CEO Magazine Vol 19 Issue 2

ceo

celebrating excellence in organisations Vol 19 No 2 - 2019

Trailblazing Porsche

Servant-Leader Organisations

Intrapreneurs Innovators

Fires & Explosions Luthando Vutula, CEO, ubank

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Banking on

Loss Drivers

Innovation & Trust

Are You brave enough to take the

CEO CHALLENGE?

Want to know how your business partners, employees and stakeholders might preceive you?

It is well known that today's leaders are open to explore feedback.

Be Brave!

Be a Leader!

Take the PDA Assessment today & Receive your FREE Summary Report! http://ceo.pdaproďŹ le.com CeO 2019 Vol 19.2

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REWORKING ORGANISATIONS

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EXPERIENCE

MENTALIST

KEY STRATEGIES

BEHAVIOURAL DYNAMICS

FIT FOR PURPOSE

CUSTOMER EXPERIENCE

CHANGE INFLUENCE INCLUSIVE INNOVATION

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DISRUPTIVE

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Paul@uniquespeakerbureau.com I +27 83 268 6057 www.uniquespeakerbureau.com

EDITORSNOTE

EDITOR’S note

Personalisation of

Disruption

D

isruption, powered by changing technology and new business models (mostly underpinned by technological developments, but latterly by shifting cultural norms too) has long being grist to the business consultant mill.

Many working hours, productive and otherwise, have been spent attempting to address and provide structure to the unpredictability of disruption. It is often argued that it cannot be managed and it is certainly true that the notion of ‘self-disruption’ has helped many companies fend off the challenges of this allencompassing phenomenon.

In this issue we have two interesting perspectives on the notion of disruption, in our cover story article with ubank Chief Executive Officer, Luthando Vutula and a thought leadership piece by Dr Gerhard van Rensburg. In the case of ubank, the organisation not only embraced disruption internally and externally, but also developed an appreciation for the fact that it can crystallise opportunities for a business, not only threats.

Simultaneously, Dr van Rensburg draws our attention to the need for a change in mind set required by all of us if we want to be effective in a changing and dynamic world. The reality is that the notion of self-disruption that applied to companies and institutions, has now crept into the personal realm and it is going to challenge all of us.

Valdi Pereira As ubank and its team shows there is a great deal to be had in terms of fresh thinking and preparing for the future.

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We celebrate

LIFE

Providing high quality holistic care since 1970, Avril Elizabeth Home is a leader in the field of caring for the intellectually challenged. www.avril.org.za 011 822 22 33 aehome@mweb.co.za

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QVC/2013/AEH/01

CeO 2019 Vol 19.2

INsights

conditions. In building resilience, organisations need to anticipate and prevent risks from materialising through risk management, and in the event of a disruption occurring, they need to know how to recover through the business continuity plan. Operational resilience, which confers the ability to adapt to change and withstand disruptions, is what bridges the gap between these two.

Essentially, says Humphris, operational risk can be seen as what organisations must do in order to become resilient. In building operational resilience, organisations face certain challenges, including the dynamic business landscape, in which strong competition and expanding customer expectations create the need for a highly flexible organisational structure.

Operational resilience:

the key to organisational resilience

By Karen Humphris, Senior Manager: Advisory Services, at ContinuitySA

Building operational resilience must be seen as a key driver of organisational resilience, says Karen Humphris, Senior Manager: Advisory Services, at ContinuitySA.

“To build operational resilience, it’s vital to have a dynamic approach that covers all key dependencies, has the right governance in place and, critically, the right people,” says Humphris. “Every effort needs to be made to create a culture of resilience in the organisation.”

She argues that it is important to approach operational resilience in a structured way, advocating a fourfold operational resilience framework. This framework aims to provide a bird’s eye view of the organisation’s vulnerabilities and points of failure, as well as to outline the right decision-making capabilities to manage these vulnerabilities, and how these vulnerabilities should be integrated into the existing risk-management principles (depending on risk appetite).

The four steps to building an operational-resilience framework are: • Define the organisational structure.

• Analyse the functions within each structural component.

• Classify the points of failure.

• Establish how to manage these points of failure in line with the organisation’s risk appetite and particular circumstances.

“T

It’s very important to keep in mind that each organisation is unique, so these steps must be customised appropriately.

Operational resilience is defined as the techniques that enable people, processes and IT systems to adapt to changing business

“If the framework is put in place, the overall business will become more resilient and it will be better able to allocate capital and resources to mitigate risk more effectively,” she concludes. “Proactive management of operational resilience will also provide stakeholders, including regulators and business partners, with some level of assurance that the organisation has a methodology for identifying challenges to its sustainability, minimising the impact on them.”

oday’s business environment is both complex and volatile; in response, organisations are focused on becoming more resilient and able to adapt to change as it occurs. The more resilient an organisation is, the less likely it is to have to invoke its business continuity plans,” she says. “Building operational resilience is key to building organisational resilience because it addresses how the organisation acts in a resilient way. You can’t have the one without the other.”

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CONTENTS 10 LEADING edge

With banking undergoing massive disruption, it seems like there’s challenges around every corner. It’s being suggested that it is ultimately going to be a win-win for the sector and customers. What’s your perspective on these disruptions?

REGULARS 3 Editor’s Note 5 Insight 8 Flip Side

Everyone has been hacked

72 Last Word

PERspective 28 Operational Resilence: The key to Organisasional Resilience

IN the KNOW

30 Noblesse Oblige

44 Assessing legal risks in the move to Cloud

34 Organisation as Servant-Leader 36 Best Practice Total Awards?

Communication is King!

46 Why cybercriminals are eyeing Smart Building

38 The objective of Due Diligence is to entrench value

48 Why wellness needs to be a business transformation priority

42 Tackling the Future Head-on

Entrepreneur 14 The van Reenen Story Becoming a Mega-beef business 16 Black Industrialists - a key aspect in government’s commitment to grow South Africa

50 Online Shopping - How to keep customers

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20 Sustainable - Youth entrepreneurship in Africa is good for business 22 Intrapreneurship to lead innovation

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24 Why Africa could emerge as the new champion of flexible working CeO 2019 Vol 19.2

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52 Latency issues cloud the public cloud experience 54 How to put premium brands back into the aisle

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LIFEstyle 62 A South African commercial property off the municipal water grid 64 The Porsche Macan Blazing its own Trail 66 S10+ A Quick Perspective 68 The Toyota RAV4 - A True RAVOLUTION

IN the KNOW 56 Fire and Explosions 58 Nearly everyone has already been Hacked 60 Focus on Critical Factors brings Success

