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T H E

M A G A Z I N E

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A N G L O - F R E N C H

FRENCH CHAMBER OF GREAT BRITAIN  www.frenchchamber.co.uk

B U S I N E S S

NOVEMBER / DECEMBER 2016

DISRUPT OR BE

IN THIS ISSUE: Interview: EDF Energy CEO Vincent de Rivaz CBE on Hinkley Point C approval Five minutes with Stéphane Le Guével, Director General, PSA Group UK Interviews: Axelle Lemaire, French Minister of State for Innovation and Digital Affairs and The Rt Hon Matthew Hancock, British Minister of State for Digital and Culture Comment: Economist Vicky Pryce on Brexit’s business challenges


Ideas Action Strategy& is a team of practical strategists working with clients to address their most important challenges and turn ideas into action. We are part of the PwC network.

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EDITORIAL

Estelle Brachlianoff President, French Chamber of Great Britain Senior Executive Vice President of Veolia UK & Ireland

D

isruption is often confused with innovation, but these are two very different concepts. In a business context, the latter means evolving your products and services to continue to meet your customers' needs, while disruption means fundamentally changing the way that your industry works, introducing new products, a new customer base, and thus creating new markets. The key theme of this issue of INFO is ‘Disrupt or Be Disrupted’, which is also the theme of this year’s

Franco-British Conference, on 21 November, at One Great George Street in London. Businesses face unprecedented challenges from fast-growing companies that are able to leverage technology to disrupt existing business models. Incumbents face a choice: they must embrace disruption themselves and lead the charge, or face being disrupted themselves – with potentially negative consequences. In this issue’s Focus (starting on page 25), we offer you insight from some of the top disruptive minds in business today, such as Vivendi CEO Arnaud de Puyfontaine and many others. We are also delighted to feature interviews with the French Minister of State for Innovation and Digital Affairs, Axelle Lemaire, and the UK Minister of State for Digital and Culture, Matthew Hancock, who are both responsible for tackling digital disruption at the governmental level. One of the biggest disruptions that both government and businesses face today is Brexit which, throughout the autumn, has remained front of mind for French Chamber members. Through our Forums and Clubs, we have dissected the impact of Brexit across a range of areas: HR, legal, finance and more. You can read our reports on these from page 64 onwards. As this is one of the biggest issues that businesses in the UK will face in a generation, we will continue to keep Brexit on the agenda as we move into 2017 and beyond. From the creation of a dedicated Brexit Forum early next year to ongoing regular updates and advice, the Chamber aspires to be your go-to-place for information, benchmarking and lobbying. For now, I hope that you enjoy this issue of INFO and that it gives you valuable food for thought. I

info

- november / december 2016 - 5


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OR BE

25

49

64

29

40

28 BUSINE S S WOR LD

LIFE S T YLE

8 10 13 16 19 20 22 23

49 53 55 56 57

Interview: EDF Energy CEO Vincent de Rivaz Five minutes with... Stéphane Le Guével, Director General, PSA Group UK News and analysis Brexit: Analysis and look ahead Start-up story Teads: Transforming the way that publishers and advertisers use video online Start-up and SME news Education news Reports and research

CONTENTS

34

43

DISRUPT

Exhibitions and events Book reviews Travelogue Weekend in Edinburgh Eat, drink, stay Cheese and wine

AT THE CHAMBE R

59 Introduction by Florence Gomez 60 French Chamber news 61 New members

Editor: Jason Hesse Graphic designer: Katherine Millet Editorial assistant: Mwengesyali Syauswa Sales Manager: Suzanne Lycett

FORUMS & CLUBS FOCUS | DI SRUP T OR BE DI SRUP TE D

25 Introduction by Jason Hesse 26 Infographic: Disruption in numbers 28 Interview Axelle Lemaire, French Minister of State for Innovation and Digital Affairs 29 Interview Matthew Hancock, British Minister of State for Digital and Culture 30 Reacting to disruption Vivendi, Schneider Electric and AXA 32 Disruption: Fad or threat? ESCP Europe 33 The opportunity to innovate HSBC Bank 34 Leading the field Dassault Systèmes 35 Scaling for disruptive success what3words 36 Investing in disruption: risk or opportunity? AngelsCube 37 Seven models to build a disruptor EDHEC 39 Full throttle Microsoft Startup Growth Partners 40 Technology provides the power to disrupt The Disruptive Group and Aviva 43 Disrupting regulation Sherrards Solicitors 44 Change is the only constant PwC Strategy& 46 When the disruptors are disrupted Pinsent Masons

64 65 66 67 68 68

Economic Update Brexit: What is next? Finance Forum Brexit negotiations need transparency Legal Forum EU law: Brexit to pose huge challenges Climate Change Forum What is the science behind climate change? HR Forum Employers must start Brexit planning now Forthcoming Forums & Clubs

Contributors: Pierre-Olivier Bligny, Yann Bonduelle, Estelle Brachlianoff, David Cather, Joaee Chew, Eric Charriaux, Christophe Chazot, Alexandre Covello, Ian Ellis, Geraldine Fabre, Karin Kollenz-Quétard, Thibault Lavergne, Diane Mullenex, Huy Nguyen Trieu, Vicky Pryce, Chris Sheldrick, Sudeshna Sen, Davide Sola, John Stokoe, Annabelle Richard

Advertise in INFO: Please call our sales team on +44 (0)207 092 6651. Alternatively, please email: advertising@ccfgb.co.uk

CHAMBER EVENTS

70 71 72 73 74 75

Event highlights Dîner des Chefs at Belmond Le Manoir aux Quat'Saisons; Rendez-vous chez Le Vieux Comptoir; Cocktail reception at Maison Assouline; Rendez-vous chez The Rembrandt Trade delegation to Liverpool Breakfast with Estelle Brachlianoff Ryder Cup 2018: Coming to France Luxury Dinner 2016 Forthcoming Events

INFO is published every two months Printed by: CPI Colour Distribution: French Chamber members, Franco-British decision makers, Business Class lounges of Eurostar, Eurotunnel and Air France in London, Paris and Manchester

INFO is published by: French Chamber of Great Britain Lincoln House, 300 High Holborn London WC1V 7JH Tel: (020) 7092 6600 Fax: (020) 7092 6601 www.frenchchamber.co.uk Managing Director: Florence Gomez Head of Corporate Communications: Marielle Fraize

info

- november / december 2016 - 7


The man behind Britain’s nuclear revival Vincent de Rivaz CBE, CEO, EDF Energy Vincent de Rivaz speaking at a Hinkley Point C rally event in October 2016

F

our British Prime Ministers and nine UK Energy Secretaries.

‘Building credibility was one of my objectives, so being

Three French Presidents and four French Prime Ministers.

present in the UK over a longer period has allowed me to build

Four Chairmen of EDF. The rolodex of leaders that Vincent

up my credibility as a leader,’ he explains. ‘Too many companies

de Rivaz has had to work with over the last decade, to secure

see their CEOs change every three years – this means they

approval of the £18bn Hinkley Point C project, is impressive.

come with words, whereas we’ve been able to deliver deeds.’

This is not the story of Hinkley Point C, but the story of

This credibility, he believes, has been the key to getting

how the 63-year-old Savoyard CEO of EDF Energy established

Britain’s first new nuclear power plant in a generation approved.

himself as a champion of nuclear power in Britain.

Working with successive governments over the last decade, he

BEGINNINGS

has worked hard to establish a partnership. For example, Rivaz shares that he first started a working

When Vincent de Rivaz became CEO of EDF Energy in 2003,

relationship with the current Secretary of State for Business,

nuclear was not on the table. The company entered the UK

Energy and Industrial Strategy, Greg Clark, back in 2008, when

through the acquisition of several energy distribution businesses

he was Shadow Energy Minister. ‘This summer, the fact that I

and two coal-fired power stations. ‘The UK Government

already had a relationship with him for nearly a decade helped

published an energy whitepaper in 2003, which was the nail in

me immediately when he was appointed,’ he says. ‘Since 2008,

the coffin for new nuclear,’ he explains. ‘Renewables and energy

he has seen EDF Energy's credibility strengthened year after

efficiency were seen as the future at the time.’

year, supported by the strong performance of the existing

A combination of macroeconomic factors changed this over

nuclear fleet since the acquisition.’

subsequent years. First, there was the ‘Geopolitical’ factor, as

These relationships – between Vincent de Rivaz and

Rivaz calls it: in 2005, Russia cut gas supplies to Ukraine over

ministers, between EDF Energy and the UK Government – have

a dispute, which led to worries of energy shortages across

developed into a partnership over time, and together they

Western Europe and, crucially, at the end of the pipes in the UK.

developed a common goal to make Hinkley Point possible. This,

Next, the ‘Stern' factor: a 700-page report on climate

says Rivaz, is how to do business.

change published by climate expert and economist Nicholas

One example is the negotiation of the Contract for

Stern in 2006, which made the case for a de-carbonised

Difference and its ‘strike price’, critical to the Hinkley Point C

economy. And finally, what Rivaz terms the ‘Bills’ factor: by 2008,

project. This supporting mechanism provides revenue certainty

the price of electricity was as high as £80 per megawatt-hour

through a fixed price agreed with the Government – it is a two-

due to volatility in the gas markets. This combination created

way contract, where the energy generator receives or pays back

a favourable context to review the case for nuclear power. By

the difference between the ‘strike price’ and the market price.

2006, Tony Blair, then Prime Minister, announced that nuclear would come back ‘with a vengeance’. Throughout this time, Rivaz had started working on Britain’s nuclear revival: he sensed the opportunity. When British Energy’s key assets – the UK’s eight nuclear power plants – came up for sale in 2008, EDF acquired them for £12.4bn. ‘This gave

‘Of course, our starting points were not the same,’ he admits. ‘But it was a mature, respectful and honest negotiation. None of the parties applied undue pressure on the negotiation through misuse of the media or lobbying tactics.’

HURDLES

us access to the people, skills and relationships we needed to

The negotiations with the UK Government were far from

enter the UK nuclear market properly,’ says Rivaz. ‘It gave us

being the last hurdle to getting the project over the line,

the credentials to be a responsible nuclear operator in Britain.’

however. Rivaz rattles off the long list of milestones in the

‘CREDERE’

Hinkley Point C story so far: there was the approval from the Office for Nuclear Regulation, obtaining the planning consent,

The theme of credibility is very important to Vincent de Rivaz.

approval of the contract for difference, approval from the

He explains the Latin origins of the word: credere, which means

European Union, the contract with EDF's Chinese partner CGN,

‘to believe’, ‘to place one’s heart’, and pairs it with consistency,

gaining support from the unions, getting sign off from the EDF

where a business can be trusted and relied upon.

board, and, finally, re-approval by Theresa May's government.

8 - info - november / december 2016


P R O F I L E V I N C E N T D E R I VA Z

Too many companies see their CEOs change every three years - this means they come with words, whereas we've been able to deliver deeds ALIGNING PLANETS

‘It has been a formidable battle – but in a good sense. We’ve been through many hurdles, but each time, the project cleared

At the end of the day, Rivaz says that his job has been to

each and every one. This is a project that has passed all of the

align ‘planets’: London, Paris, Brussels, Beijing. ‘Sometimes two

tests... once, twice, three times, four times,’ he explains.

of these planets were perfectly aligned, but the third or fourth

‘It has been examined from all of the possible angles, so it

were not. Then they would move around again,’ he explains. ‘I’ve

isn’t by chance that we’ve overcome each hurdle: it means the

had the privilege to be at the centre of these planets to align

project is right.’

them and provide the skills required to enable the alignment.’ Speaking to Rivaz, it is clear that he excels in the skills of

THE MAY GOVERNMENT

patience, diplomacy, project management and leadership.

Vincent de Rivaz says that he was not shaken by Theresa

Rivaz is adamant, however, that his role was simply that of

May’s decision to re-examine the project when she became

a leader – he says that the real credit should go to his team.

Prime Minister this summer. ‘To be honest, I understood

‘This was not an individual adventure – it was a collective

the rationale. The new government had to take ownership

adventure. I have such a huge debt to everyone who has

of the decision,’ he explains. ‘It was much better that the

worked on this for years.’

new government took a few extra weeks to conduct another

But, he warns, this is just the beginning: ‘The success of

thorough review and come to its own conclusion. After all, it’s a

Hinkley Point C will not be delivered by me, but by those who

decision that will matter for decades to come.’

are going to build it over the next ten years, and operate it over

He remained confident about the project and open to any

the following next 60.’

questions, and wrote a letter to EDF Energy staff to reassure

What effect might Brexit have on this? Rivaz remains

them, explaining why the new government’s review was

diplomatic: ‘I’m certainly going to engage with the Government

necessary. ‘It wasn’t the time to lose patience or show any

and Brussels. We are responsible for the largest construction

anxiety,’ he says. ‘I just had to think that, for this last hurdle, it

project in Europe, right here in Britain.

would lead to the same conclusion as the others.’

‘There are a lot of implications, so I hope to have the

Finally, at two minutes to midnight on 14 September, the

opportunity to give a constructive viewpoint on this issue.

day before Parliament went into recess, he got the call: Hinkley

Nuclear has a great future, and this project opens up

Point C would get the go-ahead.

opportunities beyond Britain. The world is watching us.’ I JH

HINKLEY POINT C TIMELINE 2003

Energy whitepaper declares that future energy

2013

Planning consent is obtained (March); UK

will be without nuclear

Government agrees contract with EDF (October)

2006

Tony Blair announces energy review where

2014

Preparatory construction works begin (May); EU

nuclear could be included

approves the contract (October)

2007

EDF Energy announces its new nuclear plans for

2015

EDF signs a deal with Chinese firm CGN, which

the UK

will provide one-third of the £18bn cost and

share in future projects at Sizewell and Bradwell

2016

EDF Board of Directors reviews EDF Group’s long-

term financial trajectory enabling the funding of

Hinkley Point C (April) and finally approves project

(July); UK government announces new review

2009

EDF Energy takes over British Energy and its 15

existing nuclear reactors

2010

Hinkley Point site gets declared eligible for

nuclear new build

2012

EPR nuclear technology gets approval from

(July) and finally approves project (September); all

Office for Nuclear Regulation

the contracts are signed (September)

info

- november / december 2016 - 9


Five minutes with...

Stéphane Le Guével Director General, PSA GROUP UK

What does your day-to-day job involve? I've been in charge of the three PSA Group brands – Peugeot, Citroën and DS – in the UK since January 2015. From the

good image in the UK and is seen as innovative and different. The Peugeot brand is high-end generalist, and customers recognise it as having uncompromising quality, sharp design

promotion of our brands through to overseeing car sales

and an instinctive driving experience that is aimed at a more

and part sales targets, my role is to constantly develop

high-end client. This is one of the benefits of working for a

PSA Group in the UK both in terms of market share and

French brand. France has a long history of luxury, and this

customer satisfaction.

helps to differentiate us from German car brands, which tend

There is no typical day for me, as no one day looks like

to focus more on technology as their USP. So we are able

another. However, most of my meetings are about defining the

to bring something around the idea of French luxury, which

company’s strategy, looking at our brand positioning, strategic

British customers are hungry for. This is where our DS brand

objectives and our dealer network transformation plans.

sits, at the top end of the market, attracting people who are

Managing human resources is also an important part of the

interested in a premium car that reflects pure French luxury.

role, to make sure that the right people are in the right place.

The DS customers are acutely aware of how luxury products

I have three brand directors who report to me (one for each

are made, so our DS cars include the best-quality handmade

of the core brands) plus a fourth operational director, who is

leather and premium finishes.

responsible for spare part sales. On top of that, I also work closely with our support functions, such as B2B, HR, finance,

Following the EU Referendum, PSA Group re-evaluated its

network development, supply, PR and more.

prices upward in the UK. How do you expect Brexit will affect the company in the longer term?

Where does the UK market sit in PSA Group?

As a whole, we’re on track to sell more than three million cars

The UK is our second-largest market in Europe, which makes

this year, and since the EU Referendum result in June, we

it hugely important to the group. Additionally, it is also

haven't witnessed a significant decrease in demand for our

the second-largest market across the whole world for our

cars. Yes, the retail market is showing signs of a slow down,

premium brand DS. The UK business does not stand alone,

but the automotive sector itself remains strong.

however – we work closely with the Europe Business Unit of

Next year, we do expect a small dip in the market, but

PSA Group, and this is where I report my commercial targets.

this should be limited to 5 to 8 per cent. The UK remains and

These are composed of three key measures: car sales, part

will remain as a very important, key market for PSA Group

sales and customer satisfaction.

and there is no reason why we would consider the UK any differently because of Brexit. We will continue to launch our

What does a ‘typical’ customer look like?

products in the UK, and our ambitions to grow UK market

Generally, in a market such as the UK, people have a very

share haven’t changed. At the end of this year, we expect PSA

simple way of considering brands, depending on their origins.

Group’s market share to be 8.5 per cent in the UK, and next

Each country has its own clichés, whether it’s a German brand,

year, I expect it to grow to 9 per cent. Further, my expectation

Korean brand, Japanese brand or French brand. Therefore an

is to reach between 10 and 12 per cent of UK car sales.

important part of my job is to ensure that people understand what each of the PSA Group brands stands for. Each one targets a different segment of the population.

When it comes down to price, yes, we have increased our prices, but so have our competitors. Our intention is to remain at the heart of the competitive environment, and we

Citroën targets the mainstream, general population with the

are monitoring our price position as much and as precisely

idea to ‘be different and feel good’. This brand already has a

as we can. The reality is that we need to be agile and react

10 - info - november / december 2016


FIVE MINUTES WITH... S TEPHANE LE GUE VEL

as quickly as we can to the market, and a key element of this

account for 90 per cent of sales, which is huge. The UK is a

is to position ourselves against competitors to find the right

leader in this because the British consumer is miles ahead of

balance between price and market share. We will not chase

other Europeans in terms of their ownership mentality. You

market share at any cost.

see it not just in cars, but with other products too, such as mobile phones, online music and video streaming, etc.

What is PSA Group doing to differentiate itself?

As a result, the trend is pushing car companies to do

Two elements come to mind: our cars and our service. We’re

more to protect their vehicles' residual values – i.e. how much

already the leader in terms of CO2 emissions in Europe. Our

a car is worth at the end. By having a high resale value, the

PureTech petrol engine is the best and our HDi diesel engine

monthly rental is able to be better positioned, giving brands

is also the market leader.

a competitive advantage. It’s a model that is good for us,

Hybrid and electric cars will play a big role in our future,

because we don't just want to grow our market share, but also

too. By 2021, we plan to have seven plug-in hybrid vehicles

create customer loyalty. With this using-rather-than-owning

and four new fully-electric vehicles. Autonomous vehicles are

model, provided that you deliver the right level of service and

also very exciting – they are the future of automobiles and

people are happy with their cars; your brand can retain its

will be a part of our future, alongside electric vehicles and

customers over the longer term.

alternative energy.

When it comes down to price, yes, we have increased our prices, but so have our competitors But innovation is also about the services that we provide.

What are your priorities for 2017?

We recently launched a new brand, Distrigo, which focuses

My first priority is to reach 9 per cent market share across

on the parts distribution for all brands – not just PSA Group

the group. Then, I would like to carry on differentiating our

vehicles, but all makes – and we're building up that network

three brands among the British public, so that each brand

further. We've also taken some big steps in telematics and

is understood and perceived clearly – we need people to

mobility, through our partnership with Masternaut and the

understand what Peugeot, Citroën and DS stand for. Third,

creation of our mobility brand, Free2Move. So we're not only

I would like to continue to improve the dealer network by

investing in car innovation, but also in the services we provide.

increasing efficiency and customer satisfaction. Finally, as a

These are the two key pillars of PSA Group.

consequence of the brand building we are undertaking and through our commercial policy, I want to make sure that we

The auto industry was rocked, last year, by the emissions

continue to protect our residual values and therefore create

scandal. How has this affected you?

long-term value for our brands.

We weren’t specifically affected by it, but what I can say is that the whole market is now shifting from diesel to petrol engines,

How does PSA Group benefit from being a member of the

including us. This shift has been especially noticeable in the ‘A’

French Chamber?

vehicle segment, which is composed of smaller cars, such as

Being a Patron Member is a fantastic opportunity for PSA

the Citroën C1 or Peugeot 108, where customers are looking

Group to share and learn from the experiences of other

to economise on running costs.

French companies. Even if we come from different business

Saying that, the image of petrol has changed a lot in recent

sectors or industries, or offer different kinds of services, it's still

years, and our petrol engines are already very economical

important to share our experiences of the British market, to

and CO2 friendly, as well as being pleasant to drive. The

ensure we all succeed as best as we can. I Interview by JH

combination of these three factors means that driving with a petrol engine is a much better experience than it used to be. There is a shift in the UK towards no longer owning your own vehicle. How is this impacting PSA Group? The British market is strongly geared towards renting rather than buying your car, and this is a growing trend in Europe too.

PSA GROUP FACTS AND FIGURES • Global employees: 184,000 • UK employees: 2,400

It’s all about usage rather than ownership. Rather than buying

• Global sales: nearly three million vehicles in 2015

your car outright, you pay a monthly fee for it, and often this

• UK sales: 257,383 vehicles (14% of EU sales)

can include insurance and maintenance as well. It’s a worryfree, all-inclusive way of buying a car. We've seen this market shift across all of the markets in

• Market position: PSA Group is the second- largest vehicle manufacturer in Europe

which we are present – indeed, in some segments, these deals

info

- november / december 2016 - 11


Proud to be the UK’s largest producer of low carbon electricity Feel better energy To find out more about our low carbon nuclear generation visit www.edfenergy.com/energyfuture. Character under licence from BeatBots LLC. EDF Energy plc, registered number 2366852, registered office: 40 Grosvenor Place, London, SW1X 7EN. Incorporated in England & Wales.


NEWS

A ND

A N A LY S I S

Green light for EDF Energy’s Hinkley Point C After 10 years of negotiations, EDF Energy has signed an £18bn contract with the UK Government, relaunching new nuclear construction in the UK and Europe EDF Energy can now begin the construction of two ‘EPR’

across the world, and our teams are determined to make it

reactors in Somerset which, once built, will provide 7 per

a success,’ said Bernard Fontana, CEO Of AREVA NP. ‘‘This is

cent of the UK’s electricity needs. EPR reactors use the latest

further proof of the credibility of the French offering on the

technology in nuclear energy.

international market.’

Approval of the nuclear project was put on hold this summer, after the new UK Prime Minister, Theresa May,

Challenges

announced that she wanted additional time to scrutinise it.

The approval of Hinkley Point C is good news for French and

Finally, in September, the government gave its assent, and

British industry, but at the heart of its success will be its

the contracts were signed on 29 September by Business

ability to be delivered on time and on budget.

