past caught up with him and he was barred from holding public office. When Berlusconi wasn´t in power, Italy was governed by either weak centre-left administrations or technocrats until March 2018. In that month, the anti-establishment Five Star (Cinque Stelle) movement took a third of the votes and managed to cobble together a coalition with the xenophobic League. Traditional parties were swept aside, the Democratic Party falling below 20 percent for the first time in its history. Even Berlusconi, the master populist, was a victim with his party, Forza Italia, which roughly translates as “Come on, Italy”, polling a paltry 14 percent, his worst-ever electoral result. Italy, the birthplace of fascism, is a country with huge structural problems and enormous inequality between the north and south. Mario Draghi , Italian president of the European Central

Bank, described the country´s five southern regions as “the largest and most populous backward territory in the Eurozone” with half the growth of Greece since 2010.

The Northern League called for break from the rest of Italy Youth unemployment was peaking at over 50 percent in some southern areas. There are people in their 30s who have never had the opportunity to build a career, “the lost generation”. All of this makes fertile ground for politicians who promise yet more quick fixes. The new coalition pairs two parties who are no fans of the euro, and claim that Italy would be better off reverting to the lira.

The partnership is one of unlikely bedfellows in that Five Star did best in the south — with promises of a universal basic income of €780 a month and a clampdown on immigration — whereas the Northern League rose to prominence by advocating a regional breakaway from the rest of Italy, as they were fed up with subsidising the south. Where they do agree is on immigration, rejecting the EU´s budget constraints and scrapping compulsory vaccinations in schools. On October 23, 2018, the European Commission took the unprecedented step of requesting the Italian government to revise its draft budget — something no member state had ever been asked to do — giving it a deadline of November 13. The Italians ignored that deadline, insisting that the country had to maintain its deficit target of 2.4 percent (rather than the present 1.8 percent). It argued that plans to sell off state-owned property and other safeguard

Business Vision Winter 2018-19 Issue • www.bv.world

Silvio Berlusconi was the longest-serving prime minister of Italy before his past caught up with him

Guillaume Louyot Onickz Artworks / Shutterstock.com

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France’s ‘Gilets Jaunes’: an example of the populace rejecting the status quo

clauses, plus the fact that Italians are sick of austerity, should mean that the EU waive its rules in this case. However, on December 12, Italian premier Giuseppe Conte announced that the budget had been revised downwards to 2.04% of GDP, having identified additional financial resources (he did not specify what they were). Maurizio Molinari, director of the daily newspaper La Stampa, attributes the rise of populism to three factors. First is globalisation, which has caused an increase in economic inequality as businesses and jobs have moved abroad and the country as been flooded with cheap imports. Second is the massive increase in immigration, as refugees and migrants make the perilous journey across the Mediterranean in search of a better life. The Italian Minister of the Interior, Matteo Salvini — effectively the most powerful person in the coalition — caused international outcry earlier this

year when he closed all Italian ports to ships carrying migrants or refugees. The third foe is that of corruption, which has reared its

The financial crisis and the ensuing austerity has fuelled anger ugly head again. People suffering large drops in their income saw the elite carrying on as before. And it irked them. The Guardian newspaper says that “populists tend to frame politics as a battle between the virtuous ordinary masses and a nefarious or corrupt elite”. This can be seen in Trump´s “draining the swamp” rhetoric while giving jobs to unelected

family members, UKIP´s attack on the European gravy train and the Brexiteers' insistence on taking back sovereignty. Catalonia´s independence movement, blaming Madrid for bleeding it dry, and the French “yellow jackets” who have been aiming to bring down president Emmanuel Macron, are examples of the populace rejecting the status quo. It is undeniable that the financial crisis and the ensuing austerity have fuelled anger. Many working people have seen their wages frozen and many young people cannot find employment — or are on zerohour contracts with few prospects for a better future. With so many sectors of society feeling disenfranchised, how the future turns out is anybody´s guess. Whatever happens, it is unlikely that Europe — or many other places for that matter — will manage to emerge from this situation as societies which would be recognisable to those of the post-war consensus.

Evelyn Berezin

THE CREATOR of the World's first word processor, Evelyn Berezin, has died aged 93. Berezin's “Data Secretary” device was launched in 1971 by the company she founded, Redactron. She was one of BusinessWeek magazine's Top Leaders by the time she sold the company in 1976. Berezin reportedly set out to develop an electronic cash register, but the project morphed into something grander; and ultimately led to the embryonic word processor. It may seem a bit tame in the days of 5-G and AI, but in the 1960s office workers had no access to anything more sophisticated than Dictaphones and typewriters – even the most advanced of which had only limited “playback” facilities. IBM's word processor used relay switches, not computer chips, and was aimed at manufacturers of military equipment. “We were committed to building a computer to run our system,” Berezin told the BBC in an interview, “and we knew that we had to use integrated circuits because it was the only way we could make it small enough, and cheap enough, and reliable enough, to sell.” Her machine – with keyboard, cassette drive, electronic controls, a printer and (later) a screen – allowed editing of what had been typed. Compared with correction fluid or yet another sheet of paper after a finger-tangle right at the end of a document, these were major advances for secretaries and other office workers under pressure. Berezin had problems with the supply of processors and Redactron had to design in-house some of the chips required. There were teething troubles for Berezin's baby; it suffered from static electricity build-up in dry weather, which caused the sort of “Oh dear” glitch moments that would soon call for Control-Alt-Delete. Berezin's team once solved the problem by soaking office carpets with a bucket of water to raise humidity levels. The first production machine was delivered in September 1971, but sales were slow: less than 800 in a year. Rental, in cash-strapped times, was a more popular option. Redactron was bought-out by business equipment-maker Burroughs Corporation in 1976. It was an unhappy union, and Berezin left the company in 1980. She died in December.

Business Vision Winter 2018-19 Issue • www.bv.world

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Cryptocurrencies prices stagger — but it's still a buyers' market in 2019 VOLATILITY is back in the cryptocurrency market. After a relatively long period of growth and/or calm, Bitcoin, the largest digital currency by market cap, has seen price falls of up to $1,400 in recent weeks, going below the $5,000 threshold for the first time since October, 2017. The bearish sentiment is shadowed by a broader decline in overall cryptocurrency market capitalisation. But some investors will see the slide as a buying opportunity, says the CEO of one of the world's largest independent financial advisory organisations. Nigel Green, the deVere Group's founder and CEO, says that it isn't that long since crypto traders were airing concerns about the lack of volatility in the market. “Now volatility is back. Savvy investors understand that digital

currencies are the future of money and they will be capitalising on the lower prices to build their portfolios and shore-up their positions.” There are three main drivers for the current bout of volatility, Green says. UNCERTAINTY “First is the uncertainty surrounding the Bitcoin Cash ‘hard fork'.” A new version of Bitcoin Cash was recently launched; Bitcoin Cash is now known as Bitcoin ABC, and the new fork is called Bitcoin SV. These forks generate turbulence because investors have to choose a version. Second, Green says, is the recent scrutiny of the SEC, the US financial regulator. “Regulation of the digital currencies is now, I believe, inevitable,” he says, “and will, in the longer term, give investors more protection, driving

confidence and prices in the burgeoning market.” The third factor is the infamous herd mentality of some investors. Put simply, some of the cryptocurrencies are lower… because they went lower. “Prices might fall further, but we can expect a long-term upward trajectory for the crypto sector,” Green predicted. “Cryptocynics are using this current wave of volatility to knock digital currencies. Whether it's Bitcoin or any of the current generation of coins, cryptocurrencies are here to stay. “Financial traditionalists view cryptocurrencies the way traditional stores used to view online retailers. But they are failing to see that cryptocurrencies have already changed forever the way the world handles money, makes transactions, does business, and manages assets.”

Cryptocurrencies have forever changed the way the world handles money

NEW research shows that “information asymmetry” between traders and investors is driving huge price swings in cryptocurrencies. Daniele Bianchi and Alexander Dickerson, of Warwick Business School, used intraday prices and volume data to investigate whether trading activity in cryptocurrency markets predominantly consists of investors speculating on information asymmetry, where one party has more, or better, information than the other. The researchers found that intraday, and daily, interaction between past volume and returns can predict future returns. This is consistent with existing theoretical models, which postulate that informed traders who speculate on their private information are key drivers of price changes. The research also has practical implications for cryptocurrency trading as a conditional reversal strategy. This is based on past returns and volume, and generated a risk-adjusted annual return (net of transaction costs) of 342 percent and a Sharpe ratio (a measure of the return of an investment compared to risk) of 2.4 – with almost zero correlation with Bitcoin-dollar returns. It outperformed conventional portfolio strategies such as momentum, even when transaction costs were included. CRYPTOCURRENCY IS A FRAGMENTED SYSTEM Bianchi said the cryptocurrency market was “the perfect environment to exploit asymmetric information”. “Its opaque nature and the fragmented system – where it mixes web-based brokers and peer-to-peer exchanges with regular major exchanges, which the small exchanges rely on for liquidity – means those who have the information can time the market, make money and drive the prices.” To test this theory, the researchers constructed a reversal trading strategy based on volume and past returns and found that it does not correlate with volatility, aggregate market returns, or strategies built on past performances, “so it is really volume that has the relevant information”. A similar market structure can be found in Foreign Exchange (FX) markets. However, with previous research showing that the dynamics of cryptocurrency returns and volume is neither bound by economic fundamentals, nor correlated with traditional asset classes – FX included – the findings show a need for caution: trading activity in cryptocurrency markets isn't like other asset classes. The authors tracked 26 cryptocurrencies over 150 exchanges from January 1, 2017, to May 10, 2018, when the cryptocurrency market experienced a huge boom during December 2017 and January 2018, a major collapse from February 2018 to April 2018, and then traded sideways. These major currencies cover more than 90 percent of the trading volume of coins using Bitcoin as the base currency. Bianchi believes the research also shows how Bitcoin-centric the cryptocurrency market is, just as the US dollar dominates the FX market. “Unlike more mature, centralised markets – such as equity – trading in cryptocurrency is inherently generated by an opaque information flow. Cryptocurrency markets are made by a highly fragmented, multi-platform structure which is populated by vastly different operators. “This means the interaction between trading volume and price changes can actually help shed some light on investors' trading motives, especially as there are no closing times in cryptocurrency markets.”