70 Fever Tree - Expanding Horizons

GLOBAL Expand your business Horizon

Publisher CEO Global (Pty) Ltd Tel: 0861 CEO MAG Fax: (012) 667 6624 Tel: 012 667 6623 info@ceomag.co.za www.ceomag.co.za Chief Executive Annelize Wepener annelizew@ceomag.co.za Director: Strategic Development & Editor in Chief Valdi Pereira valdip@ceomag.co.za Director: Corporate & Financial Services Carl Wepener carlw@ceomag.co.za Office Coordinator Mishka Hemila Ramdas mishkar@ceomag.co.za Business Development Manager Amesh Bisram ameshb@ceomag.co.za Joseph Gumbo josephg@ceomag.co.za General Manager: Global Services George Wepener georgew@ceomag.co.za Designer Maria Swart-Niemand marias@ceomag.co.za Associate Editor Terry Owen terryo@ceomag.co.za CEO Class Administrator Nyahsa Rugara nyashar@ceomag.co.za Tawanda Mandizvidza tawandam@ceomag.co.za Farai Mandizvidza faraim@ceomag.co.za Manager: Corporate Support Raymond Mauelele raymondm@ceomag.co.za

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* No article or part of an article may be reproduced or transmitted in any form without the prior written permission of the publisher. The information provided and opinions expressed in this publication are provided in good faith but do not necessarily represent the opinions of the publisher or editor. All reasonable efforts have been made to ensure the accuracy of the information contained in this publication. However, neither the publisher nor the editor can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages, or from any statements made in or withheld by this publication.

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FLIPside

The exciting vehicles Several major automobile manufacturers are predicting they will reach level four of autonomous driving by 2021 entailing that the car will be driving itself!

Technology continues to advance and these ever abiding progressions have played a major role in ensuring that companies continue to generate income both instantly and efficiently. The newest technology trends have taken over both the physical and digital world forcing several businesses to adapt instantly.

The introduction of

5G Wireless

For safety reasons, thumps-up to biometrics!

Both companies and individuals have to change their confidential information constantly to avoid being hacked by people who might hold them ransom once they have access to their classified information.

Biometrics is commonly used for body measurements and calculations but it can also be used in computer science for access control and identification of individuals who are under camera surveillance.

With no doubt, the latest technology is continuing to make rounds all over the world. Who have thought that they’d witness a 5G Wireless being the 5th generation of cellular mobile communications? As anticipated, 5G succeeds the previous cellular mobile communications, the 4G (LTE/ WiMax), 3G (UMTS) and 2G (GSM). The 5G performance targets high data rate, energy saving and massive device connectivity to name a few.

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FLIPside

ANU believes they have found a solution to a

gigantic challenge The Australian National University (ANU) has found a way to monitor and measure light particles along quantum circuits with the approach touted as paving the way to a safe “data superhighway” in the quantum world.

According to the ANU, its team has opted to design a system of detectors along the quantum circuits that can monitor light particles without losing the information stored by preserving the quantum state being transmitted.

Singapore power company establishes the first electric vehicle charging points Singapore utility group has established its first batch electric vehicle charging points at eight locations across Singapore making it easy to accommodate every electrical car driver.

The first 38 points are part of the utility group’s plans to build a local network of 1000 such sites by 2020, including 250DC charging options. The first 385 batches are located at public places such as educational institutions, commercial buildings and industrial sites, to name a few.

These electric charging points can approximately charge one’s vehicle for 30 minutes. The launch is definitely a game-changer for electric vehicle owners in Singapore.

Source: www.zdnet.com

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LEADING edge

Banking on

Innovation

and trust

By Valdi Pereira and Terry Owen

In this edition’s cover story, we speak with Luthando Vutula, CEO of ubank and discover how he’s facing the challenges in this rapidly changing sector, where disruption of business models and increasingly higher service levels expectations by customers, are turning a once staid sector into a vanguard of innovation.

W

ith banking undergoing massive disruption, it seems like there’s challenges around every corner. It’s being suggested that it is ultimately going to be a win-win for the sector and customers.

What’s your perspective on these disruptions?

There is no doubt we are in the midst of exciting times.

Banking and the business world in general, are changing rapidly and a big driver of this change is technology, along with the benefits it brings. Technology undeniably gives you advantages, in my view if it gives you a reduction in costs, improved efficiencies and greater convenience, it is a meaningful technological solution.

That being said, business fundamentals will always remain the same and I believe in our sector the pertinent question that will always be asked is: What is it that a person wants from their bank?

The first thing we all want is great customer service and secondly, we want to find comfort in a relationship of trust. A person must be confident with their banking institution because this forms the basis of their trust relationship.

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LEADING edge

The introduction of technology needs to pivot around these two issues. It needs to enhance the service experience and help to solidify that trust relationship. To achieve this I believe one needs to reflect carefully on how and where you are going to use technology. For your customers to embrace technology they need to easily understand and adapt to its use. If technology is not achieving this, it will not impress your customers and you run the risk of eroding your relationship with them.

What key markets are the ones that you focus on?

We are proud of our history in the mining industry and the service we provide this sector. Over time our position has evolved and today we go to market as a workers’ bank, your blue-collar workers to be more precise, so we don’t offer things like private banking. If a teacher or policeman is looking for a home from a banking perspective, we believe we should be their first choice.

Additionally, we recognise the important role SME entrepreneurs play and for those established SMEs which are two to three years old, we also offer a home. We have no ambitions of doing any complex corporate deals, bonds and the like, we are not in that space. We believe a strong focus on our core market will give us the results we need.

You joined ubank fresh from heavyweight banking giant Absa. What attracted you to this opportunity?

When I was at Absa, we were the biggest home loan financier. If I recall correctly at some stage one in three loans were financed by the bank. When the chance to join ubank came up it resonated with me on a personal level. I was raised in the Eastern Cape, more specifically the old Transkei and I felt it can be a way for me to contribute to the positive legacy of ubank.

It is also a different type of environment in the sense that it is hands-on. In this role I get the sense of making a real impact and it’s wonderful to experience. At large institutions, you have everything. After a while you take things for granted, in small companies you work hard to establish systems, create workable procedures and ensuring the basics are right. You realise that here you’re not just the boss,

you are an integral part of the team that must deliver on certain responsibilities.

It has been a fantastic challenge and I am really enjoying my role.

Against the backdrop of all the changes in the sector, what do you think the ideal product mix is going to be for ubank to ensure success going forward?

All businesses are striving towards ensuring they’re in a position where they are making sustainable profits.

In our case we generate profits through loans, which provides interest income and the non-interest income activities.

Currently there is a big push in the banking sector towards non-interest income opportunities and frankly we also believe this is a good opportunity. The question is how one makes this a sustainable opportunity that provides value for your customers?