Secretary Greg Clark, EDF Group Chairman and CEO Jean

Currently there are four EPR units being built across the

Bernard-Levy and CGN Chairman He Yu, whose company is a

world – one in France, another in Finland and two in China.

key partner in financing and delivering the project.

All of these are facing costly construction delays. EDF itself

Receiving the go-ahead for Hinkley Point C is not just

has acknowledged difficulties in building the EPR design, but a new model, which will be easier and cheaper to build, will

Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear power stations like Hinkley play an important part in ensuring our future lowcarbon energy security –Greg Clark, UK Business Secretary

ensure that Hinkley Point C will be ready by the expected

good news for EDF Energy; it benefits a much wider supply

Read INFO’s interview with EDF Energy CEO Vincent de Rivaz on page 8.

date of 2025, the company assures.l ‘The construction of Hinkley Point C marks a whole new phase for EDF Energy, as it does for the British nuclear industry and for the regional economy of the South West,’ said EDF Energy CEO Vincent de Rivaz, who led the negotiations with the UK Government. ‘This will kickstart Britain’s nuclear revival.’ I

chain, including companies in both France and the UK. EDF expects that 64 per cent of the project’s value will be spent in the UK. AREVA, the nuclear energy firm, has already been awarded contracts worth €5bn to deliver key elements for the reactors, including the uranium and other materials needed for the fuel fabrication. And GE’s Steam Power Systems has been awarded a $1.9bn contract to supply two conventional power islands, including steam turbines, generators and other critical equipment. ‘Hinkley Point C will benefit from experience gained from the four EPR reactors currently under construction

Hinkley Point C in numbers

7%: of the UK’s electrity will be produced by Hinkley Point 5.8m: Number of homes it will power £18bn: Estimated construction cost 25,000: Total number of jobs that will be created 1995: Last time the UK opened a new nuclear power station

info

- november / december 2016 - 13


Deloitte launches 5,000-person ‘Apple’ unit Deloitte has announced a partnership with Apple to ‘accelerate

transformation on iPhone and iPad’. Together, they are developing a new service offering called EnterpriseNext. The 5,000-adviser practice will focus on helping clients to better use Apple mobile devices in the workplace, with a specific focus on retail, field services, recruiting, R&D, inventory and back-office management. ‘We know that iOS is the best mobile platform for business because we’ve experienced the benefit ourselves, with over 100,000 iOS devices in use by Deloitte’s workforce, running 75 custom apps,’ said Punit Renjen, Deloitte’s Global CEO. While Deloitte’s proposition focuses on mobile devices, Apple has also been making inroads in the corporate desktop computer market. Apple has historically been perceived by business leaders as more of a ‘consumer’ product, with corporate PCs ruling the roost. But the tide is changing: research by market intelligence firm IDC shows that Mac sales to companies with 500 employees or larger grew to 1.2 million in 2015, up from around 515,000 units sold in 2010. I PCS (DESKTOP AND NOTEBOOK) BY OPERATING SYSTEM (IN MILLIONS OF UNITS)

2010 2011 2012 2013 2014 2015

WINDOWS

31.40 36.48 36.44 36.89 38.30 35.46

OTHERS

0.25 0.29 0.45 0.51 0.61 0.56

APPLE OS

0.51 0.75 0.71 0.85 0.94 1.16

Veolia £1bn project with Hertfordshire County Council Veolia’s £1bn, 30-year contract with Hertfordshire Council will see the construction of a new energy recovery facility that uses residual waste. Once built, the £270m facility will process 350,000 tonnes of ‘black bin’ waste per year to generate 33MW of electricity – this is enough to power 69,000 homes. ‘This solution will not only maximise landfill diversion, but it also represents a source of low-carbon energy,’ said Estelle Brachlianoff, Senior Executive Vice President Veolia UK and Ireland. The Rye House project, 20 miles north of London, is a significant investment by Veolia in the UK. It will create more than 300 jobs during construction and 40 permanent jobs once the facility is operational. Subject to planning permission, the construction work of the energy recovery facility will start in 2017, and will be operational in 2020. Veolia is the UK market leader in waste-fuelled power. The company already operates a 35MW plant in south-east London which, using 420,000 tonnes of waste every year, produces enough power for 48,000 homes. In the long term, Veolia expects that waste-fuelled power has the potential to meet 2 per cent of UK electricity demand. I 14 - info - november / december 2016

FT named Europe’s ‘most important business read’

The Financial Times has been named as Europe’s most influential international publication in the 2016 Global Business Influencers survey from Ipsos MORI. Over a quarter of the world’s top two million business influencers regard the Financial Times as the most influential media brand (25.4%), followed by CNN (24.7%) and BBC World News (23.9%).

GEFCO boosts UK business

Transport and logistics firm GEFCO UK has secured new projects with several new clients, including Aberdeen City Council and the Forestry Commission, to manage their vehicle conversion. The conversions will range from ply lining to vehicle signage, beacons and interior racking and bulk heads.

Natixis moves into real estate, infrastructure, aircraft To meet the needs of institutional investors, Natixis Asset Management has launched a new area of expertise, real asset private debt, combining three complementary, high-potential sectors: real estate, infrastructure and aircraft. These private debt financing units aim to offer more diverse asset classes to investors. By 2018, the company aims to have €3bn in assets under management and a team of 15 specialists to service the new business.

UBS launches digital wealth management platform

UBS SmartWealth provides regulated and real-time advice online, recommending suitable investment strategies based on clients’ individual financial situations and their attitude to risk. Putting life goals at the centre of the client’s wealth management strategy, investments are regularly checked and adjusted by experts. I


BUSINE S S WOR LD – NE WS AND ANALYSI S

Airbus’s Zephyr orders take off Demand for Airbus’s modern airship Zephyr continues to

grow, with the UK Ministry of Defence increasing its order to three units. The ultra-lightweight unmanned aerial vehicle (UAV), formally known as the Airbus Zephyr S High Altitude Pseudo-Satellite (HAPS) unit, flies at 65,000ft and can fly over the same area of land or sea for weeks at a time, without landing. With a wingspan of 25 metres, it runs exclusively on solar power. ‘Zephyr is a highly cost-effective complement to satellites

The Zephyr is leading the field of UAVs. In addition to

and conventional aircraft with the potential to bring unique

being used for military purposes, the unmanned aerial

communication and surveillance capabilities to the UK

vehicle can be used for humanitarian missions, precision

and other nations,’ said Sophie Thomas, HAPS Programme

farming, or even to provide internet coverage to regions with

Manager at Airbus, commenting on the news.

no connectivity. It will be delivered in summer 2017. I

Many of us have dedicated more than a decade to this project. It’s an incredible feeling to see it take off like this – Paul Stevens, System Design Authority for Zephyr S

Renault lines up Microsoft for connected cars The Renault-Nissan Alliance and Microsoft Corporation

and personal,’ said Ogi Redzic, Renault-Nissan Alliance

have signed a global, multiyear agreement to work

Senior Vice President, Connected Vehicles and Mobility

together to develop next-generation connected services

Services. ‘While the connected car experience is in

for cars, powered by Microsoft Azure. The new services

its infancy, we believe there’s so much potential to

will offer advanced navigation, predictive maintenance and

dramatically change the industry.’

vehicle-centric services, remote monitoring of car features, external mobile experiences and over-the-air updates. ‘A car is becoming increasingly connected, intelligent

The Renault-Nissan Alliance aims to develop connectivity technologies to support the launch of 10 vehicles with autonomous driving technology by 2020. I

PwC brings in legal division

Following approval by the Solicitors Regulation Authority, PwC is integrating PwC Legal into its UK business, in order to become a multi-disciplinary practice. ‘This is the natural next step. PwC Legal has a simple strategy to offer advice that complements services provided by PwC,’ said Kevin Burrowes, Head of Clients and Markets and Executive Board Member at PwC. PwC Legal has 16 partners, 26 directors and a team of 350 based around the country.

SPIE UK goes underground

BT has awarded SPIE UK a contract to upgrade 23km of its networking tunnels, which carry cabling that forms the base of BT’s central communications infrastructure. The contract, worth £3.3m, sees SPIE provide BT with cost planning and risk management consultancy, alongside design and technical management. The two companies have worked together since 2011.

VINCI Construction Grands Projects wins gold

At the Groupe Moniteur BIM d’Or awards, which rewards the best Building Information Modeling (BIM) and digital modeling initiatives by French companies, VINCI Construction Grands Projects won the top prize for its project to renovate the five-star Mandarin Oriental Hotel in London. In total, VINCI won eight gongs during the ceremony, held on 19 September. I info

- november / december 2016 - 15


Analysis and look ahead As we approach the end of the year, INFO looks at the latest news on Brexit and its impact on the Franco-British community here is now no doubt left that Brexit will impact all of us.

T

have noted that many of our consulting firm members and

Uncertainty reigns over how Brexit will be implemented;

others have set up their own in-house teams to try and cut

who will be allowed to live and work in the UK; whether investing

through the uncertainty: Heads of Brexit have been appointed,

in long-term projects in the UK is wise; and what the trading

Brexit Taskforces have been set up, and Brexit Hubs (including

relationship with the EU will look like, post-Brexit. Paired with

our own, on the French Chamber website) have been created.

rising inflation and slower growth, some businesses have even had to adjust their prices, which then has an impact on sales.

The general advice for companies today is to plan for the worst and hope for the best. This means imagining an outcome

The recent High Court ruling, which blocks Theresa May

where UK-based companies must trade with the EU using

from triggering Article 50 without the Parliament’s consent,

World Trade Organisation rules (and, of course, the associated

makes the outlook even more uncertain, Carolyn Fairbairn, the

tariffs). Only time will tell how Brexit is negotiated, but in the

Director General of the CBI, has warned.

meantime, preparing for tougher times is your best strategy.

At the Chamber too, since the EU Referendum result, we

We will stay by your side throughout the journey. I JH

Key dates Autumn Statement

Monetary Policy Committee

European Council meeting

London, 23 November

Announcement

Brussels, 15-16 December

Chancellor Philip Hammond will use

London, 15 December

When asked about his meeting with

this high-profile speech to set out his

How much impact has Brexit had on the

Prime Minister Theresa May in October,

forecasts for the year ahead. Expect to

UK’s finances? The Bank of England’s

Commission

hear clear messages about Britain being

Monetary Policy Committee will release

Juncker just responded with, ‘Pfffff...’

open for business... but the devil will be

its minutes in December, outlining how

Will the UK Government manage to

in the detail of his statement, including

the economics look, and how they plan

make more headway during the last EU

what he has to say about Brexit.

to ease the pressure.

meeting of 2016?

President

Jean-Claude

In my opinion, the only real alternative to a “hard Brexit” is “no Brexit”. Of course it is, and can only be, for the UK to assess the outcome of the negotiations and determine if Brexit is really in their interest [...] To put it simply, the ball is now in your court

The French community in the UK is worried because of the great uncertainty about its future; its members have invested a lot in this country. It is also worried, because in the aftermath of the referendum, some French nationals were subjected to negative or aggressive language

DONALD TUSK, President of the European Council, speaking to the European Policy Centre in October

HE MS SYLVIE BERMANN, French Ambassador to the UK, speaking to the House of Lords’ Select Committee on the European Union

16 - info - november / december 2016


COMMENT: BUSINESS CONFIDENCE ’SHATTERED’ Vicky Pryce, Board Member of the Centre for Economic and Business Research (CEBR) and a former Joint Head of the Government Economic Service, was the guest speaker at the Chamber’s Women’s Business Club, held on 6 October at the French Residence. In this comment piece, she shares her view on how Brexit has affected business confidence across the UK

T

he ‘no’ vote in the EU referendum of 23 June was a huge

feet, looking at possibly relocating some of their operations

shock to the markets: they simply had not priced in that the

elsewhere and the government has had to offer guarantees,

British people would vote to leave the European Union.

as with Nissan for example, to ensure continued investment

What was the immediate effect? Sterling fell to levels

in the UK. The financial sector is also increasingly vocal about

not seen in 30 years and the stock market nosedived. But

the danger to the City of losing ‘passporting’ rights and the

reassurances given by Bank of England governor Mark Carney

tech sector is writing open letters to highlight the importance

on the morning of the 24th helped to rally shares. Carney gave

of access to a foreign talent pool. Meanwhile, Cabinet

immediate extra liquidity

divisions are surfacing

assistance to the banks,

daily – over the precise

with more promised if

nature of immigration

needed, and cancelled the

controls; the need to

requirement for building

protect the City and

up a counter-cyclical capital

what the cost of that

buffer next year, which

might be; whether WTO

released a further £150bn

tariffs will be what Britain

into the system. In August,

reverts to after a clean

interest rates were cut

break in two years time;

to 0.25 per cent, and he

and/or on the final terms

introduced a new bout of

of any agreement before

quantitative easing, worth

the ‘divorce’.

up to £60bn of government

Will

bonds in the secondary

extension

market. This has helped to steady the nerves. After an initial sharp drop in sentiment suggesting that a recession was imminent, business and consumer confidence

there of

be

an

Britain’s

current membership if no satisfactory deal is reached by 2019? Or no ‘Brexit ‘ after all? What are our former European partners prepared to negotiate? All unknown.

recovered through the summer months. Manufacturing

The latest estimates suggest that the economy grew by

exports benefited from the lower pound, and taking

0.5 per cent in the third quarter, faster than expected. That

advantage of a weak exchange rate, households and overseas

is welcome. However, this was due entirely to services growth

buyers went on spending in the shops. Forecasts of recession

while industrial production, manufacturing and construction

were replaced by expectations of growth of 1.8 per cent or

all fell. Commercial property investment has dropped to its

more for 2016 as a whole, as the economy was proving to be

lowest level in four years and inflation has risen to 1 per cent

remarkably resilient.

and will go up further because of sterling’s depreciation, eating up any real rises in incomes. And while the UK will beat

The storm after the calm

forecasts for this year, the uncertainty over possible trade

Yet, no one knows what ‘Brexit means Brexit’ actually means,

arrangements will affect productivity and growth for some

and businesses and markets were surprised by the increasingly

time to come. For the next year alone, growth forecasts have

stronger ‘hard Brexit’ tone at the Conservative Party Conference.

been cut to around 1 per cent, half of what people thought before the vote. I VP

As a result, large firms have started voting with their

info

- november / december 2016 - 17


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BUSINE S S WOR LD – S TART- UP S TORY

Teads

DISRUPTING

VIDEO

Founded in 2011 Employees: 400 Equity funding: $55m Acquisitions: 6

Fast-moving French start-up Teads is transforming the way that publishers and advertisers use video online

E

veryone hates intrusive video advertising. You know the type:

Media movers

those ads that auto-play when you click on a link and then

The result of this is that native advertising has been widely

drive you mad as you try to figure out which browser tab is

adopted by publishers worldwide who, faced with a challenging

producing the unwanted noise.

market, are always on the lookout for new income streams. The

Pierre Chappaz, the Co-Founder and Executive Chairman of

Guardian, The Telegraph, CNN, Le Figaro, Le Monde, Les Echos,

fast-growing French tech company Teads, does not like them

Vogue, Vanity Fair, Bild, Welt, El País... hundreds of the world’s

either: ‘It’s a terrible user experience,’ he says. ‘It’s advertising

major publishing companies use Teads today. In total, the

that is forced on you. Users deserve a better experience.’

company today has a reach of 1.2 billion unique users through

Together with Loïc Soubeyrand, Jeremy Arditi and Bertrand Quesada, the start-up was founded in 2011 to ‘re-invent’ the advertising experience.

the publishers that it works with. ‘It’s a massive revenue opportunity for them,’ explains Chappaz. ‘With the native format, we give them access to a

While the company has now grown to more than 450

massive inventory and they can insert the advertisers’ videos

employees across 30 offices in 19 countries, its mission

into their articles. It’s a game changer for publishing, because it’s

continues to be the improvement of the video advertising

a brand new revenue flow without ruining the user experience.’

market. Its core proposition is so-called ‘outstream’ or ‘native’

This popularity among publishers means that since

video advertising, where ads exist on their own – they are not

December 2015, Teads has consistently been measured,

tied to another piece of video content.

month after month, as the number one global video advertising

‘When ads are presented this way, it is more respectful of the viewer,’ Chappaz explains. ‘Our ads are soundless by default,

marketplace in the world by comScore. Its success has helped the company to attract significant

We can become the biggest independent company in the advertising industry within five years so the user can either decide to activate the ad and watch it, or

funding – more than $55m in five rounds – which has helped

they can just ignore it if they are not interested.’

Teads to grow and acquire other start-ups. This is a key part of

The advertisers love it, too, as the videos are only viewed by people that are interested in doing so.

the company’s growth plan. ‘Our strategy is to consolidate around other companies that

This contrasts starkly with ‘pre-roll’ advertising, where users

can provide us with technology we don’t have,’ says Chappaz.

are forced to watch an ad before having access to the video

‘This allows the Teads team to stay focused on what we do best,

they originally wanted to watch. Media analyst firm comScore

which is to scale our platform and provide the best service, at

estimates that 60 per cent of people leave a page in less than

scale, to publishers and brands.’

two seconds when they are confronted with a pre-roll ad.

But the company has even bigger future goals: ‘Our goal is to

‘This is a disaster for the brand, as although they have to pay

build a force that, working with the best publishers around the

for the click, it doesn’t actually become a video view,’ Chappaz

world, is capable of challenging and presenting an alternative to

says. ‘With our model, it’s a totally different operation: brands

Facebook and Google. We can become the biggest independent

only pay if a user is actually interested in watching your ad.’

company in the advertising industry within five years.’ I JH

info

- november / december 2016 - 19


ContentSquare raises $20m warchest

Linkfluence fundraises €12m for growth

ContentSquare uses artificial intelligence to capture

Linkfluence has closed a €12m investment round with

behavior insights in ecommerce and digital experiences, to

existing shareholders Banexi Ventures, Orkos Capital and

help brands increase their conversion rates. London-based

Sigma Gestion. BNP Paribas Development has also joined

investors Highland Europe provided the Series B funding

as an investor in the social media intelligence firm. The

in October, which will be used to expand its international

investment will be used by Linkfluence to accelerate its

operations.

international growth and R&D. The company helps brands to monitor, analyse and engage social media, tracking more than 110 million publications and 300 million sources in 60 languages. Existing clients include multinationals such as Danone, Sanofi, Orange and McDonald’s. I

Teads acquires Brainient to make smarter ads Video advertising marketplace Teads has acquired Brainient, a British company with technology that matches

The advanced and predictive analytics market is growing fast. By 2018, analysts predict it will be worth more than $3bn

a user’s profile and preferences. This includes sociodemographic data, their location, the time of day, weather and other contextual data. Teads will use this technology to engage consumers better and to improve results for the advertisers that use the Teads platform. I

Using artificial intelligence to track consumers is a relatively new market, which ContentSquare is now leading. The platform collects more than 1,000 billion user mouse movements, screen touches and interactions in order to segment visitors based on intention and behavioural patterns. In practice, it gives brands unique data to understand why online visitors do or do not purchase Customer acquisition is not the company’s sole focus,

Aubaine launches first London deli in Covent Garden French brasserie Aubaine has opened its first Aubaine Deli, in London’s Covent Garden. The store will offer a

however. The technology’s true focus is on understanding

range of products from its bakery, including its signature

and improving customer experience.

boulangerie and viennoiserie range, sandwiches, hot and

‘Our clients want to see measurable conversion rate

cold breakfast dishes as well as salads and sharing boards.

results. We provide these results and even allow individual

‘We are incredibly proud of our bakery and boulangerie,

team members to measure their own contribution to the

and our first Aubaine Deli will showcase this,’ said Nick

sales increase,’ explained Jonathan Cherki, Founder and CEO

Young, Aubaine UK’s CEO. ‘We will open all day and offer a

of ContentSquare.

range that will be unique to Covent Garden and rooted in

The advanced and predictive analytics market is growing

our French heritage, but with a modern Aubaine twist.’ I

fast. By 2018, analysts predict it will be worth more than $3bn. ‘Our revenue has grown 20-fold in the past four years,’ added Cherki. ‘This momentum and strength supports our

Showroomprivé to hire 150 new staff

ambition to become the world leader in our field and to have

Online private sales group Showroomprivé has announced

the ability to offer a successful, user-friendly solution that

it will create 150 new positions in 2017 in France and

can be operated in only a few clicks.’

internationally, to match its growth. The positions will

ContentSquare’s customers include hundreds of global

range from business development roles to purchasing, IT

brands, such as: AccorHotels, Best Western, L’Occitane,

and customer service. In total, the group now has more

L’Oréal, Lacoste, TAG Heuer, Unilever and others. The

than 830 employees. ‘The ecommerce sector in Europe is

company was founded in 2012 and is co-headquarted in

thriving. We are delighted to be able to offer a multitude

New York and Paris, with a third office in London. It was

of career opportunities to so many talented people within

recognised by Gartner in 2014 as one of ‘the most

Showroomprivé,’ said Thierry Petit and David Dayan, the

innovative ecommerce vendors in the world’. I

company’s co-founders and co-CEOs.. I

20 - info - november / december 2016


BUSINE S S WOR LD – S TART- UPS & SME S

Petrossian expanding London operations Petrossian brothers, who introduced caviar to France. However, its international growth has primarily focused on the US. Petrossian opened its first American boutique in New York, followed by a restaurant, in 1984. A West Hollywood store and restaurant was then opened in 2001, as well as the Petrossian Lounge in The Bellagio Hotel in Las Vegas. In Europe, the brand remained France-based until 2014, when it opened a boutique in Brussels. I

Petrossian, the luxury caviar brand, has opened a London

Luxury sector boost

warehouse to streamline its operations, and intends to open

Petrossian’s expansion in London is

a boutique in the West End in the near future.

just one of many luxury brands making

The company told INFO that its immediate objective is to

a move in the UK. Q3 2016 has been quite remarkable

concentrate on B2B sales. Petrossian was already supplying

44%

Growth in spend by US tourists making the most of the pound’s drop this summer

its products to UK hotels and restaurants from Paris. In order

for the luxury industry, with many brands

to develop sales further, the firm has now opened a South-

in the UK receiving a welcome boost from tourists making the

West London warehouse.

most of the sharp drop in the pound. This summer, US visitors spent 44 per cent more than they

‘We are now distributing from our newly-opened London warehouse,’ said Isabelle Augier, director of Petrossian UK.

did in 2015, while Chinese tourists spent 21 per cent more.

‘This is the way forward for our company to be efficient in

This has translated into higher luxury sales, too: in July, sales

the UK. We are delighted to supply some of the best hotels,

of watches and jewellery were up 16.6 per cent compared to

restaurants and retailers in London at very short notice.’