Business Vision Winter 2018-19 Issue • www.bv.world

EVIDENCE HIGHLY INFORMED TRADERS ARE DRIVING CRYPTOCURRENCY PRICES

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Cooking up a storm takes on a new meaning for Spanish disaster-relief chef Andres By HEATHER LEAH SMITH COMBINING his skills as a chef and entrepreneur, Jose Andres is on a mission to cook for the many, instead of the privileged few. The Spanish native was at a high-profile cooking event in the Caribbean in 2010 when the earthquake hit Haiti, devastating the island and killing 200,000 people. The disaster provided the final impetus for Andres to establish the non-profit organisation, World Central Kitchen (WCK). Looking at the problems in Haiti through an entrepreneur's eyes, Andres realised that there was often a disconnect between the solutions provided in a disaster situation and the actual

Feeding displaced people after earthquake circumstances on the ground. Just weeks after the disaster, Andres had forged a partnership with a Spanish company to bring in solar-powered stoves. Solutions like this helped to support the camps of displaced people that had formed around the island. Andres created World Central Kitchen to bring innovative ideas

and creative solutions to bear on some of the big challenges surrounding food, particularly concerning hunger and poverty in emergency situations. Andres has a history of working with humanitarian causes, including his early years with the Spanish navy where trips along the Ivory Coast impressed upon him the impact of extreme poverty and lack of food. His work with the navy eventually led Andres to the US, where he decided to build his future, becoming a naturalised US citizen. During his early years in the US, Andres met Robert Egger, founder of the nonprofit organisation DC Central Kitchen, and spent much of his early career volunteering with

arindambanerjee / Shutterstock.com 68

Haiti earthquake 2010: camps of displaced people formed around the island

Jose Andres speaking at the Feeding The Planet Summit in Washington in 2013 funding, we don't rely on contracts or other things to be able to operate,” says Nate Mook, WCK executive director, who

feels fortunate to have built such an incredible support network. “We're very grateful and reliant on our many private donors, and it's

Business Vision Winter 2018-19 Issue • www.bv.world

Egger — and learning from his vision to solve some of the world's problems through square meals. Humanitarian leanings had been brewing throughout his career, and the Haiti earthquake sparked Andres to take on a more direct role. Andres now sits as the WCK chairman and founder, although he doesn't collect a paycheque. This is a labour of love for the charismatic chef, whose official business is his expansive network of culinary experiences in the US and beyond, ranging from food trucks to fine dining — and including a Michelin-starred minibar, a two-star Michelin restaurant, and four Bib Gourmands restaurants. The knowledge and expertise developed through his career has guided WCK's operational ethos, and the non-profit has received widespread support from Andres' network of colleagues and fans. The organisation is funded almost entirely from private donations, some from foundations or generous investors, but the bulk comes from its network of grassroots support. “We don't rely on government

Tiia Monto / Wikimedia Commons Solar-powered stove like this one are a godsend

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not just a handful of big funders. We have an incredible grassroots support system, people donating $25 or $50, and that really goes a long way to enabling us to do this work and just enabled us to focus on the needs of the people that we're serving.” Since its launch, World Central Kitchen has been feeding the hungry masses, but 2017 was a record year. In the aftermath of hurricane Maria, WCK served over 3.6 million meals in Puerto Rico. The success of the volunteer efforts led Andres to create a model for what he calls, Food First Responders, which is designed to reinvent the way people connect and contribute in the aftermath of disasters. “If you have a medical emergency, who do you tend to send in? Of course you send doctors, that's a no-brainer,” Mook reflects. “And yet when it comes to food emergencies right now, we're not sending in the people who are the best in that, and that's chefs: people in the industry, people who know how to cook, how to serve, and how to do it at

scale. That's the analogy that Jose sees, that in times of crisis we can activate and bring an incredible group of people together.”

Nominated for the 2019 Nobel Peace Prize World Central Kitchen took its Food First Responders playbook and scores of volunteers on the road in 2018, preparing fresh, healthy, and nutritious food at a massive scale in emergency situations stateside, from forest fires in California to hurricanes in Florida and North Carolina — and serving abroad in Brazil, Cambodia, Cuba, Dominican Republic, Haiti, Nicaragua, and Zambia. “We work with an amazing group of volunteers from all over, including local volunteers everywhere that we operate and respond to,” says Mook. “Every place we go we continue to build and grow the team.”

There are lots of ways to get involved with World Central Kitchen, and you don't have to be a Michelin-star chef to participate. “We welcome all skill sets, all ages, anybody that can make a sandwich or peel potatoes is welcome to be part of the kitchen,” says Mook. “If we're in a disaster relief scenario, we'll often set up a Facebook page for that specific location and then invite people to join. “The best thing to do is just reach out and contact us.” In addition to WCK's emergency services — which prepared and served more than 4.5 million meals in the aftermath of natural disasters of 2018 — it also invests in long-term sustainable solutions that empower impoverished communities to be part of the solution, with a focus on health, education, jobs, and social enterprise. These efforts to ease the world's suffering have brought Andres recognition. He was named 2018 Humanitarian Of The Year by the James Beard Foundation and has been nominated for the 2019 Nobel Peace Prize.

Hurricane Maria reaching Puerto Rico in 2017. In the aftermath, WCK served over 3.6 million meals.

Mike CannonBrookes Atlassian

TECH billionaire Mike Cannon-Brookes and his wife, Annie, lashed out and bought Australia's most expensive home, Lady Fairfax's Point Piper mansion Fairwater. Cannon-Brookes, the co-founder of software company Atlassian, is said to have paid $100m for the Sydney harbour estate, owned for more than a century by the Fairfax family. Atlassian was founded by Cannon-Brookes and Scott Farquhar in Australia in 2002, and was worth almost $30bn late last year. CannonBrookes and Farquhar are both graduates of the University of New South Wales. Cannon-Brookes said in a statement that he and his wife were “delighted with the purchase of Fairwater for our young family”. The couple have four children. Fairwater is the largest privately held property on the famous harbour, and has heritage status as a home of rare historic, aesthetic and scientific significance. It was built in 1882, and was the residence of the Fairfax publishing family since 1900. James Oswald Fairfax, grandson of the founder of the Sydney Morning Herald, John Fairfax, was the first owner. Mary Fairfax lived there until her death in 2017. During her residence, many highly valuable artworks were installed, including paintings by Degas and a bronze sculpture by Rodin. There had been an expectation that the property would be left to the state of New South Wales, but despite the price it was quickly sold. Cannon-Brookes is among the 10 richest Australians. Or was. That Top Ten standing may have taken a knock after the $100m for the house, plus estate agents' fees, moving costs and what-have-you…

Business Vision Winter 2018-19 Issue • www.bv.world

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High street hopes trump high ambitions for UK's hyper-local SME community UK BUSINESSES are “hyper-local” with few international aspirations, a recent survey revealed. As Brexit draws closer, more than half of those canvassed believe their local market is the most important for future growth, and over a third have no interest in international trade. The report by financial adviser Kreston Reeves – Going For Growth: UK Company Growth Strategies To 2021 – found that 18 percent of businesses generate 75-100 percent of their revenue locally. The survey was conducted over the summer of 2018 and surveyed 530 privately owned businesses from across the UK, 80 percent of them with a turnover of below £25m. Kreston Reeves spokesman Andrew Griggs said that the future of business was increasingly global,

and the lack of international ambition was “worrying”. Please see the panel opposite for the main findings of the Going For Growth report. A surprising 47 percent of those surveyed see Brexit as a business opportunity, with 45 percent saying their growth plans have been positively affected by Brexit. Just 24 percent perceive Brexit as an obstacle, and only 24 percent think it has negatively affected growth plans. “It is surprising that so few businesses scenario-plan and prepare for future uncertainties,” said Griggs, who believes the greatest concern highlighted by the report is the reliance on UK customers. A quarter of businesses surveyed generate up to 25 percent of their revenues from

Europe, compared with 21 percent from North America and South America, 23 percent each from the Middle East and Asia Pacific, and 22 percent from Australasia. The difficulty of resourcing international expansion holds back 28 percent of businesses, with a further 27 percent saying lack of experience is the main barrier. “The advice and support businesses need to support international expansion is quite straightforward,” said Griggs. “They want help in identifying customers, partnering opportunities to spread risks and better government support and incentives. “Accountants and other advisers need to play a greater role in advising businesses on international growth.”

More than half of those canvassed believe their local market is the most important for future growth

A third of businesses surveyed expect to see growth come from investment in new technology

GOING FOR GROWTH REPORT FINDINGS More findings from the survey by Kreston Reeves: • 60 percent of businesses have grown by more than 25 percent over past three years

• 58 percent of businesses remain positive that they will grow by more than 25 • 34 percent expect to see growth come from investment in new technology • 31 percent of businesses will finance growth through retained profit • 21 percent believe business uncertainty to be the biggest barrier to growth • 35 percent of businesses fail to prepare for eventualities • 35 percent of businesses have no international aspirations at all

Business Vision Winter 2018-19 Issue • www.bv.world

percent over next three years

• 28 percent say they are unable to resource international expansion • 32 percent say they would like help in finding international customers 73

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Blockchain and biomass scheme brings a new opportunity to lessen energy industry's global footprint THE ENERGY industry gets a bad rap for its excessive carbon footprint, but with more countries and companies looking to clean up their act, the balance is set to tip towards a more sustainable future. Ever-growing landfills and greenhouse gas emissions threaten our future, but recent technological advancements have sparked a revolution in the energy industry — and enabled savvy entrepreneurs to convert some of those challenges into opportunities. Julien Uhlig, CEO of the green tech start-up Entrade, has a vision of a world completely powered by renewable, sustainable, zerowaste energy — and he's doing

everything he can to manifest that vision in his lifetime. Uhlig founded Entrade in 2006, with the aim of converting common waste into clean energy. “We believe that waste is one of the major challenges of the 21st Century,” he says, “and it needs innovative technology to convert that waste into clean electricity, heating, and cooling right onsite.” And that's exactly what the company delivers: high-tech, mini-modular, off-grid power generators fuelled by biomass made from organic and inorganic waste. Ten years ago in Ethiopia, Uhlig was working with the German Ministry of Economics

and Energy with the goal of building a fully renewable microgrid capable of powering a small village. Back then, the technology hadn't yet caught up to Uhlig's vision. Power plants were large facilities then, expensive to run and difficult to manage. But thanks to years of research and development — and over $100m in fundraising thus far — all of this has now changed. Entrade's modular power plants are housed in compact selfenclosed containers (up to four units per container), which can be shipped worldwide using air freight and installed in as little as two hours. The durable containers protect the low-maintenance machines from the elements and