We are working hard on this opportunity and valueadded products and white labelling is part of our future in this space. It also highlights one of the threats this sector faces. You can read on a multitude of platforms about the intentions the Telco’s have for the financial services sector. The future is going to be challenging and it is not just about coming up with the right product mix.

It is going to be about ensuring that we maintain the trust relationship we have with our clients because it is going to be a key fundamental to success. ubank has a unique physical infrastructure footprint when this is coupled with technology, it gives you a presence in far-flung places. Does this provide you with a significant business differentiator?

It comes down to understanding your customer base.

The fact of the matter is if you do not have a branch in some very remote rural regions, you’re going to struggle.

In those far-flung areas people still believe in face-to-face interaction and technology is a secondary consideration.

We are proud of our history in the mining industry and the service we provide this sector. Over time our position has evolved and today we go to market as a workers’ bank, your blue-collar workers to be more precise, so we don’t offer things like private banking. If a teacher or policeman is looking for a home from a banking perspective, we believe we should be their first choice.

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LEADING edge

Millennials bring with them the ‘must be able to respond instantaneously’ requirement, which can be pretty demanding on a business. On the other hand, they understand all sorts of different things, especially about technology, so there is an opportunity to build a different type of relationship with them. They know what they want and when they want it, so the challenge for us is to be able to respond in ways that fit their approach to life and business.

Of course there are certain affluent centres where there is no need for branches. If we marry technology with our bricks and mortar presence I think we can differentiate ourselves in those segments that we are targeting.

Data has become the holy grail of the financial services sector in recent years. Is it as critical a success factor as is being suggested or is it being overrated?

There is no doubt the more data you have on your customers, the better. Of course the key is to make sure you possess the ability to convert this data into meaningful information. If you can achieve this, then you can make much more informed decisions about potential customer needs and can easily provide a solution. Data is the now and the future, no question about it, and it’s going to be playing a much bigger role going forward.

Turning to the future and looking at millennials and the younger generation coming through, their requirements and expectations are quite different.

Do you think that ubank is positioned to match those needs?

Millennials bring with them the ‘must be able to respond instantaneously’ requirement, which can be pretty demanding on a business. On the other hand, they understand all sorts of different things, especially about technology, so there is an opportunity to build a different type of relationship with them. They know what they want and when they want it, so the challenge for us is to be able to respond in ways that fit their approach to life and business.

Do millennials pose an internal challenge for the company too?

There is need for all of us to adapt to a new way of working. Gone are the days when you had to be at the office at 8am and leave at 4pm. The focus nowadays is on output, as opposed to hours at work. This clearly suits millennials and their approach to work and life.

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From a business perspective the challenge is how you position your company as an attractive employer to this generation. It is something one has to give serious consideration to because if you are not an attractive option, you are not going to be able to secure the skills you need to carry your business forward.

In fact, internally we have a project in our IT department that is exploring ways to attract and retain millennials. We have purposefully elected to start in the IT department because we believe it is going to be one of the areas that will be critical to future success and we need to start preparing the ground for future success.

In your career you’ve held several executive positions.

In terms of leadership, what are the key lessons that you’ve learned in terms of leading people and delivering results?

For me the key lesson has been that you must seek to understand rather than being understood. When you work with people, if you really understand their needs and what makes them ‘tick’, then you find it becomes a lot easier to lead them effectively.

Furthermore, I believe you must lead from the front because people look up to a leader, in good times and bad.

Your behaviour as a leader plays a very important part in determining the culture of the organisation, you therefore need to be cautious of what you do and how you engage, if you want to build a strong culture.

When it is all said and done for you at ubank and you decide to pursue fresh opportunities, what do you hope your tenure at the helm of the bank will be remembered for?

If we can be known for two things – for having solutions for workers and being the best bank for SMEs, I will be satisfied. I believe if we can achieve this, the sky is going to be the limit because the market is big enough. If we can service these two areas fully and well, I believe that would be a great legacy.

Set your sights on your goals Grow your money to meet your goals – invest from as little as R1 000 for up to 60 months

For more information, go to www.ubank.co.za or visit your nearest ubank.

086000 8322 ubank.co.za Ubank is an authorised financial services and registered credit provider (FSP 14740) (NCRCP21).

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A MEGA-B

ENTREpreneur

BECOMING

A MEGA-BEEF BUSINESS:

The van Reenen story

Beefmaster PTY Ltd, a leading specialist producer of quality beef products, started out as small cattle feeding business in 1965 by Lourie van Reenen. Today, a family-run operation in the hands of Lourie’s sons Louw and Roelie van Reenen, it is the third largest producer of beef products in South Africa. What does it take to become a resilient business in the beef industry?

T

he answer, says Roelie van Reenen, Supply Chain Manager at Beefmaster, is cutting-edge innovation, combined with traditional family values. Beefmaster is involved in the entire value chain, from rearing and farming cattle to delivering meat-based products to customers. This requires many fundamentals that are not traditionally agricultural, such as fleet management of road trucks, earth-moving equipment, cattle health and feed, meat cutting and packaging, and fullyequipped workshops.

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Van Reenen says that operating in the agriculture sector can be tough, as there are factors outside of one’s control that impact the business. The only way to overcome these challenges is to be prepared, yet adaptable and flexible.

“For us, this means diversifying to hedge against tough times. For example, we believe that all cattle breeds have the potential to deliver exceptional beef products. This allows us to work with both established and emerging cattle farmers, regardless of the breed of cattle with

BEEF BUSINESS:

ENTREpreneur

“Our family-led business helps us to understand family-run cattle farm operations. What you do is not simply a job – it is your way of life. So family gatherings and conversations are fuelled by passionate discussions, and client relationships don’t simply exist only between business hours.”

He adds that treating customers and employees as family has helped define the business. “At Beefmaster we work together as one big team. This has played a major role in building our small-scale business into a successful corporation. Our employees are part of our family. We take great pride in their achievements and work with them to highlight how every task adds to the bigger picture. We have established a great culture inside the business.”

And how is Beefmaster able to provide cutting-edge innovation, and remain true to its commitment to tradition?

Left: Roelie van Reenen, Supply Chain Manager at Beefmaster

which they farm. There is a common misperception that we only work with farmers who farm with Beefmaster cattle, but this is not the case.”

Examples of other breeds of cattle that the brand accepts include Bonsmara, Brahman, Angus, Hereford, Simmental, Afrikaner, Nguni, Holstein-Friesian, as well as any cross-breed of these cattle, amongst others.

“We forge strong relationships with both established and emerging farmers to access a variety of cattle, regardless of breed, helping farmers boost the quality and sustainability of their herds by offering training, mentorship programmes and offtake agreements, amongst others,” says van Reenen. He adds that at the core of Beefmaster’s success is its relationships with all of its stakeholders.