2015, according to the Office for National Statistics. I

The luxury brand was first established in 1920 by the

For Chamber members: 10 per cent discount

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E DUC ATION – NE WS

One-quarter of best business schools are French

IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF - IN BRIEF

Largest intake yet for EM Normandie in Oxford EM Normandie has welcomed 89 students to its Oxford

Twenty-four French business schools have been included

campus this academic year, its largest-ever intake of

in the Financial Times’ 2016 Masters in Management Global

students onto its ‘Grande Ecole Programme’. Hendrik Lohse,

Rankings, cementing French academia as a world leader in

EM Normandie’s Oxford Campus Director, said: ‘Oxford is

business management. Of these, 12 are Chamber members:

a vibrant and cosmopolitan city and continues to attract

• HEC Paris (ranked 2nd),

students from all over the world. Our students are coming

• Essec Business School (3),

here to gain insight from some of the best minds in the

• ESCP Europe (4),

field of business. We hope to continue the expansion of

• Grenoble Ecole de Management (13),

this campus to meet the growing demand we anticipate in

• Edhec Business School (15),

coming years.’ I

• Audiencia Business School (24), • Neoma Business School (34),

ESCP Europe launches two new courses in London

• Essca School of Management (49),

Business school ESCP Europe is launching a new-style MBA

• Kedge Business School (53),

in International Management and a new Executive Masters

• Université Paris-Dauphine (57),

in Manufacturing Automation and Digital Transformation

• La Rochelle Business School (60) and

in London. The MBA, launching in September 2017, is a

• EM Normandie (63).

one-year, two-country full-time programme for young

The ranking is based on data collected from two surveys:

professionals with three years’ experience, while the

one of the participating business schools and the other of

Executive Masters is being developed in conjunction with

alumni who graduated three years ago. I

the Politecnico di Torino in Italy and process automation and

Read the FT’s full report on the rankings: https://goo.gl/UeKzvn

manufacturing firm Comau, beginning in January 2017. I

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BUSINE S S WOR LD – R E PORT S & R E SE ARCH

A selection of research papers and reports produced by Chamber member companies

EY Innovation and the FinTech landscape The global FinTech industry is growing apace, using technology innovation to capture market share from incumbents in many areas of financial services. While the FinTech entrants’ greatest impacts to date have been at the retail end of the market, the opportunity for collaboration in capital markets is real and growing. This is great timing, given the challenges faced, where innovation has become mandatory. Shaped by more than 40 stakeholder interviews, EY shines a light on the investment banking industry, examining why and how capital markets firms across the globe can and should collaborate with FinTech organisations to drive their own evolution. Innovation and the FinTech landscape: How collaboration with FinTech can transform investment banking. Available at: https://goo.gl/Ma8XMA

UBS Workforce Futures Tomorrow’s workforce will look and behave very differently. Collaborative, driven and iconoclastic Millennials will make up almost three-quarters of the global working population by 2025. Old certainties, both good and bad, about the attitudes and aspirations of the global workforce will crumble over the next decade as a powerful new wave of technological disruption and automation sweeps across the world. This new report from global future consultants The Future Laboratory and UBS examines the exciting opportunities for businesses in an emerging era when artificial intelligence, virtual reality, robotics and advanced data analytics will be established elements of the workforce landscape. Workforce Futures: Four key trends set to radically alter the workforce by 2035 Available at: https://goo.gl/U6tPzC

Atos Demanding Digital The UK is becoming a nation of digitally-discerning consumers willing to click-off and checkout if their expectations of the digital services and applications they use are not met. According to Atos’s research paper, one-third of consumers say that failing digital services affect brand loyalty, while the majority of consumers will give organisations just a couple of chances to get a digital experience right before they give up. This independently-commissioned research takes a look at the digital preferences of today’s consumers and citizens, what drives them to digital, what drives them away and how they define excellence. Demanding Digital: The rise of the digitally discerning consumer – September 2016 Available at: https://goo.gl/QAlKUx

info

info - march / april 2016 - 23 - november / december


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focus DISRUPT OR BE C

apitalism is a 'perennial gale of creative destruction', the economist Joseph Schumpeter wrote in his seminal œuvre, Capitalism, Socialism, and Democracy (1942). His thesis was that capitalism is an evolutionary process, where old business models are incessantly destroyed and new ones are incessantly created. Three-quarters of a century later, Schtumpeter's words are still as relevant as ever: disruption continues to push companies to adjust and adapt to new business models and markets. Business leaders find themselves challenged as never before. In this issue of INFO – the last of 2016, which the UK will remember as the most disruptive year in a generation – we take a deep dive into how disruption is affecting not just Franco-British businesses, but also society as a whole. The French Minister of State for Innovation and Digital Affairs, Axelle Lemaire, and the British Minister of State for Digital and Culture, the Rt Hon Matthew Hancock, open this Focus with a top-level view of how disruption is affecting governments and the people they serve. This is followed by a slew of articles featuring some of Europe's leading business minds, academics and investors that put disruption into a business context. In his interview with INFO (p30), Vivendi CEO Arnaud de Puyfontaine says that the best way to embrace disruption is to make it your own. I hope that the next 20 pages will help you to own your space, own your market, and continue to thrive. I JH

info

- november / december 2016 - 25


DISRUPTION IN NUMBERS Data is one of the key tools used by disruptors to change and create new markets. INFO looks at the data surrounding disruption, to see what the major trends are affecting disruptive businesses

HOW CONCERNED ARE YOU ABOUT TECHNOLOGICAL CHANGE AND NEW MARKET ENTRANTS? Entertainment and media

47%

Insurance

22%

39%

Banking

22%

36%

Healthcare

19%

31%

Asset Management

24%

20% 14%

FRENCH AND BRITISH DISRUPTIVE START-UPS HAVE BECOME UNICORNS

7

1

Source: PwC

Source: Fortune

number of UK unicorns Global Fashion Group London Uk, E-commerce

Powa London Uk, Mobile payments

Blippar London Uk, Augmented reality

BlaBlaCar Paris, France Transportation

number of French unicorns

Farfetch London Uk, E-commerce

Oxford Nanopore Oxford UK, Biotechnology

Funding Circle London Uk, CrowdFunding

79%

VS

of the most innovative companies have well-defined innovation strategies

TransferWise London Uk, Mobile payments

47% of the least innovative companies

Source: PwC

COMPANIES ARE AT RISK

Source: Accenture

20% 52%

75%

of Fortune 500 companies have gone bankrupt, been acquired or ceased to exist since 2000

of chief strategy officers believe their companies are ‘highly prepared’ for sudden industry disruption

of Standard & Poor’s 500 companies from 2012 will disappear by 2027

$4.7tn

of revenue for traditional financial institutions is at risk of being disrupted by new technology entrants Source: Golden Sachs

The cost of building a start-up has decreased dramatically from $5m in 2000 to $5,000 in 2011 Source: Upfront Ventures

The UK fintech sector has now grown from its disruptive roots into an industry of its own right, generating £6.6bn in revenue in 2015 Harlett Baldwin, Economic Secretary to the Treasury

26 - info - november / december 2016


WILL FINANCIAL INSTITUTIONS BE DISRUPTED ?

MEDIA MENTIONS OF ‘DISRUPTIVE INNOVATION’ ARE NCREASING, SHOWING HOW DISRUPTION IS BECOMING A TALKING POINT 2,075 1,745 1,528

of bank CEOs believe that part of their business is at risk of being lost to stand-alone fintech companies

918 624

Characteristics of disruptive businesses include: lower gross margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics

378

2010 2011 2012 2013 2014 2015 Figures show number of media articles mentioning ‘disruptive innovation ‘ in each calendar year, exclusing duplications

DISRUPTORS ARE WORTH AS MUCH, BUT EMPLOY FEWER PEOPLE:

Company (industry)

Professor Clayton Christensen, who coined the term 'disruptive innovation'

Value in $bn

...but with fewer employees

41.2

France Télécom Orange

1,500 vs 165,500

Netflix (media)

25.2

Saint-Gobain

2,200 vs 187,000

Flipkart (e-commerce)

13 10.6

Peugeot

600 vs 190,000

Veolia Environnement

8,000 vs 203,000

Square (mobile payment)

6

Faurecia

1,000 vs 82,000

Spotify (music)

4

BioMérieux

1,370 vs 9,000

2.6

Air France

1,300 vs 95,000

Criteo (advertising)

THE TIME TO REACH A BILLION DOLLAR VALUATION IS FALLING

Source: Deloitte

65% 51%

20

10 Y E A R S

Equivalent to...

Uber (transport)

AirBnb (accommodation)

Source: PwC

YES 83%

Source: EY

8

6

of insurance CEOs see new market entrants as a threat to growth

of IT leaders believe their company faces digital disruption before 2018

Source: PwC

Source: Microsoft

46%

4

2 Typical Google Facebook Tesla Uber WhatsApp Snapchat Oculus Rift Fortune 1998 2004 2003 2009 2009 2011 2012 500 companies

of senior leaders are unwilling to disrupt their business to grow in the future Source: Microsoft

info

- november / december 2016 - 27


© Patrick Vedrune

INFO interviews:

AXELLE LEMAIRE French Minister of State for Innovation and Digital Affairs How important is digital disruption in government, and

Some 150,000 people participated, more than 90 modifications

why is it important for government services to become

were made and five new additions were added onto the Digital Bill.

more digital? The digital revolution is affecting all economic sectors and

How are you supporting disruption among French start-ups

changing the way that people consume goods and services,

and businesses?

and this is changing citizens’ expectations of public authorities.

France is already embracing the digital revolution. As you know,

Digital disruption in government is part of this same movement,

in France we take revolutions rather seriously... and there is a

and it could be a key factor towards improving the effectiveness

deep political will to support this important trend.

of the public administration. There is still much to be done.

We are acting from a number of angles to support this

When I was appointed Minister, I was struck by how much

digital transition. For example, we have put €20bn of public

France is still a paper-based country, especially when it comes

and private money into building an ultra-fast fibre optic internet

to administration and political decision-making processes.

broadband network across the whole country by 2022; we have

What actions are you taking to bring the digital disruption

given subsidies to businesses that invest in their own digitisation;

agenda forward?

and are supporting the creation of a digitally-savvy workforce

I’ve been working relentlessly on bringing digital to Government

and teaching coding in our primary schools. Last but not least,

services, such as massive open data, horizontal structures

we believe that digital opportunities must benefit the majority of

and bottom-up problem-solving. In 2012, we created a new

people – not create new inequalities between parts of society.

structure dedicated specifically to public sector modernisation,

The Bill for a Digital Republic ensures this.

pushed the growth and internationalisation of ‘La French Tech’;

running the public open-data process and experiments in open innovation between government and start-ups.

Can France become a global leader in disruption? How?

That is the spirit of my recently-enacted Bill for a Digital

France now has everything it needs to be a global leader in

Republic. By implementing open data by default in government

disruption. We have a well-educated workforce, have important

services – creating a public service for data and fostering

venture capital funds located in France, and we have a strong

information mobility between departments – it creates a digital

and diverse start-up ecosystem.

revolution that cuts through the heart of French Government.

In addition, this coming year, France will hold the presidency

This Digital Bill is also a good example of our disruptive

of the Open Government Partnership – a multilateral initiative

approach. For the first time, through a digital platform built

that aims to secure commitments from governments to

by a French start-up, we have offered every French citizen the

promote transparency, empower citizens, fight corruption

opportunity to actively participate in the Bill. For three weeks,

and harness new technologies. This will be another great

last autumn, everyone had the opportunity to vote on laws

opportunity for France to promote its widespread knowledge

and propose new ones, just as an MP could do with any bill.

and collective ability to disrupt. I Interview by JH

28 - info - november / december 2016


INFO interviews:

THE RT HON MATTHEW HANCOCK MP British Minister of State for Digital and Culture How are you bringing the digital disruption agenda forward?

How are you supporting disruption among UK start-ups and

The UK is one of the world’s leading digital economies. Digital

businesses?

businesses contributed £118bn to our economy in 2015 and

We want the UK to be the best place in the world to start up and

employed more than 1.4 million people, but this is just one part

scale up a digital business. We launched Tech City in London in

of the story. Technology is transforming every sector – creating

2010 and it is now recognised as one of the leading tech clusters

new products and customer experiences and improving business

in the world. By funding initiatives such as Tech City UK, the

productivity. We are doing everything we can to support this.

Digital Catapult, and the Internet of Things UK programme, we

We are recognised as a leader in digital government – alert to the opportunities of technology and the internet, open to sharing

are helping innovative businesses across the country to expand and flourish.

and learning with other countries. We are a founder-member

We’ve taken huge steps to make sure the UK is attractive

of D5, a group of digitally-advanced governments working

to investors and entrepreneurs. We have a highly-competitive

together to share best practice, develop solutions and build

tax regime, and British Business Bank programmes have also

digital public services, and are committed to unlocking

unlocked £3.2bn of finance for 51,000 smaller businesses,

untapped growth in the data economy through our bilateral

including 41,900 start-up loans worth more than £253m.

UK-France Data Taskforce. We’re making sure we have the digital infrastructure we need

Can the UK become a global leader in disruption? How?

across the whole country. We’re on track to give 95 per cent of

We are already a global leader in developing new technology,

the UK’s homes and businesses access to superfast broadband

and in Government we are working tirelessly to make sure

by the end of 2017, and to reach 97 per cent by the end of 2020.

the incredible success continues. The UK is rightly seen as the

But we need to go further so the UK benefits from the next

fintech capital of the world and I’m particularly excited about

generation of connectivity, including 5G and fibre networks.

the potential for the legal profession, which is just starting to

We need to help everyone get the skills they need. We’ve introduced a new computing curriculum, and we’ve announced

explore what digital technology can do. I know other industries will follow or they will be left behind.

plans to make training in basic digital skills free for adults in

We need to make sure we’re at the cutting edge of research

England who need it. We’re also supporting the advanced skills

and innovation, as we have been since the industrial revolution.

increasingly in demand across the economy by supporting the

Technologies such as artificial intelligence and data analytics

establishment of the National College for Digital Skills.

are changing how the world works, and British companies

It’s essential we have a safe and secure online environment

are leading the way. Abcam, for example, is a UK life sciences

and protect against cyber threats. We are investing £1.9bn to

firm worth £1.5bn which takes orders on the web and uses

help make the UK the safest place to live and do business online,

robot-powered fridges to select and deliver antibodies for

and have recently opened the National Cyber Security Centre

shipment. Its effective data use has turned it from small start-up

and launched our National Cyber Security Strategy.

to dominant world player. I Interview by JH

info

- november / december 2016 - 29


FOCUS – DI SRUP T OR BE DI SRUP TE D

Reacting to

Disruption A R NAU D DE P U YFONTAINE

TANUJA R ANDER Y

Disruption affects all businesses, large and small. INFO interviews Arnaud de Puyfontaine, CEO of Vivendi, and Tanuja Randery, President UK and Ireland of Schneider Electric, to hear how larger businesses are reacting

W

hen you’re a start-up, reacting to disruption is simple:

from downloading. Swift reaction to the disruptive change is

you just go ahead and pivot. This is much harder to

what enabled Universal Music to thrive.

do when you’re a multi-billion pound business with

offices spread across the world, employing tens of thousands

Constant innovation

of people. When you take a business of that spread, depth and

Constant innovation within your business also helps to mitigate

size, how do you react to disruption?

the effect of external disruptors, as Tanuja Randery, Zone

The first step, says Arnaud de Puyfontaine, CEO of Vivendi,

President at Schneider Electric, explains. For her company,

is to recognise that disruption is an issue that affects your

this means partnering with a venture fund and acquiring

business. Too many incumbent companies have their heads in

companies, but also ensuring that innovation is at the heart of

the sand and ignore that their markets are changing – often

the company’s culture.

until it is too late.

‘There is no magic bullet, of course. But what I’ve found is

‘No business – no matter how large or seemingly entrenched

that, from a cultural perspective, ensuring that your company’s

– is immune to disruption,’ he explains. ‘The reality of “adapt or

core DNA is around innovation, constantly looking for adjacent

die” must be constantly front and centre.’

spaces to grow into, helps to keep the plane flying,’ she says.

Puyfontaine uses the music industry as an example. Over

To constantly improve your business and your products

the last 15 years, the digitisation of music has grown significantly,

in a way that keeps you ahead of disruptors requires serious

and with this came side effects such as piracy and peer-to-peer

investment and awareness of what is happening in the field,

sharing, as the traditional physical album became less popular

however.

with consumers.

Schneider Electric does not shy away from this: last year, the

The impact on the industry has been enormous: recorded

company spent 5 per cent of its $26bn revenues on R&D. ‘It’s a

music has lost around two-thirds of its value since the turn of

machine that is constantly on the innovation cycle in some form

the century, he explains. Universal Music, the market leader

or another, and that helps us to keep ahead of the market and

that is owned by Vivendi, was deeply impacted by this market

keep competition at bay,’ Randery explains.

shift. But the business did not ignore the problem.

For Puyfontaine, being agile and trying new things is also

‘We anticipated this move and contributed to the

key: ‘The entrepreneurial disruptors experiment their way to

development of services such as streaming, allowing the industry

success. Chief executives of traditional organisations must

to bounce back and find new long-term growth opportunities,’

act the same way,’ he explains. ‘They must adopt this “try

says Puyfontaine. ‘Subscription streaming, previously considered

or fail” approach and accept to take risks in order to survive.

a niche market, is about to become mass market.’

It is no longer simply a matter of “disrupt or be disrupted”.

Indeed, last year, digital sales overtook physical sales for the first time – €8.5bn vs €8.2bn. And in 2016, sales from streaming are expected to grow by 40 per cent, outperforming revenues 30 - info - november / december 2016

The challenge is to create a flexible, fertile environment for individuals and teams to leverage their full potential.’ This is why attracting and retaining talent is critical, he adds.


The entrepreneurial disruptors experiment their way to success. Chief executives of traditional organisations must act the same way. They must adopt this “try or fail” approach and accept to take risks in order to survive ‘Of the skills required, I favour managers and colleagues who share curiosity, determination and insight.’

Schneider Electric also organises between four and eight ‘expeditions’ for senior leaders to meet start-ups and companies

Randery echoed this, explaining how curiosity plays a role

that are doing things differently. ‘It ensures we don’t get stuck in

in keeping the business moving forward. ‘We bring a lot of skills

the old world of operational efficiency,’ she explains. ‘We don’t

from the outside. It’s a company where people have a constant

allow the company’s wide breadth to stifle innovation.’

intellectual curiosity about what they’re doing, and whether there is a better way to do things.’

The evidence is clear: how companies react to disruption matters. Do not allow yourself to be caught short. I JH

CASE STUDY: AXA & KAMET VENTURES We want to build solutions that impact the entire industry

M

any large corporates are responding to disruption

AXA’s data, knowledge and systems – all the important

by setting up their own incubators. Many larger firms

factors that give start-ups growth leverage. In return, AXA

take a hands-off approach to this, giving the incubators the

is given rights of first refusal to invest in the companies

freedom to take risks and discover new products, solutions

built by Kamet.

and markets. Kamet Ventures is a prime example. The start-up studio is backed by insurance giant AXA to the tune of €100m to

'This allows Kamet Ventures to offer the best of both worlds, entrepreneurial agility backed by the competitive advantage of a corporate,' says Guinet.

create new ‘InsurTech’ companies. The incubator is largely autonomous, which enables its entrepreneurs-in-residence to work on new ideas independently. ‘Kamet is completely free to decide which projects it wants to work on, including products that compete directly with AXA,’ explains Stéphane Guinet, Founder and CEO of Kamet Ventures, and a serial insurance entrepreneur himself. ‘Large organisations focus largely on incremental innovation. At the heart of Kamet’s proposition is disruptive innovation, looking at new ways to solve business problems.’ For AXA, the incubator allows the company to benefit from ‘strategic edging’, Guinet adds. The incubator’s role is to build companies that can offer new solutions and new products that will disrupt the insurance market. Kamet Ventures does this by attracting seasoned entrepreneurs that larger organisations such as AXA would usually struggle to bring in. As Kamet Ventures’ sole shareholder, AXA provides

‘The key is not generating ideas, but executing ideas – and that means people. This is one of our key

the companies that the incubator is building with a

differentiators: the quality of the entrepreneurs we are able

unique ecosystem that is plugged into experts, engineers,

to attract, who can then build new companies and new

regulators, business leaders and more. Over the 9-12

solutions. We don’t want to build small things. We want to

month programme, entrepreneurs also benefit from

build solutions that impact the entire industry.’ I

info

- november / december 2016 - 31


DISRUPTION:

Fad or real threat? Davide Sola, Professor of Strategy and Management at ESCP Europe, analyses what is disruption, and why it matters to businesses

T

here is a lot of talk in the media, around conference tables

Apps and cloud services replacing PC and server-based software

and echoing through social media about the phenomenon

are good examples.

of disruption. What is it, what do you need to know about

it and, more importantly, how is it shaping economies and societies moving forward? Let’s start with an example we’re all familiar with, PayPal.

Creating new markets There is a vast difference in the marketing trajectory for sustaining versus disrupting innovation.

Before online transactions became a daily occurrence, there

Sustaining innovation is a known commodity. It is aimed at

were well-established protocols for handling transfers of funds.

consumers in the most profitable niches of an existing market.

A digital transaction could be conducted using a credit card, or

Often, it is merely an improvement on the existing model – such

actual funds could change hands, sometimes represented in

as the new release of the next iPhone, for example. Companies

the form of a paper cheque. It was less than ideal in terms of

on a sustaining innovation trajectory will typically ignore less

convenience.

profitable market segments, in favor of the known commodity

Enter PayPal, originally a player in the handheld device security market. Its founders saw an opportunity to provide a more flexible system to make transactions in a digital environment.

The question is not if, but how to become a disruptor

By allowing the consumer to connect multiple payment options and eliminating the need to disclose sensitive data to

Disruptive innovation seeks the non-consumer. It is based

the seller, they disrupted a system that had been evolving over

on creating new markets. Since it is less profitable, new entrants

generations through innovation. They weren’t so much offering

are less likely to attract competition from industry leaders – and

a new service as they were changing the way we thought about

being first to market gives them a significant advantage. Once

paying for things.

the initial offering is in place, disruptive innovators work to

Disruption is a funny thing, however, as the disruptor becomes the establishment, they themselves become a target

improve in ways that target the most profitable areas of their newly-developed market.

for disruption. Today, a start-up called Stripe is giving a real hard

Disruptive innovation typically follows an easy-to-see

time to PayPal and may be very much its disruptor. So, what

pattern. A new player enters a market with a new business

actually happens?

model. Most industry leaders ignore the new entrant and instead

Innovation vs disruption To understand, we need to make a distinction between sustaining innovation and disrupting innovation. Sustaining innovation, as the name implies, tends to play in favor of the existing market – the ‘incumbents’, if you will. Sustaining innovation improves an existing model, or extends it,

remain focused on what they know is profitable. Meanwhile, the newcomers improve until their product becomes acceptable to the middle of the market, creating new competition for the incumbents. Disruption occurs when the newcomer’s product then undermines the incumbent’s position.