A more conventional biomass power plant: Entrade has taken things to a smaller scale

breakdowns. Each unit generates 25 to 50 kWel, and can be scaledup with additional Entrade units or other renewable energy sources to create decentralised microgrids of sustainable power. Entrade's small-scale power plants run on a diet of pellets made from processed waste, such as wood chips, mixed with shredded plastic waste. The units convert the biomass feedstock into a natural gas replacement that can be used in most applications where natural gas, propane, or butane is used. When Uhlig and the Entrade team developed the first unit, it cost around $5m to complete. Now they can produce the units for around $250,000. As digitisation opened new avenues of automation, Uhlig decided to diversify Entrade from the design and development of clean energy tech to include the production, storage, and sale of energy as well. Entrade now operates – partly through its subsidiaries and partnerships – micro-grids of renewable energy plants across the world. The company has aligned itself with partners which share its dedication for sustainability — and which have the technological skills and creativity to help the company reach its goals. Entrade's strategic

partnership with Schneider Electric delivered software and hardware innovations to enable full automation of the Entrade system and its clusters on site. “The Internet of Things is the foundation of our business model. So now I'm actually able to run an entire global utility from my mobile phone,” says Uhlig, who credits the remote management of a global decentralised utility to Schneider Electric's EcoStruxure software products. MAJOR ACHIEVEMENT “Our major achievement in working with Schneider Electric is finding a global partner that understands our vision, that shares our vision of bringing clean electricity, heating, and cooling as efficiently as possible to millions of people all over the globe.” Uhlig views this as an opportunity to turn waste into energy and to provide electricity to those who previously had no access. It also creates jobs, building economies and improving people's lives. “I believe that blockchain is the missing piece to help us bring our decentralised utility to all parts of the world,” writes Uhlig in introduction to his latest entrepreneurial endeavour, Entrade IO, an energy platform connecting investors and donors

with renewable energy projects of high global impact. The platform links the management of the investment to the monitoring of the energy units created, managed, and sold in real-time. The transparency and security afforded by blockchain technology allows users to monitor and monetise their financial investments, as well as their social and environmental impact. “Smart contract ledgers, free flow of capital, dedicated token offerings for funding and direct donations will revolutionise the way small scale, high social impact energy projects will be funded in the future. “The next step in our company is to roll-out our products and services worldwide. We've already built a completely decentralised utility I can run from a mobile phone anywhere in the world. So now is our time to grow.” Entrade has more than 210 units in its global IT infrastructure. “We've done 11 countries so far, on three continents, and our next step will be to really make an impact and bring electricity to some of the poorest people on Earth. “When my daughter asks me what I do at work, I'm really proud to say that we're striving to make millions of people's lives better.”

Business Vision Winter 2018-19 Issue • www.bv.world

Entrade’s power plants run on a diet of pellets made from processed waste, such as wood chips

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Automation will cost some jobs — and create others ONE IN five medium-sized businesses in the UK believes that automation will help them compete with larger rivals. Larger firms have so far been quicker to adopt automation, and a report from the World Economic Forum suggests that while automation is likely to displace 75 million jobs, it will also create 133 million new ones. Seen as a threat and as an opportunity, automation is having a ripple effect across industries and companies. According to research from fintech firm Centtrip, one in three medium-size businesses believes new technologies will save money, and almost threequarters (74 percent) already use automation in some or all areas of their business. The survey of more than 500

Technology is seen as a threat and an opportunity decision-makers has also showed that two in five medium-sized firms (42 percent) believe automation would save time — and more than a third (37 percent) agree that it would allow staff to focus more on strategy. Almost a quarter of businesses interviewed said they could reduce their headcount as they introduced automated services — but they acknowledged that it may be necessary to hire new staff who

can provide specialist skills. Centtrip CEO and founder Brian Jamieson said automation represents “the onset of the digital revolution across sectors and industries”. “It is already transforming the way companies operate,” he said, “boosting productivity and innovation in the fields that long relied on old-fashioned and often inefficient processes and systems.” Initial costs could be offset by the potential for smaller companies to catch up with larger rivals. This will benefit customers, Jamieson believes, “as they have more choice of and access to better financial services”. Accounting and treasury management services stood to benefit from automation, Jamieson added.

‘It is already transforming the way companies operate, boosting productivity and innovation’

THREE-quarters of Chief Financial Officers (CFOs) believe digitalisation will have a positive impact for temporary employees in the finance department, a report shows. Research from recruitment specialist Robert Half UK has found that as companies struggle to adapt to the rapidly changing finance landscape, many are hiring from the financial planning and analysis sector. To ensure a smooth transition as they build inhouse capabilities, CFOs are hiring temporary workers with previous experience of helping firms with transformation â&#x20AC;&#x201D; still maintaining financial control. More than a third of the CFOs canvassed agreed that temporary staff would be crucial to stay ahead of industry automation, as more organisations look to

implement automation software and solutions. A third also said that temporary employees bring a broad range of in-demand skills to their business â&#x20AC;&#x201D; including those that will help with the ongoing digital transformation. FINANCE DEPARTMENTS In 2018, CFOs were most likely to budget for temporary staff in financial management (32 percent), followed by accounting (28 percent) and credit management (27 percent). Overall, CFOs believe that digitalisation will benefit the finance department. Just under half felt it had increased team spirit, while nearly two-thirds said it had improved team innovation. Digitalisation is also helping to drive efficiency within finance departments, with many implementing software to

streamline operations, therefore reducing the need for staff who simply input data and code. There was an indication of the increasing importance of temporary staff to finance departments, with more than half of the canvassed CFOs saying that contractors were becoming a key component of their staffing strategy. CFOs are coming to recognise the strategic value of temporary and contract staff, especially those who can help adapt to digitalisation and implement automated processes that will save time and money. By augmenting the finance department with temporary staff, the priorities of meeting operation finance objectives can be maintained while allowing time for upskilling in new processes and systems.

Business Vision Winter 2018-19 Issue â&#x20AC;˘ www.bv.world

Digitalisation a boon for gig economy and contract staff

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Antonio Banderas

PEOPLE

ANTONIO Banderas' own story is not strictly one of entrepreneurship or finance, but he has other roles than cinematic ones. In Spain, Banderas is appreciated for his efforts to help small business gain a global market for their niche products, such as specialty wines and fragrances. He has partnered with premier brands to promote their products, careful to support only sustainable businesses that minimise their ecological footprint and adhere to socially sound policies. When he was born — 1960 — Spain was poor, isolated and traumatised by civil war. By the early 1980s, the countercultural movement La Movida Madrileña, swept aside the heritage left by the Franco dictatorship. Society and culture bloomed, along with the economy. Soon Spain was in the European Union, in the ranks of the world's most prosperous nations. Banderas built his career on the country's rising tide, and its openness and inclusiveness, and has been a UNDP goodwill ambassador since 2010. He regularly calls on his worldwide fanbase to support victims of violence, hunger, or natural disasters. “Poverty,” he says, “robs people of their potential and prevents them from being all they can be. This is why we need to mobilise all our efforts to end it.” Banderas has lent his instantly recognisable voice to a number of short movies and documentaries that seek to raise awareness of the United Nation's 17 Sustainable Development Goals (SDGs) which strive to end poverty. The SDGs are broad and interdependent, but with a separate list of targets to achieve. Achieving 17 goals means also achieving all 169 targets covering social and economic development issues including poverty, hunger, health, and global warming. Extreme goals call for extreme measures, and Banderas has been quick to put his shoulder to the wheel. On the business front, Banderas has recently teamed up with Amazon to produce the new series, Life Itself. The romantic drama is set in the US and Spain, and explores and celebrates the human condition. Which is kind of what Banderas is doing himself.

Thomas Piketty

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Fronteiras do Pensamento

FRENCH economist and author Thomas Piketty has a bold new plan for a fairer Europe. Piketty focuses on wealth and income inequality and is a professor at the School for Advanced Studies in Social Sciences (EHESS). His days must be pretty full, because he is also associate chair at the Paris School of Economics and Centennial professor at the International Inequalities Institute, which is part of the London School of Economics. Despite the workload, Piketty has managed to take a swing at right-wing populism, as well as a growing mood of disenchantment and enduring inequalities, in a new manifesto. The plan wasn't created by Piketty alone; more than 50 economists, historians and former politicians from six countries put their heads together. Proposals from the group include levies on multinationals, millionaires and carbon emissions. The nut of the manifesto is a call for a European assembly with a budget of €800bn a year, financed by taxing corporate profits, income and wealth, to tackle migration, poverty and climate change. . The Manifesto For The Democratisation Of Europe, as the plan has been labelled, blames EU institutions entrenched in a “technocratic impasse” that favours the well-heeled. “Following Brexit and the election of anti-European governments at the head of several member countries, it is no longer possible to continue as before,” the manifesto reads. “We cannot simply wait for the next departures or further dismantling without making fundamental changes to present-day Europe.” In suddenly sharp focus is the growing divide between the UK and the EU, and the pragmatic attempts by pro-EU politicians to staunch the flow of votes to anti-European populists come May's European elections. The manifesto criticises hardcore liberalism and right-wing movements “hunting down” foreigners and refugees. Italy's former prime minister Massimo D'Alema and Michael Jacobs – advisor the former UK prime minister Gordon Brown – are among the signatories.

Business Vision Winter 2018-19 Issue • www.bv.world

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‘Brainwashing' old work computers is a legal requirement for all companies

Anthony Hall / Shutterstock.com

Revealed: 30 percent of professional services providers don’t wipe the memory from redundant IT equipment. And that’s only part of the problem…

MOST UK businesses in the professional services sector fail to adhere to new rules on datawiping – and 81 percent have no official protocol for disposing of obsolete IT equipment. A survey by Probrand.co.uk of more than a thousand British workers in full- or part-time employment found a third of businesses in the professional services industry failed to wipe the data from redundant IT equipment. Law and accountancy firms were among those failing to comply with General Data Protection Regulation (GDPR) law changes. Almost half of professional services workers admit they wouldn't even know who to

‘Sensitive customer information is handled all the time’ approach within their company in order to correctly dispose of old or unusable equipment. The top five “most guilty” industries were transportation (72 percent), sales and marketing

(62 percent), manufacturing (59 percent), utilities (58 percent) and retail (57 percent). Probrand marketing director Matt Royle said that given the amount of publicity around GDPR, “it is arguably impossible to be unaware” of what is required for compliance. “This is especially startling to see from businesses within the professional services sector, where sensitive customer information is handled all the time.” Fines involved in a GDPR breach can potentially run into the millions – and also at risk are reputational damage, customer trust and loyalty – things which Royle says will become “financially significant”.