“We have been a member of the South African Feedlot Association for close on three decades, meaning that we act as an industry voice to the farmers with whom we have a relationship, as we have their business interests at heart.” This further adds to Beefmaster helping farmers access new markets and solutions that provide stability and peace of mind.

“There is a wealth of knowledge that has been passed through the generations, but we need to keep asking critical questions and analyse how we can do things better. We’ve seen great success with new technology and learnt from global best practice. Being open to improving is how we are able to offer better and efficient solutions to farmers and customers alike.”

Beefmaster’s state-of-the-art technology, which allows the company to customise and “produce to order” for some of the biggest players in the food industry, tackles the dual challenge of increased competition, and how to produce the best possible beef cost-effectively.

Quality control and maintaining the highest health and safety standards are top priority, and Beefmaster enforces rigorous processes that have earned the company FSSC 22 000 food safety certification, recognised by the Global Food Safety Initiative (GFSI). As a major supplier to fast food chain McDonald’s, Beefmaster is the South African partner to pass that company’s stringent animal health and welfare audits consecutively for the past decade, ensuring both healthy animals and high-quality meat products.

Van Reenen says that the company’s future vision is to see more farmers reach the scale and high-quality herd standards required to take advantage of opportunities created by the beef industry.

“By working together we can open the door for good beef producers to increase their profitability, resulting in improved employment rates and the growth in our economy,” concludes van Reenen.

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ENTREpreneur

Black Industrialists - a key aspect in government’s commitment to grow South Africa

By Soria Hay, Head of Corporate Finance – Bravura

Soria Hay, Head of Corporate Finance – Bravura

The issue of black ownership continues to be a dominant aspect within the country’s transformation landscape. This was clearly articulated in the ANC 2019 election manifesto address by president Cyril Ramaphosa when he reaffirmed government’s commitment to working with the financial sector to increase industrial and enterprise financing for black industrialists as well as small businesses and cooperatives.

T

he Broad-Based Black Economic Empowerment (B- BBEE) Strategy is now going into its sixteenth year of existence, with the first B-BBEE codes having been published over a decade ago in 2007. Protracted negotiations on the various industry sector empowerment charters took place and vast sums of money have been committed to B-BBEE. Despite this, the evidence on performance suggests that the best endeavours have produced patchy outcomes, at best.

Black economic empowerment policies have not lived up to the expectation of bringing fundamental economic transformation to corporate South Africa. Although there are a number of B-BBEE success stories, many of these transactions have resulted in black people acquiring minority equity stakes, with little or no operational control or management input and little influence over the board of directors in the entity. Director-General of the Department of Trade & Industry (dti), Lionel October, has said that this country’s BEE policies have “resulted in empowerment partners becoming ‘junior’ partners in other people’s companies.”

Thus, there is now a strong drive towards black entrepreneurs owning ‘real assets’ rather than minority stakes in enterprises they did not establish. In support of this, the dti is putting significant effort into its black industrialist incentive programme to achieve what B-BBEE empowerment policies have so far failed to achieve - genuine and sustainable transformation.

The dti’s multibillion-rand Black Industrialist Policy was established in 2015, with the stated intention to promote the creation and long-term sustainability of black industrialists. It describes black industrialists as black people directly involved in the origination, creation, significant ownership, management and operation of industrial enterprises. The dti set an original target of supporting 100 black industrialists by March 2018, funding black businesses with the potential to become large and dynamic enterprises. The policy emphasises entrepreneurial leadership, majority equity shareholding

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or financial interest, significant influence on strategic direction, and executive participation or managerial control over operational activities.

If direct ownership of companies and active involvement in strategic decision-making are crucial to ensuring genuine economic transformation, it is important for business and government to be clear on the intent, definitions and requirements of the black industrialist programme, and how it is differentiated from overall transformation and B-BBEE drivers.

How is a black industrialist identified?

The dti describes black industrialists as “black South Africans who own and, through significant shareholding, control an enterprise whose products are significantly used and have a considerable impact on decent employment and create broad-based economic opportunities”.

As such, black industrialists must be directly involved in the strategic and operational leadership of the operation and have the requisite expertise. They should take personal risk in the business and be locked in for a reasonable timeframe to the entity. The dti policy requires black industrialists to have a high level of ownership (>50%) and/or exercise control over the business.

The dti policy targets entities or individuals that have extensive experience, operations and track record in their respective or envisaged industrial sectors and value chains. Within ten years of being on the programme, it is expected that the entities supported will expand their current operations to become major players in the domestic and/or global markets; start a new operation or business that can enable them to become major players; or acquire an existing or new business that can enable them to become major players.

How are black industrialists financed?

The challenge of access to finance has been one of the main constraints confronting black entrepreneurs. Lack of equity capital also has an adverse impact on black businesses’ cost of debt funding.

ENTREpreneur

A contribution to equity capital reduces the risk profile of a black business and thus unlocks funding opportunities for banks to participate in a more meaningful way. Access to requisite equity and loan funding at appropriate terms is therefore paramount to the successful implementation of the Black Industrialists Programme.

The dti set aside R1 billion to invest in seed capital into qualifying black manufacturing enterprises so as to equip them with the necessary equity capital to gain access to the private banking funding sector.

The Black Industrialist Scheme (BIS), the incentive component of the policy, offers a cost-sharing grant ranging from 30% to 50% to approved entities, up to a maximum of R50 millions of project costs.

This can go towards the capital investment costs, feasibility studies towards developing a bankable business plan (for up to 3% of the total investment), post-investment of up to R500 000, and business development services to a maximum of R2 million. The quantum of the grant depends on the level of black ownership and management control, the economic benefit of the project and the project value.

Beneficiaries can further apply for concessionary loan finance from the Industrial Development Corporation (IDC). The IDC set a five-year target in 2016 of R23 billion in disbursements to black industrialists, with an additional investment of R100 billion for expansion over the same period.

In the IDC’s 2018 annual report, it was reported that a further R7.9 billion (for 113 transactions) in funding has been approved for black industrialists. Minister Ebrahim Patel noted that since the inception of the IDC’s Black Industrialists Development

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ENTREpreneur

Programme and based on the five-year targets set in 2015, it has approved 67% of the original amount of R23bn.

The dti announced in October last year that it has so far financed 128 projects, surpassing its original goal of supporting 100 black industrialists, resulting in investment of R11.1bn. Since its launch in November 2015, the BIS has supported 79 projects owned by black industrialists, empowering them to leverage projected investment of R7.2 billion. These are estimated to result in the retention of almost 8 000 baseline jobs and the creation of 9 459 new jobs.