But why does any of this matter?

based on existing customer demand. Examples might include:

Shouldn’t established companies just focus on the more

improved semiconductors, the move from propeller to jet

profitable markets already developed? The answer lies in

engines or increased automation in manufacturing. Sustaining

understanding that the horizons of company life spans are

innovations are not game changers. They are simply more of

shortening from inception to final sale or bankruptcy.

the same, done faster and better.

The average Fortune 500 company lifecycle has fallen from

Disrupting innovations, however, are game changers. They

an average of 61 years in 1950 to the current average of 20

move to interrupt the current business model with a new, fresh

years. Not only that, but public companies are at greater risk,

idea that may supply some of the old needs, but is appealing

with 10 per cent of them failing each year, four times more than

to new customers which the established companies were not

in 1965. Fully one-third will die within five years, versus only 5

reaching effectively or were not interested in reaching anymore.

per cent 50 years ago. In the face of these odds, the question is

Since everything is new, new entrants have an advantage.

not if, but how to become a disruptor and prevent disruption. I

They don’t have to retool or rethink to adopt a new model. 32 - info - november / december 2016


CORPORATE DISRUPTION:

The opportunity to innovate How does disruption affect larger firms? Christophe Chazot, Group Head of Innovation at HSBC Bank, shares the corporate view

A

lmost 20 years after the

like us to believe, the bad news is that

publication of Clayton

‘disruptive innovation’ is almost always

Christensen’s The Innovator’s

fatal to incumbents.

Dilemma, one would think that most companies would be able to conduct

Identify, analyse and act

their innovation agenda in a way that

Each company should find its own way

avoids the risk of disruption.

to identify, analyse and act on disruptive threats, but there are a number of well

Still, most executives and CEOs seem uncertain about their strategy

established procedures and solutions

when facing the challenges of the digital

to do so. At HSBC, we have organised our

revolution. Media and social networks’

innovation agenda along three horizons.

coverage reinforce their doubts by

Horizons 1 and 2 address the

creating an atmosphere of anxiety that recalls, for those who have lived it, the

challenges of ‘sustaining innovation’

pre-2000 internet bubble years.

with digital transformation and R&D. Horizon 3, in which emergent disruptive

Corporate incumbents

emerging population of customers.

forces exist, is addressed through our

The truth is that Christensen’s theory

Ultimately, as the technology scales up,

programme of strategic investments,

does not have only negative messages

they then begin to take over corporate

industry consortia and research

for corporate incumbents. The first

incumbents’ client base.

partnerships.

piece of good news, which is often

Airbnb is a perfect example. Initially

We believe that with this approach

overlooked, is that incumbents who care

targeted at backpackers looking for

we can drive innovation across our four

about disruption almost always survive

cheap accommodation and owners

global businesses while still focusing on

– and even strive – in an environment of

looking for additional revenue – none

our existing revenue streams.

‘sustaining innovation’.

of which is a segment targeted by

The most recent examples include

Re-reading Clayton Christensen is a

traditional accommodation – the

useful exercise that delivers surprisingly

the way in which German Mittelstand

concept was progressively adopted by

positive messages to those executives

companies leverage data analytics

regular travellers and disrupted the

who are willing to look at the challenges

to further improve their products.

hotel business.

and avoid complacency. But in these

Surprisingly, most innovations should

In the financial world, the way

times of digital acceleration, be careful

probably be classified as ‘sustaining

in which Alibaba and Tencent have

not to delay this exercise. As Reed

innovation’, which benefit incumbents.

reorganised payments through the

Hastings from Netflix put it, 'Companies

creation of a completely new system

rarely die from moving too fast, and

then becomes how to identify and

is another example of such disruption.

they frequently die from moving too

analyse potential ‘disruptive innovation’.

These two companies now dominate

slowly.'

The areas in which disruption occurs

mobile payments, creating a $20bn fee

are, in fact, relatively well defined –

revenue hole for Chinese banks and

following the announcement that Netflix

they are new technologies or business

credit card companies.

would change its pricing to focus on

The question for large companies

models which initially may be less

This is the risk for incumbents:

He knows what he is talking about:

streaming, the stock price plunged 80

competitive than current ones, but

although disruption happens much

per cent... before recovering by 1,400

address different problems from an

less often than public opinion would

per cent! I

Although disruption happens much less often than public opinion would like us to believe, the bad news is that ‘disruptive innovation’ is almost always fatal to incumbents info

- november / december 2016 - 33


Leading

the

field

John Stokoe CB CBE, Head of Strategic Development at Dassault Systèmes, says being more open, acting decisively and taking more risks is the recipe to staying ahead of disruptors

I

In today's complex and diverse commercial environment, companies which are not in tune with the political and economic nuances of the landscape invariably fail. There have been too

many high-profile business collapses not to take account of the pressures which lead to such a demise. No company is immune, whether a large corporate or a small enterprise. Global economic shock does not discriminate, though it tends to affect larger companies more, with their- wide-spread interests, investments and global investors. Withstanding such shocks and remaining at the leading edge of success is multi-faceted. Staying alert to – and, where possible, anticipating – political and economic change is key, but even more relevant is retaining a willingness and desire to transform and change.

1. Be open to change This is essential in companies which have grown through acquisition. There is a fine line between retaining the brand value of the acquired company and absorbing it completely into

Leaders and managers at every level must have the confidence to observe what is happening, consider relevant factors, decide what needs to be done, and then act – rapidly!

the organisation of the parent which, if carried out too quickly and with lack of sympathy, can destroy the very value for which it was acquired.

Tortuous levels of approvals, bureaucracy and risk aversion prolong decision making, introduce unnecessary complexities

Transformation to retain a competitive edge is about

and add considerable cost. When this occurs, businesses lose

creating a winning culture; seizing the advantage to be gained

sight of the intended outcomes and price themselves out of the

by imaginative ideas and innovation; the adoption of new, game-

market. Such actions fly in the face of trust, responsibility and

changing technologies; and motivating that most important

accountability.

business asset, your people, to be the willing driver on the route to success.

3. Reward (measured) risk

However, none of that will work without strong but

Teams and their leaders should not be fearful of corporate

empathetic leadership to create the culture which empowers

censure for taking measured risks and decisions – such an

people to innovate, create and be willing to take decisions to

environment stifles innovative activity.

grow value.

2. Act quickly

Innovation requires people who will take a decision and, if necessary, ask for approval afterwards, rather than people who will not make any decisions until they have permission

All too often, opportunities are missed or lost due to excessive

from layers of corporate approvers, which simply stops any

bureaucracy and lack of delegation in decision making.

competitive momentum in its tracks.

Speed, coupled to appropriate risk mitigation, is vital, as is

In the latter case, the opportunity will be lost to the

the confidence and authority to assess and take risks at the

competition. The objective is to get inside the competition's

lowest possible level. Confidence and trust in business leaders

decision cycle – being able to think and act faster than a

is a prerequisite.

competitor in order to win.

Competitive risk assessment and mitigation requires

This requires a culture in which leaders are trusted and

an understanding of the nature of the task, what will be

supported to do the right thing, creating an environment for

required to carry it out, and the desired outcome. That only

success with highly motivated, knowledgeable and confident

comes from delegating responsibility to those closest to the

people having implicit trust in their leaders to support, guide

task or opportunity. Pragmatic risk taking greatly assists the

and encourage them, knowing that it is a team effort.

achievement of objectives. It speeds up decision making and generates competitive momentum.

Trusted, respected and responsible leaders will instinctively do the right thing and satisfy those above them that the

Leaders and managers at every level must have the

business is in dynamic, innovative and capable hands. That

confidence to observe what is happening, consider relevant

requires courage to change – but in the knowledge that such

factors, decide what needs to be done, and then act – rapidly!

change will generate a winning, unstoppable momentum. I

34 - info - november / december 2016


FOCUS – DI SRUP T OR BE DI SRUP TE D

SCALING FOR DISRUPTIVE SUCCESS A key aspect to becoming a disruptor is your ability to scale quickly. Chris Sheldrick, Co-Founder and CEO of what3words, looks at how fast-growing, disruptive companies can scale

The world is poorly addressed. In developed nations, bad address systems are frustrating and can cause expensive delays; while in developing nations not being able to provide an official address can be life-threatening in an emergency. what3words is a disruptive company that creates a unique combination of just three words that identifies a 3mx3m square, anywhere on the planet. It’s far more accurate than a postal address and it’s much easier to remember, use and share than a set of coordinates. While the label of ‘disruptive start-up’ is seen by many as a badge of honour, the defining challenge for a business is to scale beyond that initial behaviour change. Here are several ways that it can be done.

Define your ‘critical mass’

Specify and diversify

Success is often measured by volume use. To achieve this, make your tools and services widely available, allow developers to integrate your technology and invest in language updates. Be clear about how many lives you want to change and don’t stop until you’ve exceeded that goal.

Can you be more precise while also being more general? For many fast-growing businesses, such as what3words, this means relentlessly improving and refining your business offering, while also making what you do relevant to ever more industries. The more sectors that can see a benefit in your service, the greater propensity you have for continued growth.

Invest to grow (not grow rich)

Be everywhere, always

‘Investment’ takes many forms – funding, expertise, experience, a shared willingness to affect change. It’s something that should extend beyond a balance sheet, so make sure you take it all in. Also, remember that investment goes both ways. That disruptive start-up mentality will also positively influence the established businesses that invest in you.

If you want to disrupt at a global level, then you must operate on the global stage. Be in the places and spaces where your customers are. That could be the next business convention of industry leaders or on social media, tapping into the discussions and engaging the conversations.

Be the best at what you do The world is full of copycats and competition. If you don’t lay claim to the high ground, then they will. So believe in your disruptive creation and make it the best it can possibly be. Competition is healthy but only when you’re out in front.

To sell a disruptive new product to businesses, allow those business customers to become disruptive through you. Embrace these co-branding opportunities and empower your customers to offer fresh products and experiences. In turn, partnering with established brands adds credentials to your start-up. It works for both sides.

The label of "disruptive start-up" is seen by many as a badge of honour, but the defining challenge for a business is to scale beyond that initial behaviour change. How you continue to redefine the boundaries is what really makes the difference info

- november / december 2016 - 35


INVESTING IN DISRUPTION:

Risk or opportunity? Alexandre Covello, Founder and CEO, AngelsCube, and Co-Chair of the Screening Committee of Harvard Business School Angels of London, says that with great risk comes great reward

T

he last two decades

as

StumbleUpon,

have

seen

huge

levels

of

digital

eBay for $75m) and

disruption across various

Max Levchin (invested

industries,

creating

which was bought by

some

in HomeJoy and Paypal,

of today’s leading corporate

which was sold to eBay

giants, such as Facebook, Amazon,

Google,

Uber,

for $1.5bn). The mouthwatering returns for those

SnapChat or Slack in the US;

investments made at seed

Alibaba, Baidu or WeChat in

or early stage are the reason

China; and the likes of Skype, Spotify or Zalando in Europe. Most of the time, incumbents and market leaders do not worry

that so many smaller angels attempt to replicate that success and are in constant chase of the next disruptive company.

about the market segment that

Disruption is a complex dynamic

the outside disruptor is targeting

though, which is much easier to

because it is considered less relevant

identify with hindsight rather than

or profitable. But a growing number

while it is taking place. For investors,

of start-ups are now doing something that

once

seemed

unthinkable:

disrupting corporate giants. This is a trend that gives corporate executives sleepless nights. If you are part of a successful company or product, chances are a more agile competitor has already started disrupting you.

The investment opportunity Disruptive technologies are therefore an opportunity, both

thinking about the implications of the coming wave of creative disruption, the future can be difficult to apprehend. The best opportunities are also difficult to access; possessing the right entry points in the venture ecosystem is critical. Investing in early stage businesses remains intrinsically risky, however, as each investment is by definition immature. The business is subject to failure from many different angles, including managerial competence, technological efficiency and market acceptance and disruption itself.

for entrepreneurs to launch new ventures and investors to

As digitalisation spreads and low start-up costs enable more

back them, long before they become a threat to established

entrants, we can expect to see accelerated disruption in the

companies. As such, investing in early-stage disruptive

years to come. The cost to launch a tech startup now compared

companies can be a great opportunity as the market will

to just over 15 years ago has been divided by a thousand.

generally be slightly sceptical for some time and it tends to

Digital disruption is an overarching, universal theme with

underestimate the risk of disruption in the short term for

the power to reshape almost any industry that benefits from

established players.

digitalisation, connectivity and sophisticated data processing.

Disruption can thus be very exiting for investors looking to

New technologies to focus on are the ones that will help lower

ride the wave of change in a specific industry. Famous Angel

costs, create productivity savings, for companies and consumers,

Investors include people such as Paul Graham (who invested

and provide more tailor-made solutions. Early winners will be

in Watsi, ClassDojo and Viawebm which was bought by Yahoo

those that have a clear proposition and technological edge that

for $49m), David Lee (invested in DoorDash, Judicata as well

allows a rapid scaling up of business volumes. I

36 - info - november / december 2016


FOCUS – DI SRUP T OR BE DI SRUP TE D

Seven models to build a disruptor EDHEC Business School’s Karin Kollenz-Quétard, Professor of Strategy, and Teaching Assistant Pierre-Olivier Bligny, offer seven techniques for companies to respond to – and become themselves – disruptors

D

ue to rapid advancements

supermarkets, like Carrefour in the

experience in advertising, but also in

of technology, disruption is

1980s. Established brands, such as

distribution (direct and store delivery).

becoming the new normal

Evian could have considered the 30-

Additionally, they set up capsule-

for all industries: digitalisation has

50 per cent cheaper water, occupying

recycling points to become more

fundamentally transformed the way we

massive shelf space, as a threat.

competitive in terms of environmental

do business and has metamorphosed

But actually they profited from its

sustainability.

entire sectors (e.g. music); 3D-printing is

introduction, because supermarkets

changing manufacturing industries; the

helped moving bottled-water

though, if the incumbent company

blockchain is about to disrupt financial

consumption to mainstream from being

focuses on product enhancements

services; big data and the internet of

considered a waste of good money by

only. With the (disruptive) innovation

things enable new or better products,

the average consumer.

becoming better over time, it is likely

services and processes in almost all areas of business; and it is difficult to

A wait-and-see approach is recommended when there is

This option can become a trap,

that at some point it will be good enough for a majority of customers.

3 2 1

identify an industry that will not be

reasonable doubt about the future

At this point, the incumbent will lose

strongly impacted (not to say disrupted)

superiority of the disruption, particularly

market share and eventually go out of

by the advances of artificial intelligence.

if there is a possibility to ‘join the party’

business, succumbing to what is called

Consequently, today’s companies

later at limited extra cost. It is however

‘the innovator’s dilemma’.

will only survive if they learn to live

important to point out, that even if

with disruption. What are the strategic

doing nothing is the best option at a

options for companies facing a potential

given point in time, the company should

disruption, from a new entrant or

closely follow the development of

3. Build the 'best of both worlds'

existing competitor? Here is how to use

the potential disruption and consider

Incumbents can profit from disruptive

new business models and/or technology

preparing one of the following six

innovation as a source for enhancing

to build a disruptor.

alternatives.

their own business, by combining some of the innovation’s characteristics with

1. Wait and see

the strengths of their existing value

Doing nothing but monitoring the

2. Focus on existing business

disruption should always be considered

If it is possible to enhance the current

leads to superior value propositions

as an option, because ex ante it is

product, service or business model

which can only be offered by the

impossible to know whether a newly-

sufficiently to maintain an advantage

incumbent. Hybrid cars are a perfect

launched business model or innovation

over the disruption, a company should

example of responding to disruptive

will actually become a disruption. An

focus on their existing business.

innovation in this way.

innovation can trigger market growth by

Nespresso’s response to the eco-

attracting non-consumers to the market

friendly, cheaper coffee capsules sold

or increasing consumption by existing

in supermarkets is a good example.

customers.

Nespresso strengthened their customer

An example is the introduction of white-label bottled water by

proposition or business model.

This ‘best-of-both-worlds’ approach

relationship management and increased its focus on superior customer

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- november / december 2016 - 37


4 57 6

4. Create a blue ocean

Alternatively, incumbents can decide to focus on a completely

The Innovator's Dilemma

new combination of product characteristics and thus create a

Coined by Professor Clayton

new market (segment).

Christensen in his 1997 book of

The introduction of Swatch by Swiss watchmakers, which

the same name, the innovator's

were disrupted by Asian competitors such as Seiko offering

dilemma is the concept that

watches with additional functionalities at lower cost, is a text-

businesses will reject innovations

book example of a Blue Ocean Strategy. Companies that exit

based on the fact that customers

the disrupted market and use their existing resources and

cannot currently use them,

capabilities to create new markets are a more extreme form of

thus allowing ideas that have

the same type of response.

great potential to simply go to waste. As a result, incumbent

5. Play both games

companies that do everything correctly can still lose their market leadership – or even fail – because new,

If the disruptive innovation is expected to conquer a significant

unexpected competitors (i.e. disruptors) rise and take

part of the market and there are synergies between the ‘old’

over the market.

business and the disruptive innovation, a company should play both games.

It can do so either by acquiring the disruptor or by copying its business model and value proposition in addition to

7. Partner with the disruptor

keeping its ‘old business’. The new or acquired entity should

If the value propositions, the resources or capabilities of

be integrated with the existing business if the synergies (by far)

the disruptor and the incumbent are complementary to

exceed the risk of conflict between the two business models /

some extent, partnering with the disruptor can be the best

entities.

option. This approach is only recommended if both partners

A good example for playing both games is the launch of the

need each other to succeed – otherwise the risk of one

low-cost airline Germanwings (now Eurowings) by Lufthansa,

partner crowding out the other player in the medium-term is

as well as online banks launched by large retail banks, such as

substantial.

ING Direct by ING or Boursorama by Société Générale. Even if

An example of such a partnership is the cooperation

cannibalisation is a common issue when playing both games,

between the mobile operator Telenor and Facebook. Even if

remember: if there are cannibals in the jungle, always make

Facebook Messenger and WhatsApp disrupt the messaging

sure they are part of your own family!

business of network operators, these applications drive mobile internet uptake and generate data traffic. Furthermore,

6. Embrace the innovation

In some instances, the disruptive innovation is simply superior

Facebook needs mobile network operators for providing access to its content and advertisements.

As shown in the diagram (above), the choice between

to the existing way of doing business. In this case, the

the strategic options depends on the advancement of the

incumbent should adopt the innovation and scale up using its

disruption and on the relation between the disruption and

existing resources and capabilities.

the existing business / value proposition. This relation can

The classic example of this strategic option is the

be complementary in addition to being substituting: on the

brokerage firm Charles Schwab, which changed its business

one extreme, the disruption completely substitutes the

model to e-trading when it realised the superiority of the

‘old’ business model or value propositions; on the other

technology used by a small competitor. Embracing the

extreme, there is a certain complementarity between the

innovation can also entail the acquisition of the disruptor, as

‘old’ business and the disruption, either in terms of resources

in the case of the acquisition of Connor (producing 3.5-inch

and capabilities or in terms of the value proposition (partially

drives) by Seagate (market leader in 5.25-inch drives).

complementary products).

Last but not least, the incumbent’s capabilities and

resources determine which of the seven strategic options for dealing with disruption are feasible for a specific company. I

38 - info - november / december 2016


FOCUS – DI SRUP T OR BE DI SRUP TE D

FULL THROTTLE How can companies best engage with start-up accelerators and the emerging tech ecosystem to tackle disruption? Ian Ellis, Director, Corporate Access, Microsoft Startup Growth Partners, offers his advice

A

s the trend for

cycles of the major banks.

start and end there. How are

element is genuine insight:

corporate innovation

In our case, the Microsoft

you going to make it work,

can the people involved

moves towards open

Accelerator programmes are

both for the start-up and for

in the programme bring

versus closed innovation

focused on the later stage

your company?

value in terms of growing

models, one of the most

of this maturity curve, where

commonly touted ideas

we can provide business

Who to trust?

among large enterprises is

and technical expertise to

The emerging technology

and do they have a strong

to get involved with start-

create high quality scale-up

ecosystem is a tremendously

global or sector perspective?

ups – often in the form of

businesses.

exciting place and there are

This will be instrumental to

many ways to get involved,

ensure the companies the

from simply setting up

accelerator works with are

working with or establishing

world-beating businesses? Have they walked the walk

an accelerator programme, in

Getting involved

order for them to stay ahead

For companies looking to use

an innovation outreach

appropriate and interesting

of the young, promising

accelerators as a pipeline for

programme, to partnering

to your own mission.

industry disruptors.

disruption, it is key to have

with an accelerator, to

a clear strategy about what

even setting up your own

understand motivations: can

are typically designed to

you will do when you find

programme or fund.

they clearly state why they

assist entrepreneurs with

interesting new companies.

Accelerator programmes

Are you there to

all the key ingredients to

Just as it has never been

Next, it is important to

are running the programme

easier to start a company,

and are the expectations with

bring a start-up into the

consume their products,

you can't throw a rock in any

the participating companies

world, including all the things

build partnerships or even

major city without hitting an

clearly aligned? For instance,

that you would expect with

acquire? Being involved

accelerator space and the

accelerators that take equity

growing a company.

to just learn is also fine,

range in quality can be broad.

may have very different

provided that you have a

Your brand is important and

motivations to those that

programmes come in all

clear strategy and don't set

it will be used as currency

do not.

shapes and sizes, from ultra

expectations at the wrong

by any accelerator that you

early-stage like Entrepreneur

level. All too often, major

get involved with, so it is

market reach necessary to

First, which often bring teams

companies approach these

important to understand who

deliver value? This isn't just

together around a concept,

situations without a clear

you are partnering with, why

about gaining customers,

to the FinTech Innovation

plan or set of processes

you/they are getting involved

but also about helping start-

Lab, which is about helping

to enable organisational

and what you can bring to

ups with guidance around

emerging companies in

involvement. While it is great

the table. How can you

product market fit and

the financial services space

for your Board to be involved,

spot the good accelerator

providing a network to test

to navigate the long sales

the conversation cannot just

programmes? The first key

new concepts. I

These days, accelerator

Finally, do they have the

Tips for engaging with start-up accelerators 1 Start with why: Think about why you are looking to engage and your broader vision and goals. 2 Due diligence: Understand who you are getting involved with and their motivations. What are you

associating your brand with and how will it be used?

3 Devil is in the detail:

Be clear and transparent about your engagement model and what outcomes

can be expected.