Merchant bankers pitch in to help funding for apprentices ‘The scheme is making a genuine difference’ and fully-trained apprentices that can hit the ground running is definitely the right way to go,” she said, “not only to address the glaring skills shortage threatening the UK engineering and manufacturing industries, but to create a diverse and dynamic workforce.” Close Brothers banking division MD Adrian Sainsbury said SMEs often needed assistance to take on apprentices. He says the programme was designed with that issue in mind, and to help with other issues smaller firms face. The merchant banking group

is contributing 50 per cent of the wages of the apprentices in the first year and 25 per cent in the second year, as well as covering all training costs. “Apprenticeships are an excellent way for UK SMEs to fill skills gaps, develop their future workforce and improve their longterm growth prospects,” Sainsbury said. “We believe the scheme is making a genuine difference to the participating SMEs.” James Selka, CEO of the Manufacturing Technologies Association, said it was a “fantastic project to be involved with” and said the MTA would always champion future generations of engineers. Selka said the bank's support and the centre's facilities dovetailed nicely for industry. “The support of Close and great facilities at the AMRC make taking on apprentices more affordable and effective for companies that might otherwise not be able to.”

Business Vision Winter 2018-19 Issue • www.bv.world

THE NEXT generation of engineers — hopefully brimming with energy and fresh ideas — is taking steps down the education path at Britain's AMRC Training Centre. The Close Brothers SME apprenticeship programme — supported by the AMRC Training Centre and the Manufacturing Technologies Association — has helped smaller businesses in the Sheffield City Region to take on 20 apprentices. The apprentices have now started on programmes at the training centre, part of the University of Sheffield Advanced Manufacturing Research Centre Group. The trainees are being taught the skills they need to make a contribution to a company — from day one. Nikki Jones, the director of the training centre, has praised the scheme for supporting SMEs in the region. “The recruitment of ambitious

The AMRC Training Centre is part of the University of Sheffield

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Call of the wild is heard, and acted upon, by parks group with a challenging mission AFRICAN Parks is an organisation on a mission to reverse some of the damage caused by wildlife poaching and habitat destruction across the great continent. The non-profit's holistic view of the challenges, and its â&#x20AC;&#x153;businessâ&#x20AC;? approach to conservation, are producing promising results. Populations of once endangered species now roam in greater numbers over rehabilitated natural habitats, while living standards in surrounding remote communities has improved thanks to the resulting economic development of the regions. African Parks' mission is to rehabilitate each of the 15 national parks and protected areas under its management to make them sustainable: ecologically, socially, and financially. African Parks was founded in 2000, and operates under the Public-Private Partnership (PPP) business model. It has pioneered a model for the management of protected areas through

Tourism helps the parks contribute to local and national economies partnerships with governments and local communities. In 2019, it has under its care parks and protected areas in nine African countries, covering a total of 10.5m hectares. Through these partnerships, governments retain ownership of the land, and determine the

Bangweulu Park in Zambia is just of those managed by Africa Parks

governing policies, and African Parks is accountable to these ruling bodies. Mandates are established which grant African Parks full responsibility of the parks' operational management. African Parks lays out the funding needed to run each park, typically between $1m to $3m annually. It establishes five-year business plans to optimise revenue and reinvest funds in the park, thereby reducing donor dependency over time. With funding in place, the organisation establishes local board-based entities to represent key stakeholders and establish a good governance structure. Once mandates, funding and management plans are confirmed, African Parks begins the long process of restoration and rehabilitation of the land, and the on-going protection of endemic wildlife species. To ensure long-term sustainability, the organisation focuses on a fivepillar approach. The first of these pillars is the

King of the beasts: but efforts are needed to stop the kingdom falling into ruin has the experience to know what's required, from park housing and headquarters to telecommunication systems and road works. The organisation's conservation efforts have begun to bear fruit. The restoration of the Majete Wildlife Reserve in Malawi transformed the area — once almost devoid of wildlife, income, or staff — into a park

employing more than 400 people, generating around $550,000 annually in tourist revenue, and home to more than 500 elephants and 2,000 game animals. In Zakouma National Park in Chad, the tireless efforts of the African Parks law enforcement operatives have allowed the elephant population to flourish, and 527 individuals were confirmed living there in 2017. Business Vision Winter 2018-19 Issue • www.bv.world

non-profit's law enforcement division, which provides security and stability for people and wildlife living in the parks and surrounding regions. Africa Parks employs the largest counterpoaching force of any nongovernment organisation (NGO) in Africa. The second pillar is a focus on biodiversity conservation through the active management of wildlife populations and their habitats, and the reintroduction of species into rehabilitated areas. To ensure the creatures within the parks' boundaries survive, and thrive, the organisation knows it must also ensure the protection and care of human populations living around them. This is the third pillar for Africa Parks, which works with local partners and communities to raise conservation awareness and create opportunities for the social and economic benefit of stakeholders. Tourism is the fourth “pillar” by which the parks can directly contribute to local and national economies — when properly managed. The final pillar is Infrastructure: Africa Parks

Poachers take a deadly toll on elephants and rhinos

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The park's Elephant Schools benefit local communities, educating children and employing over 160 workers, making Zakouma one of the region's largest employers. The organisation also reintroduced the first six black rhinoceroses into the park in 2018 – after an absence of almost 50 years – and 14 more will soon be released there. Across its diverse portfolio of properties, Africa Parks is enjoying similar stories of shared success — private and public partnerships, at work for the long-term sustainable conservation. It's a vital step to protect Africa's natural riches.

‘Elephant Schools' benefit local communities by educating children

Stopping the sun from setting on Africa’s rich wildlife

Professional gig economy booming as the war for digital talent intensifies Concerns over Brexit are set to increase growth of the professional “gig economy” – the use of temporary or interim specialised staff, often working independently. These workers are usually employed on a short-term basis to fill vacancies and skills gaps. Almost 40 percent of UK businesses say short-term employees are currently filling skills gaps in their organisations. An additional 28 percent plan to hire temporary or contract staff in the next 12 months, with the top benefits cited as supporting longterm staff absence (35 percent), providing staffing flexibility (34 percent) and to act as a stopgap

between permanent hires (32 percent). This recruitment strategy provides a short- to-medium-term solution while business leaders invest in internal training to upskill their current workforce (17 percent plan to do so in the next year). GROWTH AMBITIONS The other option is to continue to look for new, permanent staff to help them achieve their growth ambitions. Access to an immediate pool of specialist talent prevents costly project delays and helps businesses realise their potential and compete in an increasingly digital world. Flexible, strategic staffing models with a mix of permanent employees and highly-skilled temporary professionals can provide companies of all sizes with the ability to increase or decrease the size of their workforce based on workload demands and confidence.

Business Vision Winter 2018-19 Issue • www.bv.world

MORE than a quarter of UK businesses – 1.6 million of them – plan to hire temporary or contract staff in the next year, as digitalisation and a lack of talent creates skills gaps in the workplace. According to the Robert Half 2019 Salary Guide, technology is reshaping businesses; two in five UK organisations (38 percent) consider digitalisation to be the main force evolving in the modern workplace. DEMAND This shift has created demand for a new set of skills, such as DevOps, data visualisation, data management and analytics. While softer skills such as resilience, adaptability and critical thinking remain key characteristics in potential employees, a third of employers list candidates' technical skillset as their most important consideration when hiring. More than half of the CEOs canvassed admitted to having concerns over the lack of digital skills in the UK talent market, as businesses come under pressure to adapt to AI, automation and digitisation. This is especially prevalent in the technology sector, which is estimated to have a 40,000-strong deficit in professionals with the technological qualifications needed to meet the demands of the UK economy. These concerns are set to increase with uncertainty over Brexit, and the potential decrease to the skilled technology talent pool. Businesses are forced to adopt flexible recruitment strategies, which is driving a boom in shortterm hires and contributing to the

New strategies are driving a boom in the gig economy

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Danièle Nouy

HOT on the heels of our BV Autumn story about Elvira Nabiullina, a woman getting tough on banks, comes one about Danièle Nouy … a woman getting tough on banks. Nouy's job is to keep Europe's banks on the straight and narrow and remind their executives that honesty pays. In her four years as chair of the European Central Bank's (ECB) supervisory board, she made few friends in the financial world. As a matter of principle, she gave not an inch when faced with folly on the part of bankers, even when challenged by circumstance. Irish bankers recently found out that Nouy does not do tactful. She bluntly told them, on national television, that they did not deserve any bonuses until Ireland's banks have fully cleared up the debris of the financial crisis. She reminded the bankers that they have plenty of work to do on their balance sheets, and wondered aloud if this was the right time to discuss bonuses. In case anyone thought that was rhetorical, she added: “Definitely not, in my view.” Troubled banks are required to apply to the ECB for permission to topup their executives' salaries or pay dividends to shareholders. Nouy comes down hard on banks that “sort-of” address their issues – only to quickly revert to their old ways. Nouy shows no mercy either to banks that fail to meet the tightened capital adequacy requirements. She has a reputation for toughness, particularly when it comes to dealing with financial institutions that keep non-performing loans (NPL) lingering on their balance sheets. Nouy has clashed with national regulators as she forced banks to disclose and address the full extent of bad loans. She also got her way in Italy, and convinced banks to reduce their NPL portfolios. Nouy has been inspecting banks for over 40 years, first at the Banque de France and later at the French Prudential Supervision and Resolution Authority, which she headed between 2010 and 2013, before being invited to join Mario Draghi's executive team at the ECB. Her five-year term is drawing to a close, and the race is on the find a worthy successor. The prime contender for the job is Sharon Donnery, deputy governor of the Central Bank of Ireland.

PEOPLE

Andy P Mooney

SCOTSMAN Andy P Mooney, 63, is a man with a magic touch when it comes to combining business and pleasure. There's hardly a name he couldn't drop, but his own is barely known. CEO of Fender Musical Instruments Corporation is the sort of job title that has doors opening just about anywhere. And his link to one of the world's most revered musical instruments isn't the only string to his bow. Over the years, Mooney has had some classy business cards to pass around. He was Nike's UK chief financial officer, before moving to marketing and becoming chief marketing officer in the US. He headed the company's $3bn Global Apparel division, which is no small claim to fame. He also spent time in senior positions with the Australian sportswear manufacturer Quiksilver. A pretty good track record, then – and we haven't even mentioned Mooney's main claim to fame yet. Mooney also worked for the Walt Disney Company. He came into the organisation pretty high-up, starting out as president of Disney Consumer Products in 1999; he was made chairman in 2003. Perhaps most famously, he pioneered the $4bn franchise you're patiently waiting to hear about. A Disney On Ice show in Phoenix was the setting for Mooney's eureka moment; he saw girls in the crowd dressed as princesses, wearing handmade outfits. Disney didn't sell such dresses at the time, but by the end of 2001 it did: sales across the Disney Princess lines were knocking out merchandise worth $300m. Today that figure is more than $6bn. The franchise does not include all princess characters of the Disney pantheon, but it has things pretty much covered with 11: Snow White, Cinderella, Aurora, Ariel, Belle, Jasmine, Pocahontas, Mulan, Tiana, Rapunzel, and Merida. The franchise has also released dolls, videos, apparel and beauty products. Disney Princesses, under a single brand, has put costumes on more young shoulders than a herd of auditors could count – and made Mooney something of a king. Mooney resigned from Disney in 2011, but was recently profiled on the BBC's The Boss programme for that moment when he came up with a right royal idea.