Successful recipients include multimillion-rand Microfinish Automotive in KwaZulu-Natal, which last year received R13.5 million. The business manufactures and supplies valve guides and valve seats to original vehicle manufacturers and after-market service providers to a client base that extends to Europe and the Middle East.

Because of high barriers to entry, limited marketing capacity, lack of capacity to explore niche and overcrowded markets, high transaction costs and poor market research, many new black entrants to the industrial sector find it difficult to access relevant markets.

Another example is Maneli Pet Food which was launched in Gauteng in September 2017 and has received R50 million.

Limpopo-based agro-processing company, Eastern Trading (trading as Dursot All Joy) has benefited from a R48-million grant from the dti to create 800 local jobs. The grant has enabled the company, which found a niche in the agro-processing sector, to install modern technology that enables them to triple their production outcome.

Similarly, the Land Bank administrates a dti fund aiming to assist producers who are at least 60% black with the development funding on new projects.

The dti will assist a further 100 black industrialists over the next two years. The Ministry has said that the slowdown in manufacturing would not slow down the government-backed funding scheme, noting that even though the economy is not performing, the country can ill-afford to hold back on what is an essential programme.

Market access Because of high barriers to entry, limited marketing capacity, lack of capacity to explore niche and overcrowded markets, high transaction costs and poor market research, many new black

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entrants to the industrial sector find it difficult to access relevant markets. These factors result in limited access to appropriate networks, making market penetration extremely difficult. Barriers to entry are also created in cases where already established networks block new entrants to market.

At the Inaugural Black Industrialists Roundtable Dialogue in October last year, beneficiaries of the BIS highlighted in particular the problems of market access and penetration of established industries as a critical challenge for most black industrialists as they seek to expand their products and services locally and internationally. And in a recent CNN International feature on the BIS, a beneficiary of the scheme reinforced this concern by saying, “Our biggest challenge is market access. The government thinks that they can solve our problems by just giving us funds all the time.”

Besides funding and access to markets, black industrialists benefit from important training and capacity building, matchmaking and information sharing, research and innovation support, quality standards and productivity support and economic infrastructure support – including Special Economic Zones, industrial parks and clusters. High-end operational and financial management skills are certainly required to manage critical cash flows in the low margin industrial environment, ensuring that growing enterprises can be successful.

Key concerns Government has stated that despite commentators predicting that the BIS would be open to corruption and favouring those who are ‘politically connected’ this has proven false due to the dti’s strict due diligence and strong management oversight as evidenced in the department’s clean audit for 2017/2018.

However, media reports suggest that several of the beneficiary companies that received funds from the IDC last year involve former and present executives of a range of state-owned entities, as identified from the list of beneficiaries published on the corporation’s website. In response, the IDC has said that politicallyconnected people were not automatically excluded from IDC loans, but their loan applications were subjected to stringent checks.

Rather, the intention would be to ensure that the integrity of the investment decision-making process was not compromised by the presence of politically-influential persons in transactions.

The role of the private sector The long-term success of the policy will require innovative tailormade funding solutions that address both the financial position of the entrepreneur and the economic realities of the targeted business.

The business community must think innovatively about economic participation, industrialists and how we can assist to create the next level of black entrepreneurs. There are innovative ways to structure economic inclusion.

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ENTREpreneur

Rory Moore: Liquid Studio Director and Innovation Lead for Accenture in Africa

SusTAINABLE

By Rory Moore: Liquid Studio Director and Innovation Lead for Accenture in Africa

youth entrepreneurship in Africa is good for business:

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ENTREpreneur

The impact and benefits of enterprise development The Oxford Dictionary defines the word ‘yas’ as an informal way to express great pleasure or excitement.

The YAS! Youth for Africa and SDGs (www.yasdg. com) – short for the United Nations Sustainable Development Goals - initiative by the United Nations Development Programme (UNDP) and Accenture anticipates this reaction from its users.

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cross Africa, unemployment levels remain high despite a fair number of youth preferring tertiary education. There are 200 million Africans aged between 15 and 24 that make up more than half of the unemployment statistics on the continent.

According to the UN, the world’s population will have grown by 2.2 billion and half of those people will be Africans. The implications on the labour force will be significant if the current trends continue.

Entrepreneurship is a key factor for development in emerging markets because the new businesses created have the potential to accelerate innovation and introduce new competitors to existing structures, thus contributing to productivity.

According to a study by the Global Entrepreneurship Monitor (GEM], in conjunction with Youth Business International, up to 60 percent of 18 to 34-year-olds were optimistic about their business prospects and believed they had the skills to successfully start a business. The report further showed that at 29 sub-Saharan Africa has the highest number of young people involved in new businesses.

While youth are taking up entrepreneurship, there are still some barriers to entry that are significant enough to mean that the idea is not viable for all. There may be a lack of access to information, inadequate funding, or simply missing the right connections.

Networking is widely accepted as a standard for fostering and growing business relationships. However, there is a certain exclusivity in that many business networks are wary of working with new entrants and would rather support mature entrepreneurs rather than young ones. Societal and parental attitudes tend to view entrepreneurship in a negative light, with parents encouraging their

children to settle in traditional career choices and this often means that have little to no support from their home environments.

In many African countries, one hardly sees various sectors working together to improve access to finance and skills and this has only slowed down the rate at which the continent becomes self-sufficient.

For these reasons, the UNDP teamed up with Accenture to create YAS!, an online entrepreneurship portal-platform that serves a young, pan-African audience. Its objective is to cultivate a mindset of job creation and individual businesses that can contribute to Africa’s sustainable development The online platform, which services all of Africa, speaks to the four main pillars of entrepreneurship, namely information, mentorship, funding and network. This is in line with several of the SDGs of the 2030 Agenda which is directed at ending poverty, protecting the planet and ensuring people live in peace and prosperity.

The YAS! platform targets entrepreneurs and start-ups as well as private donors, venture capitalists and incubators seeking businesses either already involved in an acceleration or incubator programme, or those requiring funding.

The impact and benefits of such an initiative are innumerable and could not have come at a better time for Africa. By awarding financing for youth to develop and implement innovative ideas, YAS! is sending a message that no matter one’s background or current situation, young Africans can access opportunities and effect change in their communities.

By offering practical information on the key concepts of enterprise development, YAS! is helping to build an Africa where youth are more open to entrepreneurship as a viable alternative to earning a sustainable living. The portal provides services such as business plan development and aims to create an ecosystem map for corporates and start-ups, which will locate and connect various entrepreneurial service providers across the continent. Young African entrepreneurs now have access to knowledge about how to acquire funding, implement their innovations, and network and pitch their innovative ideas.