4 Be open: Be ready to experience new ideas and work out how to bring your organisation with you

in order to create new value for your business.

info

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Technology provides the power to disrupt How are companies using technology to disrupt their markets? Huy Nguyen Trieu, CEO of The Disruptive Group and Resident FinTech Expert at Oxford's Saïd Business School, explains

E

verything used to be cheaper. I still remember paying

And it wasn’t long ago that we saw self-driving cars as a distant

five francs for a café in Paris. Today, it’s at least €2, almost

fantasy; Uber has now started to test them in Pittsburgh.

three times more! Everything seems more expensive

today, except when you’re a tech entrepreneur. If you work in tech, everything is much cheaper – even free sometimes… Case in point: when we launched Ukibi in 1999, our first $2m was spent to buy Sun Microsystem

These examples might seem like anecdotes from the startup world or for gadget lovers, but they actually reflect one of the most important trends in our world: the emergence of technology as a new power that is disrupting markets. In numbers, this trend is undeniable. Two decades ago, the

servers and Oracle licenses. This was a necessary cost to

five largest companies in the world by market capitalisation

launch an internet business. Today, how much would it cost?

were General Electric, Shell, Coca-Cola, NTT from Japan as

Nothing, rien. Today, we would not buy any computers or pay

well as Exxon.

for expensive software licenses; we would rent all of it from

Ten years later, the telecom and food industries were

Amazon Web Services or Microsoft Azure, and be charged on

replaced by software and banking, and the top companies

a pay-as-you-go basis.

were Exxon, General Electric, Microsoft, Citigroup and

So technology is much cheaper than before. It’s also

Gazprom. And today? You guessed it. Everybody is out, and

much more powerful. Of course, we know that computers

the tech companies are masters of the universe: Apple,

are faster and faster because of Moore’s Law – which is

Alphabet (Google), Microsoft, Amazon and Facebook.

why my smartphone is as powerful as IBM’s Deep Blue, the supercomputer that beat Gary Kasparov 20 years ago at an

Using tech to disrupt

alleged cost of $100m.

How have technology companies become so dominant?

But for the last few years, the technological progress has been properly mind-blowing: only three years ago, Google’s voice recognition engine did not recognise one out of four words. Today, it understands as well as you or I…

40 - info - november / december 2016

The answer is very simple: they have a full understanding of technology, and how technology can be used to change and to disrupt markets.


FOCUS – DI SRUP T OR BE DI SRUP TE D

In some way, this is a familiar story, because there is a very

which we would like to live).

strong parallel between the impact of technology today and of

Going back to the example of my start-up, we could almost

globalisation 30 years ago. With globalisation came offshoring

say 'CAPEX is dead, long live OPEX'. This means that capital, the

and significant cost reduction from moving Western jobs

privilege of large organisations, and one of the main barriers

to lower-wage countries – it changed the way that Western

to entry for smaller competitors, becomes less relevant.

companies conducted their businesses. With technology

Technology enables disruption at a fraction of the cost.

comes automation and significant cost reduction from moving human jobs to computers. But if offshoring was, for the CEO, the equivalent of driving

That is why new challenger banks are being launched in the UK with less money than the investment I had to make in computers 15 years ago. And why, across all industrial sectors,

the carriage faster by giving vitamins to her horse, automation

hundreds of competitors are emerging – some with very

gives her a new, bizarre vehicle with an engine – in other

little resources, but that are able to make incredible, market-

words, something that she is not familiar with, seems very

changing products.

powerful, but can also be very hard to control. That is the main challenge that many CEOs face today. The

In a world where tech is power, the main threat for large organisations does not necessarily come from start-ups, but

business world was a world of horses, where the winners were

from other giants. While we know that it took more than

those with a large stable and professional jockeys. But now,

10 years for the largest money market funds to reach $100bn

some renegades have started to compete with a car – not a big

of assets, who would have guessed that Alibaba would do the

car yet, but enough to be scary – while some big horse owners

same in nine months? And then just a few months more to

are also trying to fix an engine on their carriages.

surpass JP Morgan, the third-largest bank in the world?

Changing the rules

of new entrants – small or big – who have a better grasp of

In other words, the rules of the game have changed. In the old

technology, and can therefore offer more innovative products,

world, the main levers for a CEO were money, people, brand,

but perhaps more importantly benefit from much lower costs.

distribution network, etc. Today, technology has become

Large companies are now therefore facing the threat

And that’s perhaps why the biggest companies in the world

incredibly important, sometimes more than money or people

are tech companies, because their CEOs and boards are fluent

(which of course raises many questions about the society in

in tech, and today, tech is power. I

CASE STUDY: AVIVA DIGITAL GARAGE Digital is crucial to our future success because our customers are using digital

D

igital disruption in insurance is accelerating. New

but, above all, it is how we work there that is enabling our

technology means insurers can introduce new

people to think differently. We disrupt, build fast, test and

products that change the way that people think about

learn to create great digital products for our customers.

insurance. Rapidly emerging trends in the use of data will

This is vital in what we are trying to achieve in becoming a

change not only how they engage with their customers but

digital business.’

also their role in fintech. In order to accelerate the digital transformation of

The Digital Garage also helps Aviva to attract people with different talent and skills: people working in the

our business, Aviva first established a Digital Garage (the

Garage come from all kinds of backgrounds – from gaming

building was once an actual garage) in Hoxton, London

to start-ups, tech and retail as well as insurance.

in 2015. The aim: to develop and explore how to turn

‘They are focusing on creating outstanding customer

innovative ideas into real financial products and services

experiences to help Aviva engage increasingly better with

for Aviva customers. Later that year, Aviva opened a second

customers. A fair amount of what we do is incremental but

Digital Garage in Singapore, and recently a similar space in

we are also working closely with the start-up ecosystem, as

Toronto, Canada.

a way to move our culture and innovation forward rapidly,’

‘Our Garages are like microcosms of our digital activities, where creative minds bring their best ideas and make them happen,’ says Andrew Brem, Chief Digital Officer, Aviva Digital Garage. ‘The physical space of the Garage is designed to help change the way we work. It is the layout of the building

Brem adds. Large businesses are increasingly learning from startups to become more innovative. ‘We are at the beginning of our digital journey and will continue to drive change at pace, for the benefits of our customers,’ he concludes. I JH

info

- november / december 2016 - 41


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FOCUS – DI SRUP T OR BE DI SRUP TE D

DISRUPTING REGULATION Geraldine Fabre, Partner and Head of French Group at Sherrards Solicitors, considers how start-ups have become regulatory reformers in the disruption economy

S

ince the last global financial crisis,

Disrupting regulation

For example, Uber fought over 40 legal

start-ups which solely focus

The collaborative economy is not just

battles across the world in 2014.

on sharing services have been

disrupting traditional industry; it is

on the rise. The ever-growing use of smartphones means that people are

disrupting traditional regulation. The rise of those disruptive services,

While in 2015, the EU was paying close attention to the collaborative economy, larger conglomerates are

now able to rent out their apartments,

which are based on ratings and trust,

now acquiring those start-ups and what

cars or even household appliances

require the provision of secured

initially looked like a disruptive new

with just a few taps. However, as is the

platforms for financial transactions.

model will probably end up being mixed

case with most start-ups, this sudden

Generally, it is said that the self-

into existing models and embraced by

rise of popularity has not been without

policing approach has worked well

incumbents. On the regulatory side,

hurdles. Some services have been

so far. However, things can and do

some industries are pointing the way by

under the spotlight for falling foul of

go wrong occasionally and this has

remodelling the definition of consumer

regulations of the industries that they

forced those economies to take steps

protection, and finding ways to reduce

operate in.

to protect themselves and their users

the need for state intervention.

By far, the most prominent sharing

to ‘get around’ the tissue of legislation

As more people participate in

services are those based around money

which was aimed at more traditional

networks of sharing, the cost for this

(Bitcoin), financial services (P2P, or

economies.

may well be the sharing of our personal

peer-to-peer, lending), accommodation

However, regulators are not always

data on networks (such as Facebook)

and cars. Concerns have been raised

impressed. The main issues are that

and to providers that will become more

in relation to tax and whether all the

often those economies appear to

and more concentrated.

Disruptors have been kept busy. Uber fought over40 legal battles across the world in 2014 income received is being declared, as

benefit from unfair competition if

well as general regulatory issues such as

they do not have to abide to the rules

the next decades makes it increasingly

insurance and legal liability.

applicable to traditional market players.

less likely that regulators will be able to

For example, there is the controversy

protect the public effectively. Significant

of development and investment has

created by Airbnb around the world

growth in areas such as robotics,

fallen, allowing smaller firms to enter

with rules taxing tourism, safety rules

virtual reality, nanotechnologies and

the market. In addition, the UK P2P

and requirements limiting zones where

biotechnologies will make it difficult to

lending industry has also benefited from

those short-term accommodations

ascertain a position against the negative

a unique level of government support.

are authorised. Even if it is true that

impacts of the disruptive economies,

The gain in popularity and use of P2P

regulatory development has lagged

and even more than before, the timing

lending and investing services marks

relative to the speed of development

of the regulations will be a primary

a wider divergence from traditional

of the collaborative economy, they

concern for policy makers as well as

banking infrastructure.

have been kept busy with legal battles.

entrepreneurs. I

Over the past 10 years, the cost

The anticipated level of innovation in

info

- november / december 2016 - 43


CHANGE IS THE ONLY CONSTANT What does the perpetual cycle of disruption mean for businesses? David Cather, Joaee Chew, Sudeshna Sen and Yann Bonduelle from PWC’s Strategy& unit offer a perspective on how disruption can become an integral part of your strategy ‘Resistance is futile!’ That’s what Star Trek taught us, inspiring

of disruptive start-ups from Lending Club and Funding Circle

the first design of the mobile phone and completely changing

in the loans market; to Nutmeg offering a simple transparent

the way we live. In recent years, what was often science

platform for investors; and services like Transferwise, which

fiction has become commonplace, with terms like ‘disruptive

make transferring money abroad much cheaper.

innovation’ and ‘digital Darwinism’ becoming popular. In this

As a consequence, banks have started to work more

new industrial revolution, solid business models are rapidly

closely with innovative start-ups and incubators, investing in

made obsolete. As once lucrative text messaging becomes

them as corporate venture capitalists, or even buying them

a lost revenue stream for mobile operators because of free

outright. Citigroup has invested in 13 start-ups between

messaging apps, how can companies adapt to the future if

2011 and 2015 while Goldman Sachs backed 10. This is not limited to banking alone: in the hospitality business, for

Double disruption – i.e. disrupting the disruptor – is the new norm of the day

example, AccorHotels acquired OneFineStay, a peer-to-peer

even relatively new technologies can be disrupted?

According to PwC’s Global Data and Analytics Survey 2016, only

Disruption does not have to spell the end for established

accommodation service.

Threat or opportunity? 25 per cent of C-suite leaders and senior executives making

businesses. In fact, it can be turned into an opportunity, like

big strategic decisions feel motivated by the ability to disrupt

Apple did with the iPad, creating a new market category after

their own industry or another industry.

being in the Mac vs PC war for years. However, for companies to define a new market in

CEOs clearly see disruption not just as a threat but also as a source of opportunities. For example, the construction

response to disruption, they need to define a clear vision and

industry, valued at $328bn in France and $190bn in the UK, is

operationalise the strategy, avoiding the strategy-to-execution

full of slow, labour-intensive work, making it a prime target for

gap to which most big organisations fall victim.

disruption.

A start-up, however unique, will succeed only if it focuses

Techniques such as digital fabrication, pioneered by

on making its idea the driving force of everything it does.

Lawrence Sass, Associate Professor of Architecture at MIT,

Similarly, a large company can survive the attack of a disruptive

could herald computer-designed buildings capable of being

newcomer if it is able to reduce the strategy-to-execution gap

3D-printed as a sequence of precision-cut interlocking parts.

and take advantage of being the incumbent.

Adapt or die!

These compact parts can then be delivered at a lower cost and assembled on-site without the need for heavy tools or manual cutting of parts. Why not take this a stage further and

Undisrupted for centuries, today banking is being challenged

take the printer to the building site? 3D printing techniques are

by the start-up world. Antony Jenkins, the erstwhile CEO of

showing promise globally, including a 3D-printed apartment

Barclays, has said that banking today faces an ‘Uber moment’.

building by Chinese developer WinSun.

Banks have historically been profitable due to their easy access to a variety of revenue streams. According to the PwC Global FinTech Survey, two-thirds of

Behrokh Khoshnevis, Professor at University of Southern California, estimates that the time taken to build a customdesigned house could be reduced to 20 hours, while CNET, a

the respondents (mostly bankers) ranked pressure on margins

technology news provider, estimates that labour costs could

as the top FinTech-related threat. Banks face the challenge

be reduced by 50-80 per cent.

44 - info - november / december 2016


FOCUS – DI SRUP T OR BE DI SRUP TE D

Change is the only constant

lorries? Will their reign be short as we all get 3D printers and

Disruption, even double disruption, is nothing new, but the

delivery becomes the download of a design, or will virtual

pace of disruption has incrementally increased.

reality remove the need to physically even possess some

The industrial revolution was made possible because canals disrupted horse-drawn carts. The price of coal in

goods altogether? The only certainty is that, to survive, companies have

Manchester halved when the Bridgewater canal opened

to be able to change, putting disruption at the forefront of

in 1761, making transportation a catalyst to disruption in

their strategy. The rusting infrastructure of banks reminds us

manufacturing. Today, visiting the canals of Manchester,

that what was once the backbone of the new economy has

Liverpool and Birmingham no longer finds industrial cargoes

also been disrupted, and that, given time, all disruptors are

as a mainstay; only holiday makers, ironically seeking an

disrupted themselves.

escape from their working lives. For 20 years, between 1806 and 1826, the average profits

Disrupt in a market where you have the right capabilities, because once you embed disruption in your strategy, you are

of the Bridgewater canal were growing 13 per cent per annum.

signing up for constant re-imagination, constant re-innovation

These fell once the Liverpool and Manchester Railway opened,

and change.

but in a lesson from history, Lord Stafford, the canal-owner, was also a major investor in the railway. The railways that replaced the canals dominated for over

Disruption is not a nice-to-have project. Signing up for disruption in your strategy means you are signing up for change now – and forever. Are you ready? I

a century, but lost out ultimately to lorries. Will drones disrupt

The only certainty is that, to survive, companies have to be able to change, putting disruption at the forefront of their strategy

info

- november / december 2016 - 45


FOCUS – DI SRUP T OR BE DI SRUP TE D

When the disruptors are disrupted Double disruption is the new norm of the day, write Diane Mullenex and Annabelle Richard, Partners at Pinsent Masons

S

ince Clayton Christensen defined the concept of

• Invest in developments. It is expensive, but it could make

disruptive innovation in 1997, it has become a term used

the difference. If one can identify the technology that will truly

frequently in business. Today, it is generally used to refer

be disruptive, such investment will be worthwhile.

to these actors of the digital economy that profoundly change

• Make the most of data. Data is said to be the new black

the market in which they operate, either through technology or

gold. It can be less expensive to collect data than to develop

through an innovative business model or both.

technology, but it does not mean there is no cost. Data will also

For the last 20 years, every sector of the economy has been

be key to the first two points, above.

disrupted. From the tourism industry to the entertainment

A disruptor has achieved its full potential when it becomes

industry including every day activities such as dating, eating,

a market leader. However, as difficult as it may have been to

reading, etc. Interestingly, such disruption often comes from

reach this market leading position, it may be even more difficult

the outside. Players of other industries enter a market to

to stay in that position.

revolutionise it, for example the breakthrough on autonomous cars first came from Google and not by Mercedes or Toyota.

Double disruption Today's disruptors can easily be tomorrow's disrupted. But should we call that phenomenon ‘double disruption’ or simply market evolution and exponential innovation? It is probably a little bit of both. Indeed, there are plenty of examples where industries have been revolutionised more than once. Disruptors should expect to be disrupted and should, more than others, be able to anticipate it. Nevertheless, once a market has been disrupted, all actors will endeavor to seize these new opportunities and compete with the disruptor on its own field. It will involve market evolution and innovation. But one should not confuse evolution and innovation with disruption. If you have not taken the time to read Elon Musk’s Master Plan Part Deux, you should. It is a very good example of a

But what are the keys to disruption?

disruptor that plans to keep its disruptive pace and even plans its own disruption.

• Understanding the market and identifying where

The Tesla-SolarCity combination disturbs many, including

value lies for customers. For that purpose, one should

seasoned investors, in its ambition to disrupt both the

not overestimate the power of technology – the evolution

automotive (and even the transportation industry) as well as

of business models are at least as important (if not more) to

the energy industries.

disruption. • Rethink your business model. Nothing should be taken for

Double disruption is a reality but nothing more than the cycle of economy and life.

granted and one should be ready to question all components

However, on many markets, the period between successive

of your model. All assumptions should be challenged; a

cycles of disruption are getting shorter. The pace of disruption

disruptor sees things from a different perspective. He looks

is following the pace of innovation. No doubt, we will shortly

at other industries and see how they could be borrowed and

have examples of triple or even quadruple disruption. I

adapted to his own. Here lies his strength.

Double disruption is a reality but nothing more than the cycle of economy and life

46 - info - november / december 2016


Brexit

Patent Strategies

Business of Health

Corporate Risk & Reputation

Smart Infrastructure

Connected Manufacturing

Fixing Tech

Freedom to Succeed More than Lawyers. Confident in enabling your business objectives. New technologies and operating models are disrupting and transforming markets. Our Advanced Manufacturing & Technology lawyers across our 21 offices help businesses seize market opportunities. Use the law to achieve the freedom to succeed. Pinsentmasons.com Pinsentmasons.com/freedomtosucceed Diane Mullenex Head of International Telecoms, Gaming & Gambling Diane.Mullenex@pinsentmasons.com French Chamber of Commerce Member © Pinsent Masons LLP 2016.

Frédéric Ichay Partner Frederic.Ichay@pinsentmasons.com French Chamber of Commerce Member


[6723/16]

ARRIVING CENTRE STAGE IN 2H17*

PARIS

*best travel time

EUROSTAR.COM


YVES KLEIN

LIFESTYLE – TATE LIVERPOOL

B

est

known

for

his

signature dazzling purepigment

International

Klein Blue (IKB), this is

Yves Klein’s first solo exhibition at a UK museum in more than 20 years. The French artist’s artwork is being exhibited at the Tate Liverpool, paired with the first UK retrospective by Polish artist Edward Krasinski. One of the most influential figures of the post-war era, Klein’s career was marked by extraordinary creativity and a bold attitude to art and life that was pivotal to later movements – from pop art to performance art and beyond. Around 40 major works by Yves Klein are being exhibited at the Tate Liverpool Gallery, including 12 of his distinctive ultramarine IKB pieces. INFO editor Jason Hesse caught up with

the

exhibition

curator,

Darren Pih, to find out more.

What has made Klein such a respected artist? Yves Klein is really interesting. Born in Nice in 1928, he took the European art world by storm,

embracing painting, sculpture, performance, film and architecture before his untimely death at the age of 34 from a heart attack. He was really only working for seven years, but he breathed life into art following the Second World War. He really set a tone for the future, including pop art and performance art and many other future genres.

What is the story behind Klein’s IKB monochrome paintings?

Untitled Anthropometry, (ANT 52) (1960)

At the age of 19, while lying at the beach in the south of France, Klein ‘claimed’ the sky, which he identified as the perfect representation of infinite, immaterial space. It had no limits. Over the rest of his short life, he produced over 200 IKB canvasses, which expressed absolute freedom and infinite space, free from representation and materiality. They are portals into the unknown. There was a show in 1957 where he presented 11 identical IKB paintings and this was his inauguration of the ‘blue revolution’ as he saw it. In some ways, this exhibition is an homage to that moment.

How did you decide to pair Klein with Krasinski? Krasinski was born in 1925, around the same time as Klein, and they both began exhibiting at the same time. They had parallel careers, and were both concerned with exploring space and challenging and choreographing our experience of art. Both Krasinski and Klein were pioneers of minimal, conceptual and installation art that developed in the 1960s. I Until 5 March 2017 / Open daily 10am to 5.50pm / Full price £10

info

- november / december 2016 - 49


LIFE S T YLE – E XHIBITION S

Compiled by Mwenges yali Syaus wa

©Tate

T H E WH I T WO RT H, M A N CH ES T ER Andy Warhol at the Whitworth Featuring a selection of the 232 works of the late great pop artist’s work, Andy Warhol at the Whitworth explores themes of conflict and destruction, particularly in relation to Warhol’s own brush with death after being near-fatally shot in 1968. Some of his later works, such as Gun (1984), Dollar Sign (1981) and Camouflage (1986) will be on display. As one of the most iconic and widely-replicated artists of the 1960s, Warhol’s distinctive style lends itself well to such a large-scale exhibition, with his frequent collaborations with various muses, such as Edie Sedgwick, Mick Jagger and Debbie Harry, making him pop art’s most noteworthy pioneer. Warhol’s work presents a unique depiction of the American Dream. Whether you are already well acquainted with the artist, or simply curious, this is a Andy Warhol, Skulls (1976) . Acrylic paint and silkscreen on 6 canvases

must-see event. I Until 16 April 2017 / Open Monday to Wednesday from 10am to 5pm, until 9pm on Thursdays / Free admission

VI C TO RI A A N D A L B ERT M USEU M , LO N D O N

How have the finished and unfinished revolutions of the late 1960s changed the way that we live today and think about the future? More than 350 objects are displayed at this major exhibition at the V&A that show the creative, social and legal outputs of revolutionary new ways of living: underground magazines from Oz to the International Times; a shopping list written behind barricades during the 1968 Paris student riots; a rare Apple 1 computer; an Ossie Clark costume for Mick Jagger and the suits worn by John Lennon and George Harrison on the cover of Sgt. Pepper’s Lonely Hearts Club Band among others. You Say You Want A Revolution shows how a whole You Say You Want a Revolution? Records and Rebels 1966 - 70 generation shook off the confines of the past and their parents, radically revolutionising the way that they lived their lives. Music is played through Sennheiser headsets, including interviews with Yoko Ono, Stewart Brand and Twiggy, plus psychedelic light shows and seminal films including Easy Rider and 2001: A Space Odyssey, to create a fully-immersive and dramatic audiovisual experience. I Until 26 February 2017 / Open daily from 10am to 5.45pm, until 10pm on Fridays / £16

ROYA L AC A D E MY O F A RTS, LO N D O N Abstract Expressionism Second World War and the years of free jazz and Beat poetry, a group of artists broke from accepted conventions to unleash a new confidence in painting. Often monumental in scale, their works are at times intense, spontaneous and deeply expressive. At others, they are more contemplative, presenting large fields of colour that border on the sublime. Abstract Expressionism brings together some of the most celebrated art of the 50 - info - november / december 2016

past century, offering the chance

© Estate of David Smith/DACS, London/VAGA, New York 2016

In the ‘age of anxiety’ surrounding the

to

experience

collective

the

impact

powerful

of

Pollock,

Rothko, Still, de Kooning, Newman, Kline, Smith, Guston and Gorky as their works dominate the Royal Academy’s galleries with their scale and vitality. I Until 2 January 2017 / Open Saturday David Smith, Stars Cage (1950). Painted and brushed steel, 114 x 130.2 x 65.4cm

to

Thursday

from

10am to 6pm, until 10pm on Fridays / Full price £19

© Victoria and Albert Museum, London

You Say You Want A Revolution? Records and Rebels 1966-1970


LIFE S T YLE – E XHIBITION S

Compiled by Mwenges yali Syaus wa

© Tate Photography

TAT E M O D ERN, LO N D O N Philippe Parreno: Anywhen

French avant-garde artist Philippe Parreno has transformed the Tate Modern’s Turbine Hall into an immersive experience, challenging visitors’ perception of time and space. Combining aspects of chance and control, the sequences of events – sound, lighting, flying objects and film – are triggered by software that is informed by microorganisms which react to and activate elements of the commission through a bioreactor. Anywhen is a site-specific exhibition that changes throughout the day and that will evolve during the Installation view of Hyundai Commission 2016 : Philippe Pareno, Anywhen 2016 six-month period of the commission. The exhibition is conceived as an automaton which guides the public through a constantly-changing play of moving elements, light configurations and sound environments. I Until 2 April 2017 / Open Sunday to Thursday from 10am to 6pm, Friday to Saturday until 10pm / Free admission

ROYA L O PER A H O USE, LO N D O N Clara, a young girl, creeps downstairs on Christmas Eve to play with her favourite present – a nutcracker. But a mysterious magician, Drosselmeyer, is waiting to sweep her off on a magical adventure. After defeating the Mouse King, the Nutcracker and Clara travel through the Land of Snow to the Kingdom of Sweets, where the Sugar Plum Fairy treats them to an amazing display of dances. Back home, Clara thinks she must have been dreaming – but doesn’t she recognise Drosselmeyer’s nephew?