Business Vision Winter 2018-19 Issue • www.bv.world

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Upswings and roundabouts, but Europe is looking good EUROPE'S continued strong growth sees activity firming-up in many economies â&#x20AC;&#x201C; and the forecast is that the trend will continue. Real GDP increased by 2.8 percent in 2017, up from 1.8 percent in 2016. The expansion has been largely driven by domestic demand. Credit growth has picked up, helping Europe's banks rebuild profitability. While leading indicators have begun to ease, they remain high. The forecast is for growth to stay strong, though declining slightly. Amid the good times, however, fiscal adjustment and structural reform efforts are not faring so well. Inflation and wage growth remain subdued in most advanced economies, and are projected

Inflation and wage growth subdued in some countries to gather pace only gradually because of slack labour markets. In central and eastern Europe, where economies are cyclically further ahead, wages are rising and inflation is expected to pick up. The subdued wage dynamics in some advanced economies reflect low inflation and inflation expectations, high unemployment â&#x20AC;&#x201D; and underemployment rates â&#x20AC;&#x201D;

as well as sluggish productivity. In addition, there are signs that wage Phillips curves are flat, and that spill-overs from regional labour market conditions and slow wage-growth in some economies are contributing to wage moderation. This holds back demand in other economies. It could be some time before wage growth picks up in advanced economies. The favourable outlook is subject to risks over the medium term. The most immediate stem from rich valuations in financial markets at the global level, notably an exceptionally low-term premium and a growing tendency toward inward-looking economic policies. European markets have weathered the recent financial

European markets have weathered the recent financial turbulence well

turbulence well, with capital flows to emerging market economies staying strong. Sustained declines in stock prices are often harbingers of lower growth and inflation. With many policy rates close to zero, and certain banks still engaged in unorthodox policies, the scope for further, effective policy easing in response to new shocks is not great – all the more reason to create room for fiscal policy manoeuvre. How long this recovery can run, even in the absence of external shocks, is a big question. Estimates for output gaps point to little slack in most economies, but unemployment rates— especially when defined broadly— still appear high. Whether the recovery can endure depends on the investment response, which has been subdued. It remains in a weakened state after the global crisis of 1991. Economic prospects continue to improve in the short term, but medium-term prospects are less bright. Policymakers should seize

the moment to push forward with reforms to boost growth potential. In countries where inflation is subdued, monetary policy should continue to be supportive to ensure a durable increase in inflation to targets. In countries where inflation is hitting targets, it should gradually normalise. In many economies, policymakers should try to bring fiscal deficits within range of balance over the next few years. This way, automatic stabilisers and fiscal stimuli can be deployed again, should downside risks materialise. Stabilising and bringing down public debt would help economies better cope with the pressures from growing expenditure on pensions and healthcare. Fiscal adjustment and easy monetary policy should also help the many economies that have rebuilt competitiveness since the crisis continue to lower their net external liability positions. Fiscal adjustment should be driven by efforts to improve the efficiency of government. This

is a major challenge in many emerging European economies which need to improve institutions and governance. Countries with enough fiscal space should use it to promote higher potential growth. The recovery provides an opportunity to move faster to deepen the Economic and Monetary Union. More actions are needed to complete the Banking Union. Instituting a European Stability Mechanism to backstop the Single Resolution Fund would mark an important first step toward greater risk-sharing. Then there is the strong case for a central fiscal capacity. Access should be conditional on compliance with fiscal rules, and combined with mechanisms to prevent permanent transfers between countries. With the UK leaving the single market, there is a more urgent need to advance the Capital Markets Union, which requires steps to promote harmonisation of insolvency regimes and better protection of cross-border investor rights. Source: IMF 2018

Business Vision Winter 2018-19 Issue • www.bv.world

Real GDP increased by 2.8 percent in 2017, up from 1.8 percent in 2016, driven by domestic demand

.W O R L D Awards 2018 Winter announcement highlights

AN INVITATION TO VOTE Readers are cordially invited to vote in the Business Vision (BV) Awards Programme. BV seeks out candidates with outstanding corporate achievements but all eventual winners will have convinced the judging panel that they have the vision to maintain and build on their success well into the future. Visit our website www.bv.world/awards to place your vote or email us at award@bv.world We will send you a copy of the nomination form. The information you provide will be used by the BV judging panel but not shared with third parties. As a small token of our thanks you will be entered in a free draw for a one-year complimentary subscription. No vote is wasted. Your recommendation will receive our full attention.

African Parks — Outstanding Contribution to Conservation | South Africa 2018 AFRICAN Parks, the Johannesburg-based non-profit conservation organisation, protects natural landscapes and defends wildlife across the entire African continent. In partnership with local communities and governments, it assumes complete responsibility for the long-term sustainable management of 15 national parks and protected areas in nine countries — covering 10.5 million hectares. African Parks aims to stop catastrophic species loss and wilderness destruction by adopting a business approach to conservation. The non-profit secures 20-year contracts to assume absolute authority over park management, including the law enforcement component. This gives the organisation real teeth in the fight against increasingly militarised poaching networks, fuelled by an illegal wildlife market valued at $20bn a year. The BV judging panel recognises African Parks for its support of wildlife conservation and its role in the economic development of the continent and the communities in which it operates. African Parks has been granted the 2018 award for Outstanding Contribution to Conservation South Africa 2018.

AccessBank Tanzania — Best Social Development Bank | Tanzania 2018

Kuwait Finance and Investment Company (KFIC) — Best Sustainable Investment Partner | GCC 2018 KUWAIT Finance and Investment Company (KFIC) takes pride in the expansive financing services it offers, affording the institution the rare advantage of holding dual banking licenses. Among its shareholders are some of the most influential families in Kuwait, in addition to several local banks. The company has made great efforts to step-up its sustainability, establishing a dedicated “green team” to help reduce its carbon footprint. Points of pride include a sponsored initiative to help coral reefs bounce back, and new energy-efficient office spaces. The company is committed to gender equality — with females representing three out of seven employees, leadership positions included — and it has a zero-tolerance policy against racial discrimination. The BV judging panel salutes Kuwait Finance and Investment Company's corporate sustainability advancements, and pronounces it the 2018 winner of the Best Sustainable Investment Partner award (GCC).

Business Vision Winter 2018-19 Issue • www.bv.world

ACCESSBANK Tanzania is more than a commercial bank — it's a catalyst for socio-economic development. AccessBank believes that fintech can serve as a social equaliser, driving the digital transformation of the country and empowering a more connected and tech-savvy population. The bank's integrated mobile banking platform offers a range of services, from 24-hour account access and Masterpass QR transactions to money transfers and mobile phone credit top-ups. AccessBank invests in education as a force for upward economic and social mobility, and organises annual conferences, seminars, forums, and training sessions. AccessBank, founded in 2007, offers finance services for micro, small and medium-sized enterprises (MSMEs), as well as socially responsible banking services for Tanzania's low- to middle-income earners. For its inclusive banking approach and entrepreneurial empowerment, the BV judging panel names AccessBank Tanzania the 2018 Best Social Development Bank (Tanzania) award winner.

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Dubai Technologies — Most Innovative Fleet Management Solutions | MENA 2018

A HIGHLY functioning, productive society owes a great deal to its ability to efficiently move product and passengers. Dubai Technologies is a leading expert in the transport and service industry in the MENA (Middle East and Northern Africa) region. Its talented team harnesses the latest technological advances to ensure the most innovative fleet management solutions. One example of this innovation is its proprietary 360 IT Cloud, which oversees the seamless running of vehicle fleets. The R&D department is a vital part of the company's success, with researchers constantly exploring ways in which technology can improve lives through the simplification of processes and high security standards. The BV judging panel is delighted to present Dubai Technologies with the 2018 award for Most Innovative Fleet Management Solutions (MENA).

Sancta Capital Group - Best Alternative Investment Fund Manager | MENA 2018 ALTERNATIVE investment firm Sancta Capital Group has carved a niche market for itself by focusing on distressed and deep-value investment opportunities in the Middle East and Africa (MENA) region. The Sancta team encourages healthy debate and process-driven research that fosters critical thinking and allows it to nimbly react to changes in the business environment. Sancta thrives best in a bear market, where it can fully leverage its research expertise and sourcing capabilities to prove its worth. Investing in neglected or misunderstood securities across the corporate capital structure, the Dubai-based firm's flagship fund has generated for its investors annual returns of 15 percent net of all fees since 2011. Sancta operates to the highest international standards of corporate governance, further sealing the deal for the BV judging panel, which congratulates Sancta Capital Group on its 2018 Best Alternative Investment Fund Manager (MENA) award win.

Satellogic — Most Innovative Infrastructure Monitoring Services | Latin America 2018

SATELLOGIC has launched a constellation of small, inexpensive nano-satellites into space to deliver highresolution imagery and real-time data for public and private purchase back on Earth. Applications range from the monitoring of traffic flows and the tracking of natural disasters to optimising energy efficiency and increasing business intelligence. Several of the satellites are already in orbit, and Satellogic plans to launch another 60 by the end of 2018 – and another 300 within 10 years. The satellite network offers users customisable control over imagery targets, giving Satellogic a distinct advantage in the commercial satellite imaging market — which is expected to exceed $5bn in value. The BV judging panel congratulates Satellogic on its competitive market position, and on its win for the 2018 award for the Most Innovative Infrastructure Monitoring Services (Latin America).

Banco Ripley Peru — Best Commercial Bank | Peru 2018 THE commercial integration with the Ripley store and the orientation toward simplicity are the two basic elements of the business philosophy of Banco Ripley Peru. The bank has a client-centered business approach based on the applied feedback of users to drive the continuous improvement of their processes and their value offer, always building the goal of being a simple and familiar bank for the people. The bank performed a tech overhaul of its financial operations to offer a greater range of products and services. Users can use face-to-face channels in the Ripley retail stores to access financing for its products; cash loans and fixed deposits are among its most demanded products. Recently, Banco Ripley renewed its brand image upon the pillars of simplicity, closeness and transparency, attributes that identify the bank. This change responds to the substantial improvements in its external indicators such as reputation, profitability, market share and customer satisfaction. In the same way, obtaining the “Great Place to Work” qualification demonstrates a healthy work environment. The BV judging panel points to the bank's solid risk rating with credit rating agencies as an indicator of its financial strength, and gives Banco Ripley Peru the 2018 award as the Best Commercial Bank (Peru).

eDreams ODIGEO — Best Company to Work For | Europe 2018

Intesa Sanpaolo Bank Albania — Best Digital Bank | Balkans 2018

INTESA Sanpaolo Bank Albania embraces the digital evolution of the financial industry, and has put connectivity at the heart of its strategic vision. The bank is a subsidiary of the Intesa Sanpaolo Group, one of the largest banking networks in the Eurozone. The Intesa Sanpaolo Group has prioritised digital transformation, and its 2018-2021 Business Plan aims to invest around €2.8 bn in the sector over the next three years. The bank recently launched a multi-channel banking platform, with smartphones and fintech at its core. Biometric recognition technology simplifies and strengthens security, apps assist with investment management, and the mobile phone is replacing cash as king. Strict EU compliance and sustainable growth have pushed Intesa Sanpaolo Bank Albania to the top of the national market, and the BV judging panel declares it the winner of the 2018 award for the Best Digital Bank (Balkans).