Many young Africans are motivated to address social and environmental issues for prosperity. For decades, Africans have run small-scale businesses to support their families, make a profit and even create jobs. With the digital revolution ushering in a new wave of entrepreneurs that seek to do more than just make a profit, the YAS! online platform is well-placed to be an interactive and current forum in that it is constantly being updated with fresh content from African writers, thought leaders as well as corporates.

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ENTREpreneur

Organisations innovation change opportunities encouragement empowerment creativity rewarding technology initiative benefits inventions ideas attitude art education planning recruitmEnt teamwork quality

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to lead innovation

ENTREpreneur

Employee “intrapreneurs” could hold the key to unlocking innovation for South African business faced with the twin challenges of growing local productivity and jobs, and keeping pace with rapid global technology advancement and the demands of increasingly sophisticated consumers.

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resident Cyril Ramaphosa, in his opening address to the SA Investment Conference last month, highlighted that “we are determined to build a country that is driven by enterprise and innovation” while the World Bank has urged South Africa to harness its “largely untapped potential for innovation.”

Dr Salome van Coller-Peter, head of the MPhil Coaching Management programme at the University of Stellenbosch Business School (USB) says , “Change is now the only constant.

Companies embracing it are succeeding while those that don’t are forever playing catch-up, and this is where encouraging and rewarding intrapreneurship can make the crucial difference.”

By supporting and rewarding idea generation within the company, those with smart ideas are more likely to stay within the company, which in turn benefits the business in staying ahead of the game in a highly competitive business environment.

Intrapreneurs – employees who think and act like entrepreneurs, driven to uncover new opportunities and find new ways of doing things – are valuable sources of innovation and sustainable competitive advantage because of their inside knowledge of the business and organisational culture, she said.

While examples abound of game-changing innovations that emerged, often by accident, from within a company workforce – Sony’s Playstation and 3M’s Post-It notes are two such – Dr van Coller-Peter says successful intrapreneurship relies not only on individuals who have the right “natural ability, personality, curiosity and guts”, but also on an enabling corporate environment.

“If innovation through intrapreneurship is to be more than a one-off lucky break, then encouraging it must be a decision made and supported by top management. It must be organisation-wide and institutionalised, with an

empowering environment that fosters a culture of cocreativity – allowing for risks to be taken, within boundaries, and mistakes to be made, and offering worthwhile recognition or reward,” she said.

She points to the example of First National Bank, which last year awarded over R10.5-million to employees who came up with “game-changing innovations” to re-invent banking processes and use technology to provide better service to customers. FNB has awarded R54.5-million to staff since launching the programme in 2004, and implemented over 10,000 employee-generated ideas.

“Organisations need to make the decision to encourage employee innovation, to create a culture of allowing mistakes, risk-taking and taking initiative and to recognise such employees publicly.”

Dr Van Coller-Peter says the financial benefits of innovation need careful consideration too. “Rewards and recognition are one thing, but there may also be a need to think about further incentives such as co-ownership of intellectual property or patents,” she said.

Business needs to ‘think intrapreneurship’, she said, taking a leaf from leading innovators such as Google by allowing thinking time, time to work on innovative ideas, allocating financial resources, establishing a system for proposing and approving new ideas, and deciding how to monitor and evaluate progress.

“A forum for pitching new ideas and inventions is an option, but it must be led by people with influence and decision-making power, as well as an appetite for creativity, renewal and a healthy measure of risk-taking,” she said.

Flatter, less bureaucratic organisations are more conducive to intrapreneurship, as well as “recruiting with intent” to find employees with the right abilities and attitudes, she said, although entrepreneurial flair is not suited to all positions and the creative risk-takers need to be balanced with employees with attention to detail and execution abilities.

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Africa’s economy will grow faster than any other continent’s over the next five years and flexible working is a huge part of that future.

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he African workforce is mushrooming, and by 2035, its numbers will have increased by more than the rest of the world’s regions combined.

According to World Bank analysts, this expanded working-age population could lead to a growth in GDP of up to 15 percent – equivalent to doubling the current rate of growth in the region.

The World Economic Forum is bullish on the economic possibilities. “This could dramatically raise labour productivity and per capita incomes, diversify [the] economy, and become an engine for stable economic growth, high-skilled talent and job creation for decades to come,” says Richard Samans and Saadia Zahidi, authors of The Future of Jobs and Skills in Africa.

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Why Africa could emerge as the new champion of flexible working But of course, it’s not quite that simple. Only recently the International Labour Organisation warned that both sub-Saharan Africa and Northern Africa are facing challenges in terms of job creation, quality and sustainability.

Despite the creation of 37 million new and stable wagepaying jobs over the past decade, only 28 percent of Africa’s labour force hold such positions, according to a McKinsey Global Institute report. Instead, some 63 percent engage in some form of self-employment or ‘vulnerable employment’, such as subsistence farming or urban street hawking.

Add to this the logistical difficulties for the stable wage-paying workers in actually getting to Africa’s urban centres. Millions in the continent’s congested cities endure long, difficult commutes. Kenya, Algeria and Central African Republic hold three of the top four slots for longest commute times in the world , while recent data shows

ENTREpreneur

Africa has already seen significant technological investment in its major cities, including increased access to mobile broadband, fibre-optic cable connections to households, and powersupply expansion. This, combined with the rapid spread of low-cost smartphones and tablets, has enabled millions of Africans to connect for the first time. that poor transport could cost South Africa’s economy a huge 104 billion dollars a year.

The result is stagnation and emigration. Sub-Saharan Africa has the highest emigration rate globally (1.5 percent, against a global average of around 1 percent, according to UN population statistics), due to a lack of decent work opportunities.

On the cusp of change Yet change is coming. According to the World Economic Forum, Africa stands to benefit in a big way from the Fourth Industrial Revolution. While the First Industrial Revolution used water and steam power to mechanise production, the Second used electric power to create mass production, and the third used electronics and IT to automate production – the Fourth fuses technologies such as AI, robotics, the Internet of Things, biotechnology and quantum computing.

Africa has already seen significant technological investment in its major cities, including increased access to mobile broadband, fibre-optic cable connections to households, and power-supply expansion. This, combined with the rapid spread of low-cost smartphones and tablets, has enabled millions of Africans to connect for the first time.

And as the Fourth Industrial Revolution unfolds, Africa is poised to develop new patterns of working. In the same way that mobile phones have allowed some regions to bypass landline development and personal computers altogether, Africa may be uniquely positioned to jump straight past the adopted working model in other countries to a more liberated future of remote and flexible working.

A new way of working In many ways, flexible working is the perfect fit for a continent with a geographically diverse, workready population and a strong mobile communications network, which lacks the infrastructure to support urban working patterns. Why insist on big hub offices and long commutes when there’s a way to harness talent from across the continent? Instead, the solution could be a distributed, virtual workforce, with companies that integrate virtual freelance workers.