Pyotr Il’yich Tchaikovsky’s Nutcracker score was commissioned by the director of the Russian Imperial Theatres, following the resounding success of The Sleeping Beauty in 1890. Based on a fairytale by E.T.A. Hoffmann, The Nutcracker was first performed in 1892 in St Petersburg. More than 120 years later, the Royal Ballet celebrates Peter Wright’s 90th birthday with his much-loved production of this beautiful classical ballet. The perfect show to celebrate the festive season. I Until 12 January 2017 / From £6 up to £120.

The Nutcracker. Lauren Cuthbertson as The Sugar Plum Fairy

BA N K O F EN G L A N D M USEU M , LO N D O N Capturing the City: Photography at the Bank of England Viewed from the outside, the Bank of England can appear as a formal establishment. But beyond its austere stone walls lies a hive of activity incorporating a remarkable architectural history representing the dynamism of the institution, a diverse range of occupations and a vibrant social history. The Bank’s archive photography collection provides a fascinating record of the Bank, its buildings and staff since the Victorian era. The exhibition focuses on the past, exploring the history of the photography medium, which has come to dominate the world around us. The display provides an opportunity to see images of the Bank not generally accessible to the public as well as artworks and artefacts not usually on display. I Until March 2017 / Open Monday to Friday from 10am to 5pm / Free admission

© Bank of England

© ROH

The Nutcracker

Dealing Room, 1965

info

- november / december 2016 - 51


NEW FUNDRAISING CAMPAIGN For more information visit: www.institut-francais.org.uk


LIFE S T YLE – BOOK S

THESE BOOKS, RECENTLY PUBLISHED IN ENGLISH, WERE SELECTED BY THE FRENCH INSTITUTE

2084: THE END OF THE WORLD

TRYSTING

by Boualem

by Emmanuelle

Pagano Other Stories Translated by Jennifer Higgins and Sophie Lewis Original title: Nouons-nous (2013)

Sansal Published by Europa Editions Translated by Frank Wynne Original title: 2084: la fin du monde

Published by And

(published in 2015)

A tribute to George Orwell’s 1984 and a cry of protest against

Grains of sand, bridges, shampoo, a bike, board games, yoga,

totalitarianism of all kinds, Sansal’s 2084 tells the story of a

sellotape, birds, balloons, tattoos, wandering hands, tweezers,

near future in which religious extremists have established an

maths, fish, letterboxes, puppets, a vacuum cleaner, a ball of

oppressive caliphate where autonomous thought is forbidden.

string – and love. In this fiction of you’s and me’s, of hims and

In the year 2084, in the kingdom of Abistan – named after the

hers, Pagano choreographs the objects, gestures, places, and

prophet Abi, earthly messenger of the god Yolah – citizens

persons through which love is made real. Xavier Houssin from

submit to a single god, demonstrating their devotion by

Le Monde says: ‘Trysting is an album of destinies. They each have

kneeling in prayer nine times a day. Autonomous thought has

their décor. They talk of first frosts, of the wood that must be

been banned, remembering is forbidden, and an omnipresent

brought in, of the huge rubbish tips of life, of the disorder of

surveillance system instantly informs the authorities of every

houses. Of beds that are no longer made because they are too

deviant act, thought, or idea. The kingdom is blessed and its

often occupied. Of the warmth of being at home and of finding

citizens are happy, filled with a sense of purpose and piety.

oneself. This essential truth of what we are. Emmanuelle Pagano

Those who are not – the heretics – are put to death by stoning

sends every reader back to familiar territory. Her book is full of

or beheading in city squares. But Ati has met people who think

discreet and recognisable emotion.’ Trysting is the winner of the

differently; in ghettos and caves, hidden from the authorities,

English Pen Award. I

exist the last living heretics and free-thinkers of Abistan. Under their influence, Ati begins to doubt. He begins to think. Now, he will have to defend his thoughts with his life. 2084 is the winner of the French Academy Grand Prix. I

BIRD IN A CAGE by Frédéric

BLOOD WEDDING by Pierre

Lemaître

Published by Maclehose

Press Quercus Wynne Original title: Robe de marié (2009)

Dard

Published by Pushkin

Vertigo Bellos Original title: Le monte-charge (1961) Translated by David

Translated by Frank

‘It felt like the slipknot on a rope round my chest was being tightened without pity.’ Trouble is the last thing Albert needs. A gripping standalone psychological thriller about marriage,

Travelling back to his childhood home on Christmas Eve to mourn

manipulation and murder written by the author of Alex. Sophie

his mother’s death, he finds the loneliness and nostalgia of his

is haunted by the things she can’t remember - and visions from

Parisian quartier unbearable… Until, that evening, he encounters a

the past she will never forget. One morning, she wakes to find

beautiful, seemingly innocent woman at a brasserie, and his spirits

that the little boy in her care is dead. She has no memory of what

are lifted. Still, something about the woman disturbs him. Where

happened. And whatever the truth, her side of the story is no

is the father of her child? And what are those two red stains on

match for the evidence piled against her. Her only hiding place

her sleeve? When she invites him back to her apartment, Albert

is in a new identity. A new life, with a man she has met online.

thinks he’s in luck. But a monstrous scene awaits them, and he

But Sophie is not the only one keeping secrets… For fans of Gone

finds himself lured into the darkness against his better judgment.

Girl and Lemaitre’s own internationally bestselling Alex, Blood

Unravelling like a paranoid nightmare, Bird in a Cage melds

Wedding is a compelling psychological thriller with a formidable

existentialist drama with thrilling noir to tell the story of a man

female protagonist. I

trapped in a prison of his own making. I

info

- november / december 2016 - 53


WEEKEND IN...

Edinburgh Our new Travelogue focuses on 'staycations', to offer you details of how to spend a great weekend in the UK

Scotland and France have a very long history together. The two nations first signed the ‘Auld Alliance’, or ‘Vieille Alliance’ in French, in 1295. Within Scotland, Edinburgh is a favoured destination for many, who visit to take in the city’s rich medieval history, to climb Arthur’s Seat (pictured), visit its many museums – or, indeed, to be entertained in its world-famous comedy clubs.  How

to get there:

… go for an evening drink:

The quickest way is by air. There are more than 300 flights

• Looking for splendid cocktails in a grandiose venue? The Dome

between London and Edinburgh every week, and tickets start

does it all and is praised by Edinburghers and tourists equally

as low as £20. Average flight time is 1h10min. You can also

• Located in Old Town, The Devil's Advocate is the perfect

drive to Edinburgh fairly easily: from London, it is about a

place for whisky lovers and newbies to Scotland’s national drink.

seven-hour drive, straight up the M1 and M6 motorways However, the most fun way is surely by overnight train, on

… eat a memorable dinner:

the Caledonian Sleeper. With an on-board restaurant and

• At the aptly named Number One (at The Balmoral Hotel).

(relatively) comfortable cabins, you can leave London on Friday

This Michelin-starred restaurant offers Scottish traditional

at 11pm and wake up in Edinburgh at 7am, rested and ready

meals re-invented with a gastronomic twist. But note that

for the weekend. Tickets begin at £35 for a reclinable standard-

advanced booking is required

class seat, or £130 for a bed in first class. (www.sleeper.scot)

• Scran & Scallie offers authentic Scottish food (‘scran’) paired

 What

to read on your trip?:

with traditionally-brewed ales in a cosy gastro-pub setting • In the mood for red meat? Steak is Edinburgh’s best pick.

• Arthur Herman’s How the Scots Invented the Modern World.

This dimly-lit, quiet restaurant offers the perfect intimate

This witty and factual non-fiction book takes you on a journey

atmosphere to take a loved one.

through the Scots’ contributions to the world • Set in Edinburgh, Muriel Spark ‘s The Prime of Miss Jean

… catch a show:

Brodie, is a local classic. The internationally acclaimed novel

• End your night by blowing off steam at The Stand Comedy

depicts the rise and fall of an unconventional teacher.

Club, where witty comedians perform seven days a week in

Where to: … have breakfast:

this perfectly laid-back stand-up comedy club.

... bed down for the night:

• The Edinburgh Larder is best for savoury breakfast classics

• Jump on the opportunity to stay in one of Edinburgh’s

in a lovely trendy and luminous venue

landmarks. The aforementioned Balmoral Hotel is an

• Or head to Hamilton’s to start the day in a cosy atmosphere.

outstanding city castle that provides a service as grandiose as

Its hearty Scottish breakfast is revered by locals and is widely

its premises

recognised as the best Scottish breakfast in the city

• Alternatively, The Chester Residence is ideal to feel at

• The Colonnades (at The Signet Library) offers a late brunch

home. These luxurious apartments are ideally located in the

in an historic library-monument.

city’s West End district. I MS

info

- november / december 2016 - 55


LIFE S T YLE – E AT, DR INK , S TAY

La Belle Assiette finds investor to diversify into catering

L

a Belle Assiette has sold a minority stake to Elior Group, a multinational commercial catering and foodservice company. The start-up will use the investment in order to accelerate its growth in the corporate catering market. The valuation and amount of investment are undisclosed. Previously, La Belle Assiette enabled individuals to book their catering needs online. But with the launch of its ‘La Belle Assiette for Business’ product, it has now entered the corporate catering market, offering business customers a tool to shift their entire catering purchasing online, with a centralised access to all the best local caterers. The company currently has a network of more than 700 independent caterers who are signed up to the new service. The catering industry is undergoing a period of disruption, as online platforms challenge traditional models. Estimated at €18bn in Europe alone, the catering industry has previously relied heavily on word of mouth and involves laborious booking processes. By offering an online platform tailored to this market, La Belle Assiette hopes to replicate the success it has achieved in the private chef market, the company said. ‘The relationships between start-ups and large corporations are now essentially to the vitality of tech ecosystems,’ said Stephen Leguillon, CEO of La Belle Assiette. ‘The agreement that we have announced with Elior is great news for our future growth, especially thanks to their incredible expertise in B2B catering services, which we will tap into. It will provide a strong acceleration of our corporate activities.’ I www.labelleassiette.co.uk

PAUL wins four Great Taste Awards

Chivas Regal launches its first blended malt Scotch whisky

Claridge’s appoints first ‘Choreographer in Residence’

P

C

C

for its Pain de Campagne 400g, Pain

of Chivas. Chivas Regal Ultis uses only

Marius

aux Deux Olives 400g, Millefeuille and

five of the company’s most precious

professional ballroom and Latin dancer,

Framboisier

AUL, the French bakery run by entrepreneur Maxime Holder, has

been awarded four Great Taste Awards

patisseries.

hivas Regal, part of Chivas Brothers, has launched the first blended malt

Scotch whisky made from the House

laridge’s,

the

five-star

central-

London Mayfair hotel, has appointed

its first ‘Choreographer in Residence’. Caluser,

an

award-winning

Established

signature single malts from Speyside,

will help couples planning a wedding at

in 1994 by the Guild of Fine Food,

Scotland. From millions of casks in the

Claridge’s with the choreography of their

the awards champion ‘genuine food

Chivas Brothers inventory, less than

first dance. Following an introductory

people who care about the quality of

1 per cent has been hand-selected to

lesson in a private dance studio, guests

food and drink they produce’. Judges

create the new Scotch whisky. ‘This

will be able to conduct a final rehearsal

assess 10,000 entries in a series of blind

is a truly momentous occasion,’ said

in Claridge’s art deco ballroom, to

tastings to decide on the winners. ‘As the

Richard Black, Chivas Regal Global

practice their moves. ‘Claridge’s has

tastings are blind, consumers know that

Brand Director. ‘Chivas Regal Ultis

long been synonymous with hosting

the winners have been honoured for

represents the essence of Chivas Regal

the most glamorous weddings and I

great taste alone, and not on packaging

and is a fitting tribute to our legendary

am thrilled that we are partnering with

or marketing,’ said the company in a

craftsmen of the past, with recognition

such a renowned choreographer,’ said

statement. ‘So you can understand why

of the luxury quality of our Scotch whisky

Mathilde Maitre, Claridge’s Director of

we are so thrilled.’ I www.paul-uk.com

portfolio.’ I www.chivas.com

Events. I www.claridges.co.uk

56 - info - november / december 2016


LIFE S T YLE – CHE E SE & WINE

VACH ERI N MONT D’O R by La Cave à Fromage Food, cheese and mathematics are not

This rich cheese is made

very often associated; but nature has

according to very strict regulations:

always made exceptions that prevail

for example, during the winter

through the centuries.

season,

when

the

cows

are

On average, a cow will eat between

brought down from Alpage and

60 to 80kg of grass in order to produce

into farm buildings, the farmers

40L of milk per day. This, in turn can be

are only allowed to feed them with

used to make 4kg of cheese. Without

hay obtained from summer crops

taking into consideration any human or

(not grass), and it needs to be

other structural costs, you soon realise

naturally kept, not fermented. This

that the ratio of raw material to finished

is to ensure the product's quality.

product does not give a very productive

Circled with spruce and kept

output. This helps to explain the higher

in a wooden box, the soft, runny,

price of artisan foods.

delicate,

Vacherin

Mont

d'Or

Being a seasonal cheese, made only

– a little winter jewel – is best

between 15 August and 31 March of

savoured warmed in its original

every year, Vacherin Mont d’Or reflects

packaging and eaten like fondue.

this very well.

I by Eric Charriaux

E: eric@cheese.biz T: +44 (0)845 108 8222 W: www.la-cave.co.uk

TO BUY YOUR CHEESE, VISIT LA CAVE A FROMAGE SHOPS 24-25 Cromwell Place, 148-150 Portobello Road, Kensington, London SW7 2LD Notting Hill, London W11 2DZ

34-35 Western Road, Hove, Brighton BN3 1AF

J U R AN ÇON by Wine Story A Vacherin Mont d’Or is a creamy and fruity cheese with a strong finish, which I usually enjoy eating on toasted traditional French bread, such as a ‘pain de campagne’. The crispness of the bread complements the soft texture of the cheese. To pair the Vacherin with a wine, we need something that has a minimum of acidity, to match the high fat content and richness of the creamy cheese, but that is also not overly dry or acidic. It requires a good level of fruit and ripeness that will marry the sweetness of the Vacherin – this is an aromatic cheese that requires a wine to match its personality. My ideal wine would be white, such as a dry Jurançon, where the grapes are harvested just before they are over-ripe, producing a fruity but dry white wine. The Cuvée Préciouse (blend of Petit and Gros Manseng and Courbu grapes) from the Domaine de Montesquiou manages to get the right balance between maturity and freshness, between fruity and acidity, to echo the sweetness and richness of the cheese. The Jurançon brings you to the roots of the Pyrenées, but any mountain wine – such as Altesse from Savoie or Chardonnay from the Coteaux du Jura – can be paired with this great cheese. When the Vacherin is a few weeks old and has developed a stronger taste, you can also try it with a red blend of Syrah and Grenache grapes, such as an aromatic Languedoc from the Terrasses du Larzac area, for example. I by Thibault Lavergne TO ORDER MICHELIN-STYLE WINES TO DRINK AT HOME, CONTACT: E: thibault@winestory.co.uk T: +44 (0)7921 770 691 W: www.winestory.co.uk


New

Renault CLIO Seduction never ends

Integrated 7� touchscreen with navigation Automatic climate control Rear parking sensors The official fuel consumption figures in mpg (l/100km) for the New Clio Dynamique S Nav dCi 90 S&S ECO are: Urban 85.6 (3.3); Extra Urban 91.1 (3.1); Combined 88.3 (3.2). The official CO2 emissions are 82g/km. EU Directive Regulation 692/2008 test environment figures. Fuel consumption and CO2 may vary according to driving styles, road conditions and other factors.


at the chamber

T

he French Chamber has had

Bermann, French Ambassador to the UK,

intelligence for Franco-British businesses;

a busy ‘rentrée’ so far, packed

as well as The Rt Hon Edward Llewellyn

our magazine INFO publishes unique

with sold-out events, forum and

OBE, British Ambassador to France, as our

content tailored to your business needs;

club sessions – and this is set to

guests of honour.

and we run a business consultancy and

continue, with two of our biggest events

It has never been more important to

being held in November: the Franco-

highlight the strong links between Britain

British Conference and the Franco-British

and France. Throughout the autumn,

We are able to organise all of this

Business Awards.

we have actively monitored what impact

thanks to the support of the Chamber’s

company set-up service dedicated to French businesses interested in the UK.

The theme of the conference, Disrupt

Brexit is having on Franco-British relations:

Board of Directors, who regularly dedicate

or Be Disrupted, is particularly relevant

we have launched a Brexit Hub on our

their time to helping the Chamber

today. On 21 November, we will welcome

website, are launching a Brexit Forum

remain the largest foreign Chamber of

an incredible line-up of speakers at One

in the new year, and are organising an

Commerce in the UK. With that in mind,

Great George Street who will further

evening with Carolyn Fairbairn, Director

I am delighted to announce that Tanuja

dissect the topic of disruption and explain

General of the CBI, at the French Residence

Randery, Zone President UK and Ireland

why companies cannot afford to sit idly

on 24 January. Who better than the head

at Schneider Electric, has recently joined

and be disrupted by others. Now is the

of Britain’s leading business organisation

the Board. Her expertise will be a valuable

time to act!

to tell us about how the EU Referendum

addition to a Board that could be envied

Some of the best and most innovative

has affected and will impact businesses

by many a CAC 40 firm!

examples of this will also be showcased at

over the long run? I strongly encourage

the Franco-British Business Awards, held

you to attend.

As the year comes to a close, we need to approach 2017 with a renewed vigour

on 30 November at The May Fair Hotel.

Many view the Chamber as primarily

and enthusiasm. I hope that the Chamber

The event, now in its 16th year, celebrates

a way to network with other business

will continue to provide you with the

the accomplishments of French and British

leaders, but we are so much more: the

companies of all sizes, and we will have

events we organise and the information

inspiration you need to make next year a success. I FG

the pleasure to welcome HE Ms Sylvie

we have and give access to provides

info

- november / december 2016 - 59


AT THE CHAMBE R – NE WS

Digital Innovation and Transformation Forum to launch in November

A

s part of its strategy to focus on digital transformation, the

digital and innovation leaders, such as chief digital officers, chief

French Chamber is launching a Digital Transformation &

marketing officers, heads of innovation, heads of strategy at large

Innovation Forum this November. Chaired by Christophe Chazot, Group Head of Innovation at

corporates as well as CEOs in charge of digital transformations. It will also welcome start-ups with know-how in the field.

HSBC and Lucien Boyer, Chief Marketing Officer at Vivendi, the

Its first session will be a brainstorm on 23 November to

new Forum will welcome members on a regular basis to look at

discuss its future agenda, the frequency of sessions, themes,

how innovation and digital themes are changing the way that

speakers and more.

businesses work.

‘Thomas Watson, the President of IBM, said in 1943, “I think

‘Tackling innovation and digital transformation has now

there is a market for maybe five computers.” It is to avoid such

become a question of life or death for most businesses,’ said

bad predictions that we are creating the French Chamber’s

Co-Chair Lucien Boyer, commenting on the creation of the new

Digital Transformation and Innovation Forum,’ added Co-Chair

Forum.

Christophe Chazot.

‘Technology, new platforms and models are literally

This new Digital Transformation & Innovation Forum will

revolutionising the world we’re living in and the way that people

strengthen the existing portfolio of nine Forums and Clubs,

engage with content or consume products and services. It is

which focus on issues and sectors such as human resources,

now time for all stakeholders to embrace this shift, to gain

cross-cultural relations, climate change, finance, start-ups and

agility and drive new revenue streams.’ The Forum is targeting

SMEs and luxury, among others. I

Hats off to... BERTRAND MICHAUD, Director General of Hermès UK, has been made an Officer of France's highest order, the Légion d'honneur. He was decorated at a ceremony hosted by HE Ms Sylvie Bermann, French Ambassador to the UK, in recognition of 'a brilliant career showcasing French excellence across the world'. He was also commended for his engagement with the French community, including in Asia and the Middle East. In the UK, Michaud has become one of the best-known French business leaders: in addition to being an Advisory Councillor of the French Chamber, he is also a Governor of the Lycée Internatinonal Charles de Gaulle. DAME CAROLYN MCCALL DBE, CEO of easyJet and Board Director of the French Chamber, has also been decorated with the Légion d'honneur, as a Knight. She received the honour in recognition of the creation of hundreds of sustainable jobs and for placing France and the UK at the heart of the easyJet European network. 'This honour is the result of Carolyn and her team's efforts, which have resulted in economic and industrial benefits for France and the UK,' said HE Ms Sylvie Bermann. 'It is also for her invaluable support to women, particularly to female pilots, that France honours her today.' MAXIME HOLDER, President of PAUL International and Advisory Councillor of the French Chamber, has also been made a Knight of the Légion d'honneur. His award recognises 'an incredible career which has contributed to the export of French food across the world'. Upon awarding him the honour, HE Ms Sylvie Bermann paid tribute to his commitment to the French community in London. 'You spend a lot of time on economic diplomacy and making yourself available to mentor or guide small and medium-sized businesses that wish to establish themselves in the UK,' she said.