Business Vision Winter 2018-19 Issue • www.bv.world

IT'S NO secret that eDreams ODIGEO — the parent company of leading travel brands Opodo, eDreams, Go Voyages, Travellink, and Liligo — is Europe's largest travel company and one of the largest e-commerce businesses. A good thing, then, that the company is also renowned for nurturing, and valuing, its workforce. eDreams ODIGEO has an excellent reputation as a global travel provider, serving more than 18.5 million customers annually in 43 markets — and the travel giant applies the same exacting standards of quality and service to its recruitment and retention strategies. New recruits enjoy a smooth onboarding process, and all staff can expect to be fully supported and well prepared as they carry out their duties. eDreams ODIGEO has modern offices and leisure facilities, with a flexible working schedule to encourage and facilitate a healthy work-life balance. The BV judging panel applauds the company's culture of collaboration and mutual respect, and — for the second consecutive year – names eDreams ODIGEO winner of the award for Best Company to Work For (Europe).

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TransferWise — Most Innovative Money Transfer Services | Europe 2018

WITH a dream that money might one day flow freely across borders, two Estonian friends founded TransferWise in 2011. TransferWise executive founder Kristo Käärmann and founder and CEO Taavet Hinrikus capitalised on their combined experiences in London's financial district and Estonia's outstanding start-ups to develop a simple money transfer solution. The company has opened 11 offices across four continents and employs over 1,300 people, all working towards the same goal: to facilitate money transfers at a fair, low-cost exchange rate, in a stress-free and safe manner – and at the fastest speeds possible. Over four million users trust TransferWise, globally moving around £3 bn in transfers each month and saving an estimated £80m in hidden charges. The company's list of top-tier investors — including Richard Branson and PayPal founders Max Levchin and Peter Thiel — further convinced the BV judging panel that TransferWise deserves the 2018 Most Innovative Money Transfer Services (Europe) award.

Jabal Omar Development Company — Most Visionary Real Estate Developer | Saudi Arabia 2018 JABAL Omar Development is leading the first-class regeneration scheme of the holy city of Makkah Al-Mukarramah — and the results are a dazzling combination of “the sacredness of place and spirituality of time”. The Saudi Arabian real estate development company manages a diverse portfolio of properties, including four five-star hotels and various residential projects, all of which are marked by the company's distinctive design, luxurious atmosphere, and superb service. Residents and visitors are invited to enjoy the top quality accommodation, and make use of the religious, social, and commercial facilities provided. The two million square-meter complex, on completion, will accommodate up to 36,000 hotel guests each year — and over 100,000 visitors during the Hajj (pilgrimage) season. The project's blend of tradition and innovation swayed the BV judging panel, which named Jabal Omar Development the winner of the 2018 award for the Most Visionary Real Estate Developer (Saudi Arabia).

Cielo — Best Payment Processing Solutions | Latin America 2018

FOR merchants looking to enter the Latin American retail market, a strategic partnership with Cielo could deliver new business opportunities across the continent. Cielo was founded in 1995 as a joint-venture between Visa International and three leading Brazilian banks to provide a common framework for paymentprocessing in the region. The company claims the title — by revenue and market value — of the largest Brazilian credit and debit card processor and the biggest payment system company in Latin America. Cielo processes $6.8bn in transactions each year through its network of point-of-sale, electronic fund transfer, and e-commerce device transactions. The company invests in advanced analytics to provide consumers — some 1.7m active users — with real-time promotions and relevant offers. The BV judging panel presents Cielo with the 2018 Best Payment Processing Solutions (Latin America) award.

Hershey — Best Supply Chain Modernisation | United States 2018

CONFECTIONERY giant Hershey Company has been in an investment mindset over the past few years, diversifying its product line-up through multiple acquisitions and exploring the digital sales frontier. Now the Pennsylvania chocolatier has invested $150m to enhance its supply chain capacity, and has begun to implement a new SAP ERP to support its retail partners as well as facilitate individual consumer sales online. The company aims to provide a holistic shopping experience, from e-commerce to in-store sales, working with retail partners to ensure identical offerings online and on location. For online purchases, Hershey now offers in-store pick-up, home-delivery, and an innovative chilled shipping service for worry-free summer shipment. The BV judging panel congratulates Hershey on its sweet success, and names the company the 2018 winner of the Best Supply Chain Modernisation (United States) award.

Netflix — Most Innovative Media Streaming Services | Global 2018

Agricultural Bank of China — Most Innovative Commercial Banking Services | China 2018

THE Agricultural Bank of China, founded in 2010 after one of the most successful IPOs in history, is one of the largest financial institutions in the world. The Chinese banking behemoth offers a wide range of professional services, including financial services, asset management, cross-border financial services, bespoke financial advice and consultation, and private value-added services. In addition to its personal and corporate services, the bank provides a range of products to support China's agricultural communities, such as microfinancing, revolving credit lines, and farmers' benefit credit cards. The BV judging panel congratulates the Agricultural Bank of China on its 2018 award win for the Most Innovative Commercial Banking Services (China).

Business Vision Winter 2018-19 Issue • www.bv.world

LONG-forgotten are the DVD-by-mail days of Netflix. The entertainment company is now best known for its binge-worthy streaming services. Founded in 1997, Netflix once offered movie rental subscription services throughout the US by post or online — but now its reach encompasses more than 130 million subscribers in 190 countries. Although Netflix's subscription strategy has remained steadfast, its journey has been marked by continuous innovation. Netflix has transformed itself into a production powerhouse, garnering a cult following and award recognition for its original series — rivaling Hollywood studios for feature film production in 2018. The company believes in the power of analytics, enabling it to offer intuitive data-backed entertainment suggestions as well to create content catering for niche interests and audiences. The BV judging panel applauds the company's vanguard vision and world expansion, and congratulates Netflix on its 2018 award for the Most Innovative Media Streaming Services.

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Hotel Du Cap Eden-Roc Antibes — Best Luxury Hotel Experience | Europe 2018

THE Hotel Du Cap Eden-Roc Antibes encapsulates the perfect blend of old-world glamour and modern luxury in the heart of the French Riviera. For generations, the Grande Dame of the Côte d'Azur has been the secret sanctuary of dignified and discriminate guests who require exclusive elegance and discreet hospitality. Private limousine shuttle service transports guests to the hotel grounds, where 33 cabanas are nestled along the seafront gardens and a heated infinity pool of natural sea water overlooks the Mediterranean. The luxurious accommodation includes 117 guest rooms and two private villas, world-renowned restaurants, modern fitness facilities, and relaxing spa services. The sumptuous style of the palatial hotel swayed the BV judges, who named Hotel Du Cap Eden-Roc Antibes — once again, following its 2016 win — as the 2018 winner of the Best Luxury Hotel Experience (Europe) award.

Electricidade de Moçambique — Best Sustainable Distribution Strategy | Southern Africa 2018 THERE is at least one monopoly that protects public interests and remains open to private sector participation: Electricidade de Moçambique (EDM). The utility company leads the country's revolution for sustainable energy solutions and strategies and has been lauded for its transparent and ethical operations. EDM aims to reduce poverty by providing universal energy access by the year 2030. The company has mobilised more than $1.2 bn in funding since 2015 to develop the country's energy infrastructure network, and the benchmarks detailed in its 2030 implementation strategy provide a clear roadmap to a more sustainable future. The company's philosophy of “investing in hope” resonated with the BV judging panel, which congratulates Electricidade de Moçambique on its 2018 award win for Best Sustainable Distribution Strategy (Southern Africa).

Eskan Bank Realty Income Trust — Best ShariaCompliant REIT | EMEA 2018

ATTRACTIVE returns, lower risk, diversified portfolio, and easy liquidity — these are the pillars that have kept Eskan Bank's Real Estate and Investment Trust (REIT) at the top of Islamic financial markets. REITs have been an emerging trend in the GCC (Gulf Cooperation Council) for the past decade, and Eskan Bank is one of the sector's pioneers in Bahrain. Eskan's REIT promises a steady, stable income for unit holders while keeping an eye on the long game. By pooling money to buy and manage real estate through the trust, investors can participate in large-scale commercial real estate development with limited initial capital. Eskan's REIT offers a low-risk solution with attractive dividends, as investment is spread over a diverse property portfolio of retail, residential and office space. Eskan is a Sharia-compliant REIT, fully respectful of Islamic laws. The BV judging panel presents Eskan Bank with the 2018 award for Best Sharia-Compliant REIT (EMEA).

Lloyds Bank — Best Personal Banking Services | UK 2018

LLOYDS Bank has operated for over 250 years with the goal of helping the UK and its residents prosper. Decades of successful mergers and acquisitions have helped Britain's Lloyds Bank grow from a single office in Birmingham to a national and international bank with more than 1,000 branches. The bank is a pioneer, launching the first ATM in the UK and contributing to the launch of one of the first UK credit cards. The bank pledges to go beyond business-as-usual to address the most pressing social and economic issues in Britain. In 2017, Lloyds Bank lent £13 bn to first-time home buyers, created 1,200 new apprenticeships, and supported more than 124,000 start-up businesses. It also raised £4.8m for Mental Health UK and supported more than 2,800 charities. The BV judging panel applauds the bank's history of strength, stability, and innovation, and congratulates Lloyds Bank on winning the 2018 award for Best Personal Banking Services (UK).

Cisco Systems — Best Digitalisation Acceleration Programme | Global 2018

Yogi Tea — Outstanding Environmental Protection Global | 2018

NOTHING soothes the soul — or the planet — quite like a warm cup of Yogi Tea. These tea recipes are based on the Indian philosophy of Ayurveda, and designed to promote well-being through the harmonious balance of mind, body, and spirit. The Yogi Tea brand has a strict “be good, do good” philosophy: it's been using organic methods of farming, treatment, and storage since the 1980s. The company is dedicated to minimising its carbon footprint, and powers its German and Italian facilities via renewable sources. Meanwhile, its new $21m US production facility is Leadership in Energy and Environmental Design (LEED) certified. The company's sustainability initiatives worldwide, particularly those focusing on environmental conservation and children's education, caught the attention of the BV judging panel, leading the judges to name Yogi Tea as winner of the 2018 Outstanding Environmental Protection (Global).