It’s already starting to happen. A report on trending professions in Africa in the last five years shows that the number of entrepreneurs has grown by 20 percent. And online platform work is on the rise, allowing many of these entrepreneurs to launch innovative start-ups that solve real-world problems and create jobs.

One example is Gawana, a Rwanda-based ridesharing company co-founded by African entrepreneur Agnes Nyambura. The new company solves a problem – long-distance transport that gets people from A to B affordably – and provides job opportunities for East Africans. Travellers making their usual journeys are able to advertise any spare seats in their car using the Gawana app and earn money for the trip by ‘working remotely’ from their car – in other words, simply driving to their destination.

Another example is Lynk, a Kenya-based start-up app that connects users to their desired service providers – be it an accountant, a graphic designer or a personal assistant. With one in six people unemployed in Kenya, previously these skilled individuals might have struggled to find formal employment. Now they’re able to open the app, accept a job, and often work remotely to complete their assigned tasks. This system is also better for the worker, who’s able to track his or her hours and obtain references that help to secure further work.

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ENTREpreneur

A growing demand for African coders Big global businesses are already starting to recognise the untapped potential of Africa for their tech needs, in the same way that companies did with India 25 years ago. In the new world of work, remote employees don’t even have to be on the same continent – let alone the same office as their employers.

For example, Moringa, a Nairobi-based coding school that develops African tech talent, trains more than 250 new students a year. Its graduates go on to work remotely for the likes of global bank Barclays, which has offices in countries including Kenya, Ghana, Botswana, South Africa and Zambia, and Safaricom, an East African telecommunications company.

As African cities such as Nairobi, Lagos and Kigali become major tech hubs with a wealth of well-trained tech experts at hand, global job opportunities abound. And, because of technology, individuals can work from their home countries rather than move to the countries where big multinationals reside, thus contributing to local economic growth.

An office away from the office Flexible workspaces are becoming an essential part of a modern country’s business infrastructure. “For us, a high degree of interest has come from local and international businesses willing to establish a footprint in Angola, as well as from companies that need to rationalise and downsize unused resources, namely office space,” says Rui Duque, Regus Country Manager for Angola.

Two major brands that have used Regus to grow in Africa, are Google and P&G. Google has 50 employees with Regus in Kenya, and P&G has 100 employees in the country. Though they have the finances and resources to build their own offices, start-up costs can be

expensive in developing countries, and getting an office up to spec with high-speed broadband, useable meeting rooms and desk space can take up valuable time. Plus, using flexible office space reduces the commitment for these big organisations, many of whom are still testing the water in new African cities.

African businesses are using flexible working as a way to attract talent. In a recent survey by Regus, senior executives and business owners confirmed that flexible working could be used to avoid employee churn (and the consequent expense of recruitment agencies), with 71 percent of respondents pointing to flexible working as a perk that attracts top talent.

Flexible workspace is also a preferred option for workers.

Seventy-seven percent of African workers said they’d choose one job over another similar one if it offered flexible working, while 56 percent would actually turn down a job that ruled out flexible working.

An exciting future According to the World Economic Forum’s Global Competitiveness Report, the most competitive countries in the world are those that nurture innovation and talent in ways that align with the changing nature of work If the trends of the past decade continue, Africa will have created 54 million new, stable wage-paying jobs by 2022. It seems clear that remote and flexible working will be a huge part of this growth.

Flexible workspace is also a preferred option for workers. Seventy-seven percent of African workers said they’d choose one job over another similar one if it offered flexible working.

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Dawid Mocke Four-time World Surf Ski Champion

Colour could save your life.

Wear a life jacket and bright colours when out paddling.

CeO 2019 Vol 19.2

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PERSPECTIVE

Operational resilience:

the key to organisational resilience Building operational resilience must be seen as a key driver of organisational resilience, says Karen Humphris, Senior Manager: Advisory Services, at ContinuitySA. Speaking during this year’s Business Continuity Awareness Week, Humphris argued that building operational resilience is central to building a resilient organisation.

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oday’s business environment is both complex and volatile; in response, organisations are focused on becoming more resilient and able to adapt to change as it occurs. The more resilient an organisation is, the less likely it is to have to invoke its business continuity plans,” she says. “Building operational resilience is key to building organisational resilience because it addresses how the organisation acts in a resilient way.

You can’t have the one without the other.”

Operational resilience is defined as the techniques that enable people, processes and IT systems to adapt to changing business conditions. In building resilience, organisations need to anticipate and prevent risks from materialising through risk management, and in the event of a disruption occurring, they need to know how to recover through the business continuity plan. Operational resilience, which confers the ability to adapt to change and withstand disruptions, is what bridges the gap between these two.

Essentially, says Humphris, operational risk can be seen as what organisations must do in order to become resilient.

In building operational resilience, organisations face certain challenges, including the dynamic business landscape, in which strong competition and expanding customer expectations create the need for a highly flexible organisational structure.

Traditional silo business structures and reporting lines are barriers to operational resilience; organisations are also liable to find themselves short of vital skills and capabilities. Leadership shortcomings can add to the challenge. Heterogeneous technologies, inaccessible information and outdated strategies can also hamper efforts to develop operational resilience.

“To build operational resilience, it’s vital to have a dynamic approach that covers all key dependencies, has the right

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governance in place and, critically, the right people,” says Humphris.

“Every effort needs to be made to create a culture of resilience in the organisation.”

She argues that it is important to approach operational resilience in a structured way, advocating a fourfold operational resilience framework. This framework aims to provide a bird’s eye view of the organisation’s vulnerabilities and points of failure, as well as to outline the right decision-making capabilities to manage these vulnerabilities, and how these vulnerabilities should be integrated into the existing risk-management principles (depending on risk appetite).

The four steps to building an operational-resilience framework are: Define the organisational structure.

Analyse the functions within each structural component.

Classify the points of failure.

Establish how to manage these points of failure in line with the organisation’s risk appetite and particular circumstances.

It’s very important to keep in mind that each organisation is unique, so these steps must be customised appropriately.

“If the framework is put in place, the overall business will become more resilient and it will be better able to allocate capital and resources to mitigate risk more effectively,” she concludes.

“Proactive management of operational resilience will also provide stakeholders, including regulators and business partners, with some level of assurance that the organisation has a methodology for identifying challenges to its sustainability, minimising the impact on them.”

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CeO 2019 Vol 19.2

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PERspective

Noblesse oblige There are many lessons that slick branding gurus can learn from the careful husbandry of one of the wine world’s oldest brands: a wine produced at the tip of Africa that is recognised and revered around the globe.