New representatives JUSTIN TAYLOR, Managing Director, is the new main representative for Teads UK, replacing Christophe Parcot. Teads is the inventor of oustream video advertising and the leading native video advertising marketplace. www.teads.tv

60 - info - november / december 2016

LAURENT PILLET, Managing Director, Pernod Ricard UK, has succeeded Denis O’Flynn. Previously, Laurent was Managing Director of Pernod Ricard Sub-Saharan Africa. He is a graduate of Brest Business School and joined Pernod Ricard in 1991. www.pernod-ricard-uk.com


AT THE CHAMBE R – NE W ME MBE R S

PATRON MEMBERS DASSAULT SYSTÈMES UK – 3D design software and product lifecycle management (PLM) solutions

Represented by Stephen Chadwick, Managing Director EuroNorth Dassault Systèmes, The 3DEXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes' collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 210,000 customers of all sizes, in all industries, in more than 140 countries. www.3ds.com

MORGAN, LEWIS & BOCKIUS – Legal services Represented by Stephen Walters, Partner

With 29 offices in Europe, the United States, Asia and the Middle East, Morgan Lewis works with a range of clients from established FTSE 100 and Fortune 100 companies, to enterprising start-ups, helping to address and anticipate challenges across vast and rapidly changing landscapes. Morgan Lewis provides comprehensive litigation, corporate, finance, restructuring, employment and benefits, and intellectual property services in all major industries. Founded in 1873, Morgan Lewis encompasses more than 2,000 legal professionals, including lawyers, patent agents, employee benefits advisers, regulatory scientists, and other specialists. www.morganlewis.com

PINSENT MASONS LLP – Law firm

Represented by Diane Helena Mullenex, Partner, Head of the Global Telecom and Gaming Practices Pinsent Masons LLP is an international law firm which specialises in the energy, infrastructure, financial services, real estate and advanced manufacturing and technology sectors. Pinsent Masons LLP has over 400 partners, a total legal team of around 1,500 and more than 2,500 staff. Pinsent Masons was named 'Law Firm of the Year' in 2016 by respected industry magazine Legal Business and 'The most Innovative Law Firm in Europe' 2015 by the Financial Times. The firm has 21 offices across Europe, Asia Pacific and the Middle East. www.pinsentmasons.com

VIVENDI – Integrated media, entertainment and content group Represented by Arnaud de Puyfontaine, Chief Executive Officer

Vivendi is an integrated media and content group operating businesses throughout the media value chain, from talent discovery to the creation, production and distribution of content. Main subsidiaries include: • Universal Music Group, the world leader in recorded music, music publishing and merchandising, with more than 50 labels covering all genres • Canal+ Group, leading pay-TV operator in France, also serving markets in Africa, Poland and Vietnam. Operations include Studiocanal, a leading European player in production, sales and distribution of film and TV series • Vivendi Village, brings together Vivendi Ticketing (ticketing in the UK, the U.S and France), MyBestPro (experts counseling), Watchever (subscription VOD), Radionomy (digital radio) and the Paris-based venue L’Olympia, CanalOlympia venues in Africa and Olympia Production and the Théâtre de l‘Œuvre in Paris • Dailymotion, one of the biggest video content aggregation and distribution platforms in the world • Gameloft, pioneer of mobile gaming that successfully balances market and technological development while always pushing for innovation. www.vivendi.com

info

- november / december 2016 - 61


AT THE CHAMBE R – NE W ME MBE R S

CORPORATE MEMBERS LAGARDÈRE TRAVEL RETAIL HEDIOS

Operating shops in travel retail

Efficient investment solutions:

environments

creator of Gammes H

Represented by Amaury Dehen, Managing Director

Represented by Julien Vautel, CEO

Lagardère Travel Retail is a division of Lagardère, a world-

Hedios is a leading company in efficient investment solutions for

class media group operating in 31 countries with an annual

individuals. A range of investment products called 'Gammes H'

turnover of €7.2bn. The group's expanding presence in travel

was created to provide clients with substantial gains even when

retail includes a major international network of over 4,000

the markets are steady, and to protect capital if the markets fall

stores. In the UK, Lagardère Travel Retail operates duty free,

down to a certain level when the product comes to term.

fashion, specialty and F&B shops in international airports,

It is easily accessible and only requires minimal market knowledge

such as Luton, London City, Belfast, Glasgow, Birmingham and

and time. www.hedios.com

Edinburgh. www.lagardere-tr.com

LLOYDS BANKING GROUP Banking and financial Services Represented by Mathias Quennehen, Europe Business Manager Lloyds Banking Group is a leading UK-based financial services group providing a wide range of banking and financial services, focused on personal and commercial customers. The Group’s main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Group operates the UK’s largest retail bank and has a large and diversified customer base. www.lloydsbank.com

ACTIVE MEMBERS Ama Xperteye – Mobile, hands-free video conference

GM Avocats – Law firm – www.gm-avocats.com

solution on smart glasses – www.amaxperteye.com

Represented by Gilles Menguy, Managing Partner

Represented by Marina Suchkova, Key Account Manager Jurisglobal UK – French business law firm Ascential plc – B2B media: exhibition, festivals and

www.jurisglobal.eu

information services – www.ascential.com

Represented by Gaétan Di Martino, Founding and

Represented by Stefan Beurier, Chief Financial Officer

Managing Partner

Carea Distribution – Architectural mineral façade cladding

Pierre Marcolini – Luxury chocolate company

systems manufacturer – www.carea.uk.com

www.marcolini.com

Represented by Vincent Vuillaumie, Group Director

Represented by Vanessa Sélignan, UK B2B Manager

CPI Colour – Print and design company – www.cpicolour.uk

Rathbone Results – Business growth, strategy and

Represented by Simon Reid, Account Director

leadership advisers – www.rathboneresults.com Represented by Cora Lynn Heimer Rathbone, Partner

EMR Home Design – Architectural services and project management – www.emrdesign.co.uk

Verdier & Co – M&A and fundraising advice to corporates

Represented by Emilie Mauran, Director

and entrepreneurs – www.verdierandco.com Represented by Jean-Philippe Verdier, Founding Partner

Eudonet UK – CRM and business web-based software – www.eudoweb.com Represented by Arthur d'Achon, Business Development Manager

62 - info - november / december 2016


Digital Vision for Government We have entered the era of transformation where the pace of technological change is driving citizen expectations of the services Government offers and the way public services are delivered. In this age of digital disruption, Government has the opportunity to champion a new digital vision for Britain. The ‘Digital Vision for Government’ opinion paper highlights the immense opportunities associated with digital transformation and how delivering innovation and productivity can enable the UK to become a global leader in the provision of digital public sector services. Our paper is a collection of thought leadership pieces written by industry experts and technologists from organisations such as techUK, Coadec, the Business Services Association, the New Local Government Network and Policy Exchange.

#DVfGov uk.atos.net/DVfG


FORUMS & CLUBS Brexit: What is next? ECONOMIC UPDATE

The French Chamber's latest Economic Update was held at Home House on 14 October

Dissecting what is next for Brexit was always going to be a challenge, but the two speakers at the French Chamber’s latest Economic Update, held on 14 October at Home House, excelled

E

xpertly chaired by Philippe Chalon,

to clients around the world, they don’t

plan well in advance. Start-ups are agile,

Managing Director of French thinktank

know either,’ he continued.

they can take decisions overnight – all

Le Cercle d’outre-Manche and Director of

Saywell did say, however, that he was

you need is an office and a computer.

External Affairs at International SOS, the

confident that the pound would rally

But when you look at the real economy,

Economic Update offered unique insight

back. ‘Yes, the uncertainty is worrying a

where the jobs are, this is the larger

into how the markets were reacting to

lot of people, but there will be a solution

corporates. These are the businesses that

Brexit – and what the future might look like.

to Brexit, and the pound will rebound.’

are being most threatened by Brexit.’

between Steven Saywell, Global Head of

Business impact

What is next?

FX Strategy at BNP Paribas and François

Yet while the pound will bounce back, can

Large businesses are already planning

Barrault, Chairman and Founder of

businesses be as flexible? Barrault said

how to react, but the uncertainty is

FDB Partners and Chairman of Idate/

that, for now, businesses have pressed

beginning to cause problems.

DigiWorld Institute, was how uncertainty

the ‘pause’ button, and will do this until

‘The problem for markets is that the

is hitting the markets, including the

they find out what the UK Government’s

two results – hard or soft Brexit – give two

British pound, which had hit its lowest

plan of action will be.

very different outcomes. And that makes

At the heart of the discussion,

against the US dollar in 30 years when

‘Whether it’s a “soft” or “hard”

it difficult to plan,’ said Saywell.

Brexit, what businesses need is for the

One of the only certainties today is

‘For a business person, uncertainty

government to set out its position clearly

that businesses want Britain to retain

is bad; but for the markets, uncertainty

and give them a roadmap to follow,’

access to the European markets.

is terrible. It’s like death for markets,’

Barrault explained. ‘Without certainty, we

‘The economic outlook really depends

Saywell told the audience.

don’t know how long this “pause” will last

on whether EU access is maintained or

– the inertia could spill over into months

not,’ Saywell explained. ‘Right now, the

or even years, for larger businesses.”

market is interpreting Theresa May as

the event was held.

The pound had already started to weaken in the run-up to the EU Referendum, he explained, but it took a

This was one of Barrault’s primary

pandering more to the electorate than

hard downward turn due to the current

concerns: what effect Brexit will have on

to business – and, indeed, there was

political uncertainty.

larger corporates, which are the engine

big push back from business, after her

room of the economy.

latest speech, that she needs to listen to

‘At the heart of all this is that we just don’t know what Theresa May is thinking

He explained: ‘For me, the biggest

the voice of business. Britain’s economic

and we don’t know what sort of Brexit we

impact is on large corporations, as they

model is based on access to the EU and

will get – hard or soft. And when I speak

need to take decisions and forward

she needs to maintain that.’ I

64 - info - november / december 2016


FINANCE FORUM

Brexit negotiations need transparency At the start of September, with the Rentrée in full swing, Finance Forum members gathered to discuss the topic of the day – ‘Brexit: Initial Reactions and Challenges’

N

eil Sherlock, Partner and Head of Reputational Strategy at PwC, opened the proceedings

with a presentation looking at different political scenarios ahead of the UK Government invoking Article 50. Having worked as a special advisor to Deputy Prime Minister Nick Clegg between 2012-13, Sherlock offered unique insight into the mechanism of government and how Prime Minister Theresa May might approach forthcoming negotiations. ‘The challenge is not just for politicians, but also for businesses,’ he explained. ‘There is a massive need for businesses to communicate their message to decision makers that, beyond politics, there are fundamental economic interests at stake. There is a danger that, if we cannot make decisions or agree on things, we are sending a message to the wider world that Britain and Europe are not a

passporting rights to open up banking networks across the EU.

great place to do business.’

European corporates use it to open branches in the UK,’ he

For the government, Sherlock added, the key strategy is to plan ahead. ‘The one card that the UK Government holds is

told the forum's attendees. The biggest concern highlighted by the trio was, however,

the triggering of Article 50. Once you play that card, the clock

the uncertainty brought by the vote. Uncertainty is, in the best

starts to tick. So you need to be clear, before you play it, what

case, an annoyance for businesses; in the worst case, lethal.

your plan is.’ This view was echoed in the panel discussion that followed

‘All organisations need to contingency plan, but that becomes very difficult when you do not know which

his presentation. Jenine Hulsmann, Partner at Clifford

contingency is most likely. In finance, banks are looking at the

Chance; Robin Terry, Managing Director and Regional Head of

worse-case scenario [the loss of passporting rights] and then

Global Banking Corporate Sales at HSBC; and Gareth Lloyd-

working backwards,’ he added.

Williams, Managing Director and Head of Corporate Sales at HSBC offered a ground-level view of how Brexit might affect businesses in 2017 and beyond.

Planning is key

Hulsmann therefore highlighted the need for businesses to appeal to government for more transparency. ‘While a lack of transparency may have some benefits for the Brexit negotiations themselves, from a business perspective, all it causes is uncertainty,’ said Hulsmann.

The issue of passporting – a mechanism that allows companies

‘Business leaders must set out to government what you think

to do business right across the 28 member states – is a

is important both for your company and, more broadly, for

major priority, said HSBC’s Terry. ‘Financial institutions use

your sector.’ I

Business leaders must set out to government what you think is important both for your company and, more broadly, for your sector

info

- november / december 2016 - 65


LEGAL FORUM

EU LAW:

Brexit to pose huge challenges

Three months after Britain voted to leave the EU, the Legal Forum met to discuss what the potential legal impact of Brexit will be. At the heart of the discussion, held at the Chamber on 14 September, was the impact on trade and EU law

O

livier Morel, Partner at Cripps and Ken Morrison, Legal

The EU Commission itself has indicated that there will be

Director Eurotunnel Group – the Legal Forum Co-Chairs

no trade agreement reached prior to the UK leaving the EU,

– welcomed Ros Kellaway from Eversheds as the key speaker.

which is not a good position for businesses operating in the UK.

She is a Partner and Head of Eversheds’ EU Competition and

Kellaway does expect, however, that there will be a transitional

Regulatory Group.

agreement to preserve the tariff-free trading status with the EU

Kellaway started her talk by dissecting the procedure for

in the short term.

triggering Article 50, and how Britain’s departure from the EU will affect the British legal system.

‘We need to press the government to obtain at least transitional agreements with regard to trade,’ she said. ‘This is in the interests

EU law

of many of the EU27 as well. If trade

The key question is which elements of EU law will stay – and

between the UK and the EU becomes

which will go. Britain has had 40 years of EU law and most of

subject to substantial tariffs, it will

this came through the European Communities Act (EC Act) and

impact everyone.’

regulations which have had direct effect on UK law. Directives

£12.2bn

french trade surplus with britain

This is primarily due to the unequal

were also implemented via statutory instruments established

trade levels between the UK and the rest

by the EC Act, Kellaway explained. All of this is at risk through

of the EU member states: the UK has a trade

Brexit.

surplus with 18 of the EU27. The largest of these is with

‘If the mother act – the EC Act – is repealed, then the

Germany, which imports £24.9bn more goods and services

statutory instruments fall away too, the UK Court of Appeal

from the UK than it exports to the UK. Therefore, keeping trade

ruled in 2004. This means that every statutory instrument and

free with the UK is in Germany’s and most other EU members’

regulation made under the EC Act will go when we leave, unless

interests.

they are explicitly saved,’ she said.

‘Germany stands to lose a mint of money if we do not have

‘My expectation is that when we see the Act that repeals the

tariff-free trade,’ Kellaway said. ‘Trade is a two-way thing, and

EC Act, we will see huge saving provisions. The UK Government

there is no reason why, in the longer term, the EU cannot

has already started going through the 8-9,000 pieces of

complete a free trade agreement with the UK.’

secondary law to work out what they want to keep.’

Establishing an interim free-trade agreement in the short

Her recommendation for companies doing business in

term, post-Brexit, is hugely important for trade. Without this,

the UK is to begin reviewing which regulations affect them:

trade with the EU could revert to WTO rules, which would be

‘Go through how the WTO schedules will work, the impact on

incredibly onerous for everyone involved (see default trade

tax... every aspect of regulation in relation to your business, to

tariffs, table 1, below).

see what your priorities need to be.’

‘Negotiating a proper free trade agreement is going to take a really long time,’ Kellaway added. ‘But two years – the

Trade deals

period defined in Article 50 when leaving the EU – might be just

On the trade side, the legal impact is complicated. There are,

enough to negotiate an exit agreement so that life can continue

broadly, four models available for the UK: (1) it reaches an

more or less normally, and this will need to retain a tariff-free

interim deal to keep trade flowing freely; (2) it remains an EEA

relationship between all of the current members of the EU in

member; (3) it strikes a free-trade agreement with the EU; or (4)

the interim. This gives us more breathing room to work out a

trade defaults to World Trade Organisation (WTO) terms.

longer-term deal.’ I

EU-WTO trade tariffs

(source: WTO)

Dairy: 45.3% Sugars and confectionary: 25.6%

66 - info - november / december 2016

Beverages and tobacco: 20.8% Clothing: 11.5%

Electrical machinery: 2.4% Fruit and vegetables: 10.4%


CLIMATE CHANGE FORUM

What is the science behind climate change? Is the climate changing, what are the causes of the change, and what does it mean for the UK? These are the questions that the Met Office’s Dr Katy Richardson, an Applied Climate Scientist, answered at a Climate Change Forum held at the Chamber on 27 September

U

sing scientific data and real-world

evidence of anthropogenic, human-

periods of drought, higher intensity

examples,

induced climate change.

rainfall and a rise in sea levels. This could

Richardson

deftly

explained the science behind climate

Turning to the future, Richardson

affect businesses across all sectors –

change and how it is affecting people

explained the two main greenhouse gas

farming, insurance, transportation and

and businesses around the globe.

emissions scenarios published by the

much more.

‘2015 was the warmest year on

Inter-Governmental Panel on Climate

‘Up to the mid-21st century, there is

record for the whole globe,’ she said.

Change. The first scenario shows a

not much difference between the two

‘And the overall trend is that temperature

future where nothing is done to tackle

pathways, but if we continue towards the

is increasing.’

emissions: this would lead to a world

end of the century, they diverge quite a

that is around 4°C warmer than pre-

lot and result in very different climate

El

industrial times by 2100. The second

change impacts,’ Richardson explained.

Niño Southern Oscillation or volcanic

scenario shows what could happen if we

‘What is clear is that the longer we take to

Part of this is influenced by natural climate

variability,

such

as

the

It’s an aim, a goal. There are a number of possible pathways to get there eruptions, but a closer look at historic

manage to heavily reduce emissions –

address emissions, the more severe the

CO2 concentrations in the atmosphere –

and limit the increase in global average

cuts will need to be to limit temperature

temperature to 2°C by 2100.

increases to 2°C.’

the greenhouse effect – shows a large

In either case, there will be an

But, she added, while it is an

spike starting around the industrial

impact on climate. In the UK, projections

ambitious pathway, it is still achievable.

revolution and growing incredibly quickly

forecast hotter, dryer summers and

‘It’s an aim, a goal. There are a number of

since then. This, says Richardson, is

warmer, wetter winters, plus increased

possible pathways to get there.’ I

which are linked to temperature through

info

- november / december 2016 - 67


HR FORUM

Employers must start Brexit planning now

H

aving said that the UK Government

speaker alongside Ben

aims to trigger Article 50 by the end

Wilkins, People and

of March 2017, Theresa May has given

Organisation Partner

businesses in the UK little clarity over

at PwC.

Brexit – but only a little, and possibly not

What is important

enough to satisfy business leaders of

to remember for now,

what the plan actually is.

said Blavo Barna, is

‘All we know, at the moment, is that

that at the moment

the Government plans to trigger Article

the UK is still part of

50 by the end of March. But in relation

the EU, so nothing

to immigration, which has a huge impact

has

for all businesses, the government has

preparation for what

not said anything at all,’ said Koshi Blavo

could come is essential.

Barna, Senior Immigration Consultant at

She said: ‘As employers, we need to

the EU. PwC’s Wilkins echoed her call

ebl miller rosenfalck, speaking at a French

protect the immigration status of our

to begin preparing. ‘We do not know

Chamber’s HR Forum on 4 October. ‘It’s

EU nationals. I would encourage any EU

what the future looks like, so all we can

quite shocking, almost disgraceful, that

nationals who have lived and worked in

do is scenario plan and look at how

no one has said anything with regard to

the UK for five years or longer to make

Brexit will affect your business and your

EU nationals as part of the UK workforce.

an application for permanent residence.’

employees,’ he said.

I do not know when we will get any

For any EU nationals who have

‘Look at the short term through to the

lived in the UK for under five years, she

long term: what actions do employers

assurances.’ The

HR

was

recommends making an application for

need to take? Even if there is not a huge

a certificate of residence. Employers,

amount to say today, just show your

Rambosson, Managing Director, Financial

meanwhile, should consider applying

employees that you, the employer, are

Services

International,

for a sponsor license, just in case this is

thinking about Brexit and the steps you

welcomed Koshi Blavo Barna as a

needed after the UK’s departure from

and they need to take.’ I

chaired

Europe,

DHR

which

But

Stéphane

exceptionally

Forum,

changed.

by

All we know, at the moment, is that the Government plans to trigger Article 50 by the end of March. But in relation to immigration, which has a huge impact for all businesses, the Government has not said anything at all

FORTHCOMING FORUMS & CLUBS

Climate Change Forum

Human Resources Forum

Co-chairs: Richard Brown CBE, former CEO & Chairman of

sponsored by HEC

Eurostar and Jean-Philippe Verdier, Founding Partner, Verdier & Co

Deputy chair: Michael Whitlow, Human Resources Director,

24 November, 10.00am – 12.00 noon

Europe at International SOS

Theme: Smart Cities

7 December, 8.30 - 10.00am

Speaker: Michael Dodd, Head of Section, Markets and Policy

Theme: People Analytics

Development, DNV GL

Speaker: Philippe Gaud, Associate Professor, HEC Paris and Claire Gannon, Director, People Analytics and Metrics, Schneider Electric

All sessions take place at the French Chamber. For more information, please contact Ophélie Martinel at omartinel@ccfgb.co.uk or 0207 092 6634

68 - info - november / december 2016


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EVENT HIGHLIGHTS 6 SEP T EM B ER | D Î N E R D E S C H E F S AT B E L M O N D L E M A N O I R AUX Q UAT ’S A I S O N S

A luxury country dinner

H

eld at Belmond Le Manoir aux Quat’Saisons, the latest Dîner des Chefs was held in the private dining room, packed with guests who were driven to the Manoir in new Renault Kadjar cars to enjoy an evening of Michelin-star food, starting with a Perrier-Jouët Champagne reception and Caviar Petrossian tasting. Raymond Blanc OBE welcomed guests to the four-course gastronomic dinner, which was accompanied by prestigious wines from Crus Classés de Graves, Martell Cognac ‘deconstructed’ cocktails and macarons from Pierre Hermé Paris.

14 SEP T EM B ER | R E N D E Z -VO U S C H E Z ... L E V I E UX C O M P T O I R

Regional France in London

D

elicious French charcuteries, French cheeses and French wines: the Rendez-vous chez Le Vieux Comptoir on 14 September was a tongue-tingling success. Held in the cosy and intimate atmosphere of Le Vieux Comptoir, owner Laurent Faure welcomed French Chamber members, who enjoyed a taste of regional France.

5 O C TO B ER | C O C K TA I L R E C E P T I O N AT M A I S O N A S S O U L I N E

Cocktails and fine books galore

H

osted by Prosper Assouline, co-founder of Assouline Publishing with Martine Assouline, the cocktail reception provided 80 Patron and Luxury Club guests with the opportunity to discover this three-floor temple dedicated to the act of reading. Perrier-Jouët Champagne and cocktails expertly made by Pernod Ricard mixologists welcomed guests upon arrival.