Business Vision Winter 2018-19 Issue • www.bv.world

TECHNOLOGY can transform a nation, and Cisco Systems has a blueprint to accelerate the process. Cisco — a world leader in digital networking and IoT innovation — is partnering with governments, industries, and academia to accelerate their national digitalisation agendas. Cisco has built its blueprint as interlocking pieces to a puzzle: the first step prioritises education and technology research, the second fosters innovation and entrepreneurship, while the third results in a knowledgable, competitive workforce. Cisco security battens down the country's new digital network, giving citizens secure access to services at the country, business, and personal level. Worldwide market penetration is well under way, and the programme is already active in 120 cities in 165 countries. The BV judging panel was impressed with Cisco Systems' visionary strategies, and congratulates the company on its 2018 award win for Best Digitalisation Acceleration Programme (Global). This is the second BV award for Cisco, which last year won Best IoT Connection Platform.

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Do dole payments really prolong unemployment? Google knows all, as researchers discover... Most of us have come to rely on Google to answer… well, pretty much anything. Now economists are thanking Google for helping to answer a thorny policy question. SCOTT R. BAKER, an associate professor of finance at the Kellogg School, investigated. FOR DECADES, policymakers have debated whether unemployment insurance provides a critical safety net during tough times, or prolongs joblessness by reducing people's incentive to find work. To answer this question, researchers need a clear measure of how much effort people are

actually making to search for jobs. And this activity has proven difficult to track. That's where Google's data on search traffic came in. Scott R. Baker and his collaborator, Andrey Fradkin, of Boston University, used data from Google Trends, the free site that analyses the popularity of

search queries across regions and languages. By tracking the word “jobs”, they were able to create a new system, which they dubbed the Google Job Search Index (GJSI). “We realised we could look at people's job-search habits in a way that traditional government datasets had a hard time doing,”

A critical safety net, or prolonging joblessness by reducing people’s incentive to find work?

Baker said. But pulling job-search data out of Google Trends is not as simple as, well, Googling it. Since Google keeps the exact volume of searches for any term confidential, Google Trends results represent only the relative frequency of Google searches, set on scale of 1 to 100. In order to estimate the raw numbers of job-related searches and ensure they were large enough to use as the basis of their study, Baker and Fradkin tapped other Google tools. Google's online advertising tool, Adwords, showed there were 68 million monthly searches for the term “jobs” in the year preceding April 2013, which was when they started the project. Having validated the heft of the dataset, the researchers started analysing it. They knew that the GJSI offered several advantages there. First, the most commonly used survey to track time spent job hunting is the American Time Use Survey, a report released once a year by the US Department

of Labour. Though painstakingly thorough, the survey — which interviews about 26,400 households via phone throughout the year — doesn't focus on outof-work individuals. As a result, it often contains fewer than five unemployed respondents from each state per month.

Big-data oomph lets policymakers drill down Google, meanwhile, provides real-time access to many millions of searches that can be aggregated across geographies. This big-data oomph lets policymakers drill down to measure changes in local labour market conditions. The search engine's ability to track searches for more specific

queries — “marketing jobs”, for instance — meant the researchers could use it to study how people are searching across sectors, regions, and employers. While other online platforms, such as CareerBuilder, offer proprietary data that can be useful, this information remains more difficult to access and smaller in volume than an open data source like Google Trends. But the GJSI's attractive qualities would not matter if the researchers could not prove the index was a true reflection of the volume of people looking for work. “We have this measure of how often people are searching for something containing the word ‘jobs', but does that actually say anything about how people are searching for jobs in the economy?” Baker asked. To find out, the researchers compared results against those of several other data sources. This included comScore, which tracks the web-browsing habits of 100,000 consenting Americans.

Business Vision Winter 2018-19 Issue • www.bv.world

Pulling job-search data out of Google Trends is not as simple as, well, Googling it.

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They found the GJSI to be a good proxy for overall online jobsearch effort. Moreover, benchmarking their results against those of the American Time Use Survey and other data, they found that Google job searches fluctuated in the same way as those reported in the survey, and that a higher unemployment rate corresponded to a higher GJSI. “That showed us the GJSI is telling us something important about the amount of time people are spending searching for jobs,” Baker says. With its significance validated, the GJSI could now be used to address a fundamental economic question – one that was hotly debated in the wake of the Great Recession. Do unemployment benefits present a moral hazard? Economists have argued over this since its inception during the Great Depression. “There's always a question in economic policy that boils down to the discussion of two competing forces,” Baker says. “One is the

There is a moral hazard story to be told here liquidity effect, which serves to make the unemployed better off by redistributing money to people at a time when they need it. The other is moral hazard. It's the idea that the more you support these programs, the more people will take advantage of them and not find new work. “There is a moral hazard story to be told here, but ... the aggregate effect seems to be relatively small.” After the recession, most states saw an increase in their unemployment benefits, from a maximum of 26 weeks to a maximum of 99 weeks. Did these more generous benefits deter people from working? Through the Texas Workforce

Commission, the researchers obtained detailed weekly records of the number of out-of-work Texans in each metropolitan area between 2005 and 2014, as well as the number of weeks of benefits people had left. They then compared weekly GJSI results for each of these metropolitan areas against the percentage of unemployed residents at each level of benefit. Their results reaffirmed earlier research showing that people search more for jobs when they have fewer weeks of benefits remaining. In areas where the average unemployed person had fewer than 10 weeks of unemployment insurance remaining, the index revealed 66 percent more search activity than in nearby regions where people averaged 10 to 20 weeks remaining — and a whopping 108 percent more than in metro areas where unemployed people had an average of 30 weeks left. “This makes sense: if you're getting close to the expiry of your unemployment benefits, you'd

‘If you’re getting close to the expiry of your unemployment benefits, you’ll feel more pressure’

* This story first appeared in Kellogg Insight.

‘NON-GEEK’ INTRODUCTION TO GOOGLE TRENDS By RICHARD THOMAS IN A NUTSHELL, Google Trends is a feature that shows how frequently a given search term is entered into Google's search engine, relative to other search terms or total search volume over a given period of time. The knowledge about what people are searching for, and how they are using Google — almost in real time — is largely of use to internet marketers. If you know what people are searching for, you can make sure those terms are on your site. That's the basic thrust of Search Engine Optimisation (SEO). But it is also a useful indicator of public interest in topics and events, something that journalists can make good use of. Often a news-worthy event will trigger a spike in popularity of a search term. Consider the following graph of the popularity of the search term “What is the EU” in the UK over the past five years.

The highest peak is the week that the UK held its referendum on whether to leave or remain in the EU, with popularity increasing in the weeks leading up to the vote. Rather worryingly, many were still asking Google for an answer to that question during the two weeks following the referendum. You might have seen the joke circulating about the PDF document being the world's fourth most-popular religion (type “How to convert to ” into Google and the autocomplete suggestions will almost certainly include both “Islam” and “PDF”, and possibly Christianity and Judaism as well). Like pop charts, these things fluctuate over time. At the time of writing, in December 2018, Christianity has fallen out of the chart and PDF has leapt to second place – behind Islam.

Business Vision Winter 2018-19 Issue • www.bv.world

feel more pressure to search for a job,” Baker says. The duo also crunched data across all American states, relying on the Current Population Survey, produced monthly by the Bureau of Labour Statistics, to track the duration of residents' unemployment benefits between 2008 and 2014. Then, by using the same method they used in Texas, the researchers found that every 10week extension reduced total search activity — by employed and unemployed Googlers — by only 1.5 to three percent. (After all, people with jobs sometimes look for a new one, too.) AGGREGATE EFFECT Translated, the findings mean “there is a moral hazard story to be told here, but we also show that the aggregate effect seems to be relatively small”, Baker explains. “If you're looking to compare how much the overall increase in joblessness [during the Great Recession] could be driven by the increase in unemployment benefits, the answer is: very little.” In addition to shedding light on this economics question, Baker says the value of the GJSI extends well beyond job-search tracking. In fact, since the research was published, other academics have cited it “who aren't looking at jobsearch data at all”. Instead, they are looking to use the same tool kit to develop other Google-based economic indices, including new ways to forecast consumer sentiment and economic uncertainty by tracking search terms such as “recession” and “bankruptcy”. “This approach can be really useful for policymakers, because it can be much more local and granular,” Baker notes, “and they can access it without a six-month or year-long lag.”

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Get on the road...

...with BV motoring

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Make it quick: three letters are all you need to turn a Merc into a Ferrari-beater ITALY is usually the first country to come up when conversation turns to the provenance of high-performance cars — think Maranello (Ferrari) and Bologna (Lamborghini). Stuttgart — where MercedesBenz parent company Daimler AG has its corporate headquarters — is likely to come further down the list — unless the name “Mercedes” includes the three magic letters AMG. AMG has been providing horsepower to the gentry since the 1960s. Germany — with such illustrious manufacturers as BMW, Porsche and Audi — is one of the world's luxury car heavyweights. Mercedes-Benz has

The GLC63 kicks out more than 500 horsepower

had competition close to home to inspire it to greater heights — heights which it has consistently hit. A 2019-model Mercedes AMG GLC63 S recently set a Nürburgring lap record, the fastest SUV ever to blaze around the 12.9-mile track. MercedesAMG Development engineer Markus Hofbauer drove the car at a blistering pace, trouncing the previous SUV record held the Alfa Romeo Stelvio Quadrifoglio by more than two seconds. The GLC63 is powered by a 4.0-liter twin-turbo V8, which kicks out more than 500 horsepower and gets power to all four wheels via a multi-clutch transmission.

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The first Mercedes to wear the AMG badge, the 1995 Mercedes C36 AMG

EurovisionNim / Wikimedia Commons There’s nothing like owning a “sleeper” vehicle to bring the occasional wicked smile to a driver’s face AMG in 1990 signed a farreaching cooperation agreement with Daimler which allowed the company to have its cars serviced by, and its custom parts distributed by, the Mercedes Benz dealer network. Four years later, Mercedes debuted its own AMG-badged car — the C36 AMG, with a 3.6L straight six producing close to 270 horsepower. Two years later, AMG was fully absorbed into Daimler and massive speed became a

feature and fixture of Mercedes Benz. The ongoing benefit, for those sufficiently cashed-up, is a range of outwardly “everyday” luxury roadsters that can carry families and even perform commuter duties — yet blow futuristic, hiphigh supercars into the weeds. And there's nothing like owning a “sleeper” vehicle — an MMA fighter disguised as a librarian — to bring the occasional wicked smile to a driver's face.