If

there is a South African wine that can claim global brand status, it is Vin de Constance. Today, the golden Muscat-based nectar has earned back the status it enjoyed from the 18th century until 1898, when phylloxera invaded and devastated the Cape wine industry.

It was Ross Gower and Duggie Jooste who had the foresight to clear the commercial timber being farmed at Klein Constantia and plant vines that would see the rebirth of Vin de Constance (see sidebar). But it was the investments and business decisions made during Hans Aström’s tenure as Managing Director, that have seen the farm and its flagship wine reach global recognition as iconic names in this incredibly competitive industry.

‘Key was the decision to appoint Hans Aström as Managing Director,’ says Wine négociant and maven Wade Bales. ‘With 26 years of experience in the international wine business, Hans set about building a

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team of specialists to solidify Klein Constantia’s position as the iconic South African wine estate and re-establish the brand on the world stage. With typical Swedish precision, and the backing of the owners, Hans’s priority was ensuring he had the right people in the critical winemaking and viticultural positions.’

Aström himself says, looking back, that the boldest and best decision he made was to promote Matt Day to winemaker at just 25 years of age, assemble an excellent team to support him (including farm manager Craig Harris and foreman Carlo Prins) and build a special sense of community at Klein Constantia. ‘All great brands are built from the inside by the people working for you. I am just the visionary coach,’ he says.

When one examines Aström’s carefully managed development of both the farm and its wines, one can see just how visionary he is.

PERspective

Take his statement: ‘It is obviously important to have excellent water for the cellar, and Klein has the best and cleanest water in the valley, collected from rain.’ What he omits to mention is that long before the City ever cooked up Day Zero, Aström stopped all irrigation and installed a water treatment plant able to supply the entire farm. In the same year. He also reviewed effluent wastage and set up collection points for grey water. A replanting programme of more resistant root stock that require less water was instigated, the latest trellising and pruning techniques were applied, and erosion control was implemented.

All in 2012, Aström’s first year at the farm.

The next year, solar panels were installed and since then the estate has run independently of the City’s water and electricity grids. Also in 2013, ‘Klein’ grapes and wine were the first in Constantia to be certified organic and farming operations were converted to biodynamic practices including lunar calendars. As a result, grape quality and production improved dramatically.

There has been no sitting back and enjoying the fruits of his labour – Aström’s relentless pace of carefully planned innovation has never flagged. From 2014 to 2015, a state-of-the-art winery was built (on time and within budget), Vin de Constance’s packaging was reviewed, and the iconic bottle re-engineered for better aging. Since then, the homestead has been completely refurbished, the tasting room and offices rebuilt and a restaurant launched.

A joint venture with one of France’s most prominent Sauvignon Blanc producers, Pascal Jolivet, was entered into; an MCC Reserve and Anabel Rose were launched, along with Vin de Constance in a magnum.

Results from the improved farming methods Aström instituted in 2012 and through the seven years since then have been dramatic. Investment in infrastructure and a talented young winemaker has also paid dividends. In

addition, new markets have been explored and secured for Klein Constantia’s wines.

Aström has put his economics degree to excellent use.

Vin de Constance is now one of most successful sweet wines in the world with sales and profitability that have increased 10-fold. And from September 2019, it will be distributed by three of the most prestigious Bordeaux négociant houses (making it the first ever South African wine to be listed on the famous Place de Bordeaux).

‘To be compared with the best, we have to play with the best. The Bordeaux initiative shows that we have achieved our ambition. Vin de Constance is up there with the real icon wines of the world,’ says Aström, adding thoughtfully, ‘The wind blows from all directions when you’re sitting at the top.’ One can only imagine the plans he has to keep his beloved ‘Klein’ up where she belongs.

What are Hans Aström’s five most important business principles?

His response is interesting and telling: Be yourself and be authentic.

Keep your promises and your word.

Value your partners, not just your business.

Wine is a long-term, often generational, business – think big and think long term.

Finally, enjoy what you do.

‘I possess a fierce determination to make Klein successful for the next 330 years – I have huge pride and joy in seeing my strong, happy team working together and succeeding,’ he concludes.

Here is a man who understands that the privilege of managing the noble wine of Klein Constantia comes with weighty responsibility. How lucky for us and for future generations that ‘Klein’ is in his hands.

Unrivalled provenance Constantia is the oldest wine-making region in the world outside Europe and its sweet wine, produced from vines first planted here in 1685, is described as one of the world’s most mythical wines and South Africa’s most iconic.

World leaders who are recorded fans include Prussian Emperor Frederick the Great, Marie Antoinette, George Washington, Louis XVI, Napolean, Louis Philippe I, Thomas Jefferson, and Bismarck. Sheridan, Dickens, Austen and Baudelaire wrote about it.

“In the 1980s, when the Jooste family purchased Klein Constantia and decided to create Vin de Constance, they were advised

by Professor Chris Orffer, the former head of Stellenbosch University’s Viticulture Department, who had spent four decades investigating all aspects (historical, viticultural and oenological) of the once world-famous Constantia wines,” writes Joanne Gibson. “Working closely with viticulturist Ernst le Roux, Prof Orffer oversaw the selection and propagation of a special clone of Muscat de Frontignan, possibly descended from cuttings originally imported by Jan van Riebeeck in 1656. The maiden Vin de Constance 1986 was released in 1990.”

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As our a alw ys ld hou views s nder nu be take ent advisem

what’s HOT or NOT

We share brief perspectives with you on items that we think are worthy of your consideration. www.zdnet.com

Have you heard about the SmartThings Leap Motion? connects several devices at once SmartThings aims to enter the history books by creating a device that will also connect to other devices. It intends to connect digital or non digital devices together to benefit the user. This device may help the user to save time and energy. You could track who’s been inside your house, turn on the lights while you’re entering a room, shut windows and doors when you leave the house.

Leap Motion intends to shock the world by creating a more advanced idea that will allow people to control their desktop using their fingers but without touching the screen. It will allow the user to scroll the web page, zoom in the map and photos, sign documents and even play games through hands and finger movements.

More work for your eyes and Getting to know the less work for your hands Project Fiona

Thanks to the Eye Tribe Eye tracking it’s definitely not a child’s play and it has been an idea that has proved to be a challenge for tech specialists. Eye Tribe successfully managed to create the technology that will allow users to control their tablets and play flight stimulator only with your eyes movements.

It’s mainly taking the ordinary eye-tracking technology and merging it with a front-facing camera as well as some serious computer-vision algorithm, voila and fruit slicing done with the eyes.

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Project Fiona is the first generation of the gaming tablet. It features next generation Intel® Core i7 processor geared to render all your favourite PC games, all at the palm of your hands.

that paint a picture to the listener’s minds Oculus Rift is regarded as one of the best 3D headsets