13 O C TO B ER | R E N D E Z -VO U S C H E Z ... T H E R E M B R A N D T

Historic surroundings

B

uilt in 1911 as apartments for Harrods, The Rembrandt – now a fourstar hotel – welcomed French Chamber members for a ‘Rendez-vous chez’ on 13 October to enjoy an evening of canapés and wines in its newlyrefurbished conservatory. I

70 - info - november / december 2016


Trade Delegation to Liverpool

LIVERPOOL:

Open to business

Members of the French Chamber took part in a trade delegation to Liverpool on 15 September, to discover the business opportunities available in the north-western city

HE Ms Sylvie Bermann, French Ambassador to the UK (centre), led a delegation of London-based Franco-British business leaders

T

he French Ambassador to the UK, HE Ms Sylvie Bermann,

Liverpool and France run deep.

and the Deputy President of the French Chamber,

From then, it was a non-stop day for the participants, which

Stephen Burgin, who is also Vice President Europe, GE

began with a visit to Liverpool Vision's offices to hear about

Power Strategic Accounts, led the delegation of 17 London-

investment opportunities. It is clear why Liverpool is attractive

based Franco-British business leaders. The Lord Mayor of

to businesses: over the period 2016-2018, the city's annual

Liverpool, Councillor Roz Gladden welcomed the delegation at

growth in production is expected to be 1.9 per cent. The UK

Liverpool Town Hall. Participants included representatives from

Government is also investing heavily in the city's growth,

ENGIE, JCDecaux, Veolia and Eptica.

providing £30m per year for the next 30 years to develop the

Speaking in the Grand State Room, HE Ms Sylvie Bermann,

Mersey River area and its Superport and the HS2 high-speed rail

who had visited Liverpool before, thanked the Lord Mayor for

link. The delegation then visited the UK's largest regeneration

her welcome. ‘I love this city, so this time I thought I should bring

project, Mersey Waters, to meet local business leaders from

some business leaders to see if there is a possibility to foster our

companies such as Peel Group and Mersey Maritime.

relationship further,’ she said. ‘There are a lot of opportunities

After lunch, participants were whisked to one of Europe's

here, and maybe this city is not as well known as it should be. It

leading innovation districts, Liverpool's Knowledge Quarter

is my pleasure to lead this delegation today.’

to meet its CEO Colin Sinclair, and then toured the Liverpool

The Lord Mayor added that the city was truly open for

School of Tropical Medicine's state-of-the-art facilities.

business: ‘You’re going to be impressed with Liverpool,’ she

Finally, guests visited The Beatles Story and were treated

said. ‘The city and its people are very welcoming, so any attempt

to a private viewing of the Francis Bacon exhibition at the Tate

to bring us closer together in terms of business or friendship

Liverpool, led by Francesco Manacorda, Artistic Director of

is welcomed by all of us. It is not a coincidence that Liverpool

the gallery. The day was certainly busy, but the delegation unanimously

voted by nearly 60 per cent to remain in the EU.’ While at the Town Hall, the Franco-British group was also

agreed that, by all accounts, the visit was a success, underpinned

delighted to learn that the great-grandfather of one of their

by the city’s welcoming nature and the diversity of opportunities.

fellow delegates, Wilfrid Petrie, CEO of ENGIE UK & Ireland,

A special thank you goes to PwC and Swinton Insurance, who

had been the Mayor of Liverpool at the end of the 19 century.

sponsored the trade delegation, as well as to Liverpool Vision

Perhaps this was an auspicious sign that connections between

and Liverpool City Region, for helping to organise the visit. I

th

info

- november / december 2016 - 71


Breakfast with Estelle Brachlianoff

Sponsored by:

BREAKFAST WITH:

Estelle Brachlianoff What has been Veolia’s journey into the circular economy? This was the theme of the French Chamber’s ‘Breakfast with Estelle Brachlianoff’, held on 20 October

T

he event, held at the Berkeley Hotel, a Chamber Member, with

breakfast kindly provided by PAUL, gave 80 attendees the opportunity to spend the morning with Estelle Brachlianoff – Senior Vice-President Veolia UK and Ireland and President of the French Chamber – and hear the story of how she became an industry leader. And what a story it is. Veolia is now a titan of UK industry, employing 14,000 people and turning over £2bn per year. At the heart of the company’s success has been its openness to change and its ability to act boldly. ‘It’s my great belief that fortune favours the brave,’ Brachlianoff explained. ‘This is the quintessence of our journey.’ While Veolia could be described as a waste, water and energy company, in actual fact what the company does

Money isn’t the end game. Business can and should be a force for good

is resource efficiency and circular economy. And this, she said, is relevant

thought the world was flat, but we’re

to one of the biggest challenges that

discovering that it’s actually round.

and our cities,’ she said. ‘We have

society faces today: climate change.

That’s what’s happening with the circular

transformed the business, closing

economy today.’

more loops every week, month and

‘People think of global warming as something that is probably happening, that will probably affect our children, and is probably more of an issue in

Materials recovery By way of example, Estelle Brachlianoff

‘We’re literally mining our streets

year. We’re on a journey.’ This journey gives Brachlianoff a sense of purpose for Veolia. The

developing countries than in the UK.

held up a small glass phial containing

company operates 350 sites across

But it is already happening, right here

a very small specimen of the precious

the UK, working closely with each local

and right now, in the UK, and something

metal palladium, which is used in

community and investing heavily in

needs to be done,’ Brachlianoff said.

jewellery and microelectronics. Palladium

infrastructure that creates jobs. She

is used in catalytic converters, to treat

believes her business can do its job

of the solution by promoting more

the gases emitted by vehicles. As cars

and be a positive force for society at the

efficient use of resources and the

and trucks, drive around London, tiny

same time.

circular economy.

particles of palladium are being emitted.

The good news is that Veolia is part

The company believes the sector

Until a few years ago, Veolia would

‘It was a shock for the team when I told them that the business isn’t about

can help the UK to cut up to 10 per cent

sweep the streets and all of the dust

of CO2 emissions through its innovative

and detritus would go straight to landfill.

solutions. By ‘mining’ waste, Veolia is

But the company has now developed

our shareholders, but money fuels the

able to recover materials that can be re-

a process where 90 per cent of what

engine – not the direction of travel,’ she

used, re-purposed or become a source

is collected is either composted or

said. ‘It’s all about the impact we make.

of energy.

recycled, such as the palladium. How

Business can and should be a force

much is the small phial worth? £2,000.

for good’. I

‘This is a Galileo moment: we all 72 - info - november / december 2016

making money. 'Of course we must earn money for


RYDER CUP 2018:

Coming to France Nearly 100 members of the French Chamber gathered at the French Residence on 20 September to celebrate France’s winning bid to host the Ryder Cup in 2018

T

he competition, which will be held at Le Golf National Albatros

It was an overwhelming majority.

As part of our bid, we’ve proposed to

Of course, to fund the bid and

build compact courses, to give people

Course in Saint-Quentin-en-Yvelines,

the event, this would cost money. But

more access to the game. The event will

is a first for France and marks an

members were also supportive. We

also boost French tourism, showcasing

important milestone for French – and

suggested an increase in license fees of

France as a golfing destination – not just

European – golf. Patron members of the

€3 per member (i.e. €49 per year) and

for fine wines and culture.

French Chamber were welcomed to a

this also passed by a resolution of 81

champagne reception by HE Ms Sylvie

per cent. People are excited.

Following its loss in October, can the

Bermann, French Ambassador to the UK,

European team regain the Ryder Cup

and heard from Pascal Grizot, Chairman

What did it mean to you to win the

in 2018?

of Ryder Cup France 2018; David

event?

Of course! It would be fantastic, and

Williams, Chairman of PGA European

Winning the Ryder Cup was the

we have high expectations. I also hope

Tour; Ryder Cup player Thomas Levet;

culmination of three years of hard work,

that we will have a French player on the

and Antoine Arnault, Chairman of Loro

so we were really proud. But we also

team in 2018, as it always gives you an

Piana, the official supplier of clothing to

know it is a huge responsibility. The

advantage to play in your own country.

the European Ryder Cup Team.

Ryder Cup has only been played once

Having a French champion would also

on the continent, in Spain. And now

boost the game’s profile in France, like

to hear more about why this is so

France will host it in 2018. We have great

when Yannick Noah won the French

important for France.

expectations for the event.

Open at Roland Garros in 1983 – it

INFO sat down with Pascal Grizot

We believe that this is a wonderful

transformed the sport in France. We can

How eager was the French Golf

opportunity to develop the game in

Federation to host the Ryder Cup?

France. It is no secret that golf has

When we asked our general assembly to

been an elitist sport for many years,

The 2018 Ryder Cup will take place at

vote on hosting the event, 93 per cent

with too many people saying it is too

Le Golf National near Paris from 25-30

said they wanted France to put in a bid.

time consuming and too expensive.

September 2018.

do the same with golf. I

Top (L-R): Ryder Cup Europe MD Richard Hills, Ryder Cup France 2018 Chairman Pascal Grizot, French Ambassador HE Ms Sylvie Bermann, Ryder Cup Player Thomas Levet, PGA European Tour Chairman David Williams and French Chamber MD Florence Gomez Left: Antoine Arnault, Chairman of Loro Piana

info

- november / december 2016 - 73


LUXURY DINNER 2016

A celebration of luxury

C

hanel, Hermès, Lalique, Piaget... these are just some of the

‘The very low British pound has made London one of the

luxury brands that hosted tables at the French Chamber’s

best places to purchase luxury goods today, and most luxury

annual Luxury Dinner. Indeed, more than 110 people, including

brands have done incredibly well over the summer,’ she said,

HE Ms Sylvie Bermann, French Ambassador to the UK, attended

adding that luxury companies will continue to be at home in

the black-tie event at Claridge’s on 17 October, in celebration of

the UK. 'London is the place where the world's wealthy come

the booming Franco-British luxury industry.

to meet, and they are confident in the future. This is absolutely

Guests were welcomed by a Laurent Perrier Champagne

essential for the city's long-term success.'

reception before being ushered into Claridge’s spectacular art

The notion of using luxury to achieve success was further

deco ballroom, which had been hand-decorated by experiential

echoed by guest speaker, Viscount Linley, the Honorary

agency Profirst with more than 3,000 golden butterflies and

Chairman Europe, Middle East, Russia and India of Christie’s

bespoke ‘cloche’ flower arrangements.

and Founder of LINLEY.

The gourmet dinner, prepared by Claridge’s award-winning

Viscount Linley, who is HM Queen Elizabeth II’s nephew, was

chefs, was accompanied by fine wines from Les Crus Classés

interviewed on stage by Bertrand Michaud, Managing Director

de Graves, and petits fours were later provided in the form of

of Hermès UK and Chair of the French Chamber’s Luxury Club.

macarons from Pierre Hermé Paris.

Together, the pair discussed the role of artisanal craft and what

The mood of the night was festive, but Brexit remained a

the future is for hand-made luxury goods. Both said they were

topic of conversation for many, as Florence Gomez, Managing

certain that luxury will always have a place in making people

Director of the French Chamber, alluded to in her opening

dream and feel good.

speech: ‘While I was welcoming you earlier, the topic on everyone’s lips was, of course, how Brexit will affect us all.’

Throughout the evening, attendees were also treated to a performance by The Jette Parker Young Artists Programme

While, like other industries, most luxury businesses did not

from the Royal Opera House, as well as by a demonstration by

anticipate Brexit, the summer months have been an inopinate

cellist Thomas Carroll, who played a duet against a top-of-the-

success for the sector, as the collapse of the British pound drew

range speaker by Devialet. The evening was then capped off

tourists to London, boosting luxury spending.

with a Glenmorangie tasting, to everyone's delight. I

74 - info - november / december 2016


CHAMBE R HAPPE NINGS – FORTHCOMING E VE NT S

In partnership with

21

November 8.30 - 17.00

FRANCO-BRITISH CONFERENCE 2016: DISRUPT OR BE DISRUPTED At One Great George Street, London SW1P 3AA £120+VAT per person for members £190+VAT for non-members Government representatives: The RT Hon Matthew Hancock MP, Minister of State for Digital and Culture Axelle Lemaire, French Secretary of State for Digital Affairs and Innovation Keynote speakers: Sébastien Bazin, Chairman and CEO of AccorHotels Arnaud de Puyfontaine, CEO of Vivendi

Monday 21 November, 8.30am - 5pm One Great George Street, London SW1P 3AA

Few places left!

Panelists include: Yann Bonduelle, UK Consulting Data Analytics Leader, PwC Philip Chalmers, Senior Vice President Public Sector & Health, ATOS Christophe Chazot, Group Head of Innovation, HSBC Stéphane Guinet, Founder and Managing Partner of Kamet Ventures, InsurTech startup studio created in January 2016 and funded by AXA Group Diane Mullenex, Avocat à la Cour, Partner, Head of the Global Telecoms Practice, Pinsent Masons LLP Christophe Tcheng, VP Product Technology & Strategy, American Express Global Business Travel

Plus case studies with founders and CEOs of disruptive start-ups: Jonathan Chippindale, CEO of Holition Augmented Retail Frédérique Grigolato, Co-Founder and CEO of Clic and Walk (French Tech – Lille) Chris Sheldrick, Co-Founder and CEO of what3words And influencers and academics such as Huy Nguyen Trieu, CEO of The Disruptive Group, Professor Davide Sola, Associate Professor - Strategy & Management of ESCP Europe and Professor Mark Kennedy, Associate Professor of Imperial College. For the full line-up of speakers and to book: www.FrancoBritishConference.co.uk For more information, contact Sonia Olsen at solsen@ccfgb.co.uk or 0207 092 6642 Supporting sponsor:

Main sponsors

23

November

RENDEZ-VOUS CHEZ MAISON CORTHAY At Maison Corthay, 24A Motcomb Street, London SW1X 9EX £20+VAT per person

Few places left!

18.00 - 20.00

Join us to discover the savoir-faire of Maison Corthay, luxury shoe maker founded by Pierre Corthay. Pierre is the only men’s shoe-maker to have been awarded the title of ‘Maitre d’Art’ (Master of Art), a distinction given by the French Ministry of Culture. Come and surround yourself with vibrant colours and exquisitely-finished products for a luxury evening of networking. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

info

- november / december 2016 - 75


CHAMBE R HAPPE NINGS – FORTHCOMING E VE NT S

THE FRANCO-BRITISH BUSINESS AWARDS 2016 At The May Fair Hotel, Stratton Street, London W1J 8LT £110+VAT per person or £1,000+VAT for a table of 10 for members November £160+VAT per person for non-members 19.00 - 22.30 Champagne partner: Vranken Pommery Wine partners: Le Conseil des Vins du Médoc and Les Vins de Pessac-Léognan Dress code: Black tie

30

AWARDS CEREMONY & DINNER

The winners of the Franco-British Business Awards 2016 edition will be announced on Wednesday 30 November during a ceremony in the presence of HE Ms Sylvie Bermann, French Ambassador to the UK and The Rt Hon Edward Llewellyn OBE, British Ambassador to France. This fantastic evening includes a Vranken Pommery Champagne reception followed by a three-course dinner, complemented by French Wines from Le Conseil des Vins du Médoc and Les Vins de Pessac-Léognan.

The nominees are: Large Corporate Award: EDF Energy and Schneider Electric Start-up & SME Award: Devialet, Sponsorise.me and Theodo The French Chamber Award: This award is for a member company that has significantly contributed to the French Chamber over the past year, through its commitment and participation. Coup de Cœur Creative France – Business France: This award is for one of the shortlisted companies, either a start-up or large corporate, that is the most creative. www.FrancoBritishBusinessAwards.co.uk To book a table or places please contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 020 7092 663 Main sponsors

6

December 18.30 - 20.30

Supporting sponsors:

CROSS-CULTURAL EVENING DEBATE At the French Residence, 11 Kensington Palace Gardens, W8 4QP £40+VAT per person; £70+VAT - Special price for two Guest speakers: The Right Honourable Dominic Grieve QC MP and Yann Bonduelle, Partner and UK Consulting Data Analytics Leader, PwC Moderator: Peter Alfandary, Senior-Vice President of the French Chamber Both speakers will present their insights on best practices relating to working in crosscultural environments. The event will be followed by a Q&A session and a cocktail reception, allowing ample opportunity to network. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

76 - info - november / december 2016


CHAMBE R HAPPE NINGS – FORTHCOMING E VE NT S

8

December 18.30 - 21.00

BUSINESS CLUB COCKTAIL WITH JACQUES SEGUELA At the Hyatt Regency London, 30 Portman Square, London, W1H 7BH £30+VAT per person; £50+VAT – Special price for two Guest speaker: Jacques Séguéla, Adviser, Founder and Consultant of HAVAS Advertising Theme: Global advertising in the 21st Century

Jacques Séguéla, France’s undisputed king of advertising, started his career as a pharmacist, before becoming a Paris Match reporter, the driver of the first round-the-world trip in a French car and the editorin-chief of popular daily France Soir at only 30. Switching to advertising aged 35, Jacques co-formed Roux Séguéla, creating groundbreaking slogans for presidents Valéry Giscard d'Estaing, François Mitterrand and Jacques Chirac and famous campaigns for the likes of Club Med ('the best idea since the invention of happiness') and Louis Vuitton ('the spirit of travels'). Séguéla’s reach went international with RSCG, which merged with Eurocom to create EURO RSCG (now Havas Worldwide London), the number one French and European agency. Since Havas was acquired by Vincent Bolloré, Jacques Séguéla has remained as VP, Global Creativity. At 81, he likes to say that 'old age begins when regrets overcome dreams'. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

14

December 12.00 - 14.30

ANNUAL FINANCIAL LUNCH – 20 TH ANNIVERSARY At The Four Seasons Hotel Park Lane, Hamilton Place, Mayfair, London W1J 7DR £100 + VAT per person, £1,140 + VAT for a table of 12 Guest speaker: The Rt Hon The Lord Darling of Roulanish Theme: The City of London’s position following the EU referendum and the potential post-Brexit scenarios The Rt Hon The Lord Darling of Roulanish was a Member of Parliament from 1987 until 2015, most recently for Edinburgh South West. He served as Chancellor of the Exchequer from 2007 to 2010, playing a central role in tackling the economic crisis that hit Britain after the crash of 2008, including overseeing the nationalisation of the Royal Bank of Scotland and Lloyds Banking Group. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

9

January

THE NUTCRACKER At the Royal Opera House, Bow Street, London, WC2E 9DD By invitation only

From 19.30

The Royal Ballet celebrates Peter Wright’s 90th birthday with his much-loved production of this beautiful classical ballet, danced to Tchaikovsky’s magnificent score. Organised for Patron Members' main representatives For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

10

January

RENDEZ-VOUS CHEZ PAUL TO CELEBRATE LA GALETTE DES ROIS! At Tower 42, 25 Old Broad St, London EC2N 1HQ £25+VAT per person

18.00 - 20.00

For its second edition, we are delighted to announce that our Galette des Rois will take place at the PAUL UK Restaurant on 10 January. Come and join us to leave 2016 behind and celebrate the new year together! For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

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- november / december 2016 - 77


11

January

COCKTAIL RECEPTION AT HOME HOUSE 20 Portman Square London, W1H 6LW Free of charge

18.30 - 21.00

We are delighted to announce the launch of our first dedicated event for Corporate members. This evening reception will be held in the magnificent surroundings of Home House and will give members an occasion to network and celebrate 2017 together. For Corporate members' main representatives For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

19

January 17.30 - 20.30

AMBASSADOR'S BRIEF At the French Residence, 11 Kensington Palace Gardens, Kensington, London W8 4QP Hosted by HE Ms Sylvie Bermann, French Ambassador to the UK Free of charge The French Chamber is pleased to announce the first Ambassador's Brief of 2017 with HE Ms Sylvie Bermann, French Ambassador to the United Kingdom. Open to Patron & Corporate members, as well as the Chamber's Advisory Councillors For more information, contact Sonia Olsen at solsen@ccfgb.co.uk on 020 7092 6641

24

January

EVENING WITH CAROLYN FAIRBAIRN, CBI DIRECTOR-GENERAL At the French Residence, 11 Kensington Palace Gardens, Kensington, London W8 4QP £40+VAT per person; £60+VAT – Special price for two

18.30 - 20.30

The French Chamber will host an evening with Carolyn Fairbairn, Director-General of the CBI, who will share the CBI’s perspectives on Brexit, its impact on businesses and will answer your questions on the UK's future economic outlook. Carolyn joined the CBI in 2015 following a 30 year career in British business. She spent her early career at McKinsey before taking on a range of senior leadership roles in the media industry. She has also held nonexecutive plc board positions spanning the manufacturing, services and banking sectors. From 1995-97, Carolyn was a member of the Number 10 Policy Unit, where she advised on health and social services. She began her career as an economist at the World Bank, before joining the Economist magazine as a business and financial journalist. Carolyn holds a first-class degree in Economics from Cambridge University, an MBA with distinction from INSEAD, and MA in International Relations from the University of Pennsylvania. She is an honorary fellow of Gonville and Caius College, Cambridge. To book your place, please contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643

26

January 18.00 - 21.00

SEMINAR AT BRYAN CAVE At Bryan Cave, 88 Wood St, London EC2V 7AJ Free of charge Theme: Will French contract law soon govern international business transactions?

Bryan Cave and the French Chamber are pleased to invite you to join what promises to be a very interesting and topical debate on 26 January. It will be followed by a cocktail reception where you will have the opportunity to network with new business contacts. For more information, contact Anne-Claire Lo Bianco at alobianco@ccfgb.co.uk or 0207 092 6643 78 - info - november / december 2016


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ŠPhoto credits: Pascal le DoarÊ and COSEA photo libraries

CONSTRUCTING A SUSTAINABLE FUTURE At VINCI Construction Grands Projets, we engineer digital solutions that help us and our Clients in the conception and construction of our major projects. On SEA Tours-Bordeaux high speed rail line (302 km and 38 km of connecting track), we developed a bespoke information system allowing sharing of processes and data between all partners (80 design offices, 5 sub-consortiums, 3,500 employees) that offers the most reliable performance. We introduced an Electronic Document Management System (EDMS) and a Geographical Information System (GIS) whose 3D interface fostered collaboration with clients and stakeholders. This real Asset Information Management (AIM) is being transferred to the dedicated company for the maintenance of the project over 45 years.

In the UK, we are currently placing our BIM expertise at the core of infrastructure projects such as Tideway East and the M4 Corridor around Newport, with the aim of providing enhanced collaboration and efficiency. By EXCELLENCE, we mean designing and building quicker, safer and at best value. www.vinci-construction-projects.com/british-isles


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DIGITAL FINANCE THAT EMPOWERS YOUR BUSINESS Econocom designs, finances and oversees companies’ digital transformation. We provide bespoke finance solutions and associated services to help firms acquire the latest digital technology and become more agile. www.econocom.co.uk

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