Business Vision Winter 2018-19 Issue • www.bv.world

Still mentally stuck in Italy, petrolheads? Hofbauer's lap in the GLC63 is quicker than times set by the Lamborghini Murcielago and the Ferrari F430 (as well as Mercedes' own SL65 AMG Black Series). AMG, a premier component of the Mercedes Benz line-up, started life as an engine tuning outfit set up in the small Baden-Württemberg village of Groẞapach. After the company was taken over by Daimler in 1996, its centre stayed in Baden-Württemberg, moving to Affalterbach. With low compression ratios and over-engineered mechanical parts, Mercedes engines have been a long-time favourite of tinkerers — professional or otherwise. Tuning enthusiasts Hans Werner Aufrecht (A) and Erhard Melcher (M), from Groẞapach (G), started taking Mercedes Benz engines apart and reassembling them to blueprint spec and beyond to extract every last pony of power. In 1965, racer Manfred Schiek agreed to give an AMG powerplant a spin — and won the next 10 races of the prestigious Deutsche Tourenwagen Meisterschaft competition. The AMG founders got another big break when Mercedes put its monstrous 6.8L V8 powerplant out to pasture.

The Nürburgring, where dreams are made — or dashed

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Petrolheads become E-heads as motor racing goes green By RICHARD THOMAS IN RECENT years, the spectacle of 24 Formula One racing cars screaming around a circuit for two hours, burning fuel and rubber in a howling haze of noise and pollution, has become something of an acquired taste. The carbon footprint of moving the cars, equipment, drivers, mechanics, managers and ancillary staff around the world every other week through the FI season is attracting increased criticism in environmentconscious times. Formula One (F1) is, and always has been, the pinnacle of four-wheeled motor sport. In 2011, Jean Todt, president of the FIA — the global governing body for motor sport — came up with the idea of a single-seater motor racing championship for electric cars. He envisioned a parallel category, to exist alongside F1, not replace it. September 2014 saw the inaugural race of Formula E (FE for the purposes of this feature). Unlike F1, which usually takes place on racing circuits, all the FE races take place on street circuits,

such as the famous Monaco route so beloved by F1 fans. For the first season, the cars were all identical, unlike F1, where each team designs and builds their own car, and the engine is either built inhouse or bought-in. In the second FE season, there were several manufacturers offering motors and transmission systems, but the cars, the tyres and the batteries were standardised items. With the 2018-19 season comes the introduction of a new “Gen2” car. Its top speed is 174mph — a significant improvement on the 140mph reached by the original car. This is a way off the speeds of F1, but it it's still impressive. The most notable difference with the new car is down to battery capacity. In previous seasons drivers had to come in to the pits mid-race and swap to a different car — batteries just couldn't go the distance. With the new set-up, that limitation has been eliminated, along with a slightly tedious aspect of electric racing for the fans. In environmental terms, FE has lived up to its early promise. An electric car in itself isn't necessarily

“carbon free”. It all depends on the source of the electricity used to charge the battery. But the real advantage of an electric car is that air pollution is moved from where the car is to where the power is generated — poignant, given that all the races are held in city centres. And if the power used comes from renewable sources — solar, hydro or wind — then the pollution has not just moved, it has been eliminated. Unlike F1, the tyres last the whole FE race — and they can be recycled afterwards. FE is working with battery manufacturers to find a solution to another question: what happens to the battery at the end of its life? They are repurposed where possible, recycled, or safely disposed-of. All aspects of the operation of the governing body, the teams and their partner organisations are assessed, and a sustainability report published every season. Perhaps the most unusual measure, made possible by the city-centre venues, is that spectators are encouraged to use public transport to get to events, with no public parking available.

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The 2018-19 season has seen the introduction of the Gen2 car, with a top speed of 174mph

FIA Formula E

Those who have spent many hours in traffic jams trying to enter (and leave) Silverstone or Montmeló will find this one of the strangest characteristics of the new formula. As well as “green” initiatives, such as renewable power and reduction of waste, social responsibility is central to the nascent sport. FE engages with the community in all its host cities, working with NGOs, schools, universities and local institutions. In their own words they “especially believe in the importance of young people's education as key to empowering them, with solutions to choose to live more sustainably in the future”. They have also started to implement the UN's Sustainable Development Goals. In July 2018, FE was the first category in motor sport to earn the ISO 20121 certification, the international standard for sustainable events. And in October, the FIA renewed FE's accreditation against its own Environmental Certification Framework. From the point of view of the manufacturers, F1 has always had two purposes. Firstly, as a

marketing tool. The sight of your company's logo televised flying across the finish line, or on the overalls of the drivers spraying the champagne, is worth millions to your sales figures. Secondly — and more of a long-term investment benefitting the whole industry

Electric vehicles are, without doubt, the way ahead — many of the technological advances in road-going cars have trickled down from motor sport. Clutchless manual transmissions, ceramic brakes, advanced aerodynamics, materials like carbon-fibre bodies — even the humble rear-view mirror — all came from motorsport. Most major car manufacturers are now developing electric cars, and technology to improve them will probably spring from their racing counterparts. Another

driving factor, if you will pardon the pun, is the recent announcement by the UK government of plans to ban the sale of new petrol and diesel vehicles — at least nonhybrid ones — by 2040. Electric vehicles are, without doubt, the way ahead. At FE's inception, diehard racing fans greeted the new class with incredulity, never believing that an electric car could replace their beloved F1 chargers. Some pundits suggested that it would be akin to racing milk floats. But with drivers like Brazilian F1 veteran Felipe Massa going electric, are the two classes now heading for equality? Massa joins other ex-F1 drivers lining up on the FE grid for this season — including some star names who should entice a following of fans to the newer formula. As Massa recently told BBC Sport, “I think what makes things interesting in FE, and I really hope it happens with me, is that many drivers are able to win the race.” No more domination of the sport by one driver, like Schumacher, Häkkinen or Vettel? Count us in!

Business Vision Winter 2018-19 Issue • www.bv.world

FE investor and ex-F1 World Champion Nico Rosberg was the first driver to test the Gen2 car in public

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Crobba-crobba crotch rocket takes performance to new (possibly ridiculous) levels By HAL WILLIAMS DUCATI, the Italian motorcycle manufacturer known for its raucous and racy V-twins, has taken a new tack with the Panigale V4 R, a 998cc, four-cylinder machine that can flatten your eyeballs with the twist of the wrist. With a claimed 221 horsepower and a weight of just under 190kg — in street-legal spec — this is a bike created to be a WSB contender — straight out of the box. The engine is a development of the unit that powers the Ducati Desmosedici GP racer. The original Panigale V4 unit was de-stroked, keeping same bore. Titanium connecting rods are used to keep everything together in an engine that can be pushed to a heady 16,000 rpm. The Panigale V4 R unit

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It conforms to Euro 4 emission standards generates 221 hp at 15,250 rpm — and yet it conforms to Euro 4 emission standards. Fit the optional Akrapovic exhaust system, and power climbs to an unreasonable but inspiring 234 hp. In street-legal trim the V4 R offers peak torque at 11,500 rpm, 3,750 rpm below peak power. The red beastie inhales and exhales gas via 34mm titanium inlet valves and 27.5mm steel exhaust valves, while fuelling is

delivered through 56mm oval throttle bodies. That V-4 powerplant is held in place by the same front frame structure developed for the Panigale V4 S, machined to reduce weight. The road-racer has conventional Öhlins suspension: a gas-charged, titanium-nitridecoated 43mm fork with fully adjustable separate functions for each leg. At the back is an Öhlins TTX 36 shock. Trimming the flab, and easing the work in the bouncy-bouncy department, are forged aluminium wheels. Ducati's electronic wizardry includes cornering ABS EVO, Ducati Traction Control (DTC) EVO, Ducati Slide Control (DSC), Ducati Wheelie Control (DWC) EVO, Ducati Power Launch (DPL), Ducati Quick Shift (DQS) EVO, and Engine Brake Control

This is a bike created to be a WSB contender — straight out of the box

A stunner as well as a runner, the Duke’s muscular presence will ensure it’s noticed cooling, with more air passing through the radiator. Braking is handled by Brembo Stylema front radial-mounted fourpiston calipers. An aero package features a taller windscreen and downforce-producing winglets. Do we need to mention that it's beautiful? The fairing includes downforce-generating wings that produce downforce to keep the

front wheel on the road — and it sure is pretty. The fuel tank is aluminium. And why not? Throw the cat another canary: all the stops have been pulled out on this beauty. We here at BV are betting that even in Street mode this one is, er, intimidating. Can we have one for a roadtest, please…? Business Vision Winter 2018-19 Issue • www.bv.world

(EBC) EVO. Make sure you hit the right button. Three pre-set ride modes are provided: Race, Sport, and Street. Instrumentation is the same as on the Panigale V4, with a few new functions, including a new Pit Limiter function and a Lap Timer GPS featuring segment time, rpm, speed, and lean and yaw angles. Redesigned side vents increase

Six letters that promise two-wheeled excitement: D-U-C-A-T-I

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.W O R L D

Robotic back-seat driver bid meets opposition from Acea A EUROPEAN Union safety technology proposal which could theoretically save lives is being fought by car industry lobbyists, according to news reports. The European Automobile Manufacturers Association (Acea) opposes a bid to bring in ISA (Intelligent Speed Assistance) technology that automatically reduces car speeds to road limits. Acea instead favours another acronym – SLI (Speed Limit Information) – which merely sends drivers a dashboard warning that the limit has been exceeded. ISA can be fitted with a speed limiting function, which requires increased pressure on the accelerator to exceed the posted speed limit – making it harder to accelerate. It determines the location of

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‘Lives could be saved with the tougher of the ISA controls’ the car through GPS technology and navigation, and cross references a digital map with speed limit information for each road. The technology can physically prevent the driver from exceeding the posted speed limit by reducing the throttle signal going to the car's computer. Acea terms SLI an “effective alternative” in its lobby material, according to a report in Britain's

The Guardian newspaper. Amendments to proposals before the EU are now being proposed by three MEPs. Industry observers have labelled the opposition move “worrying”, and say lives could be saved with the tougher of the ISA controls. Acea's website claims that “ISA technology holds promise for the future” but acknowledges that many motorists will not accept the Big Brother intervention. ISA is already fitted to some Ford cars, according to the report, but it can be manually overridden. ISA is one of 16 safety measures in the EU general safety regulation aimed at cutting road deaths by 25,000 – one year's death toll at present – over a 15-year period.

The technology can physically prevent the driver from exceeding the posted speed limit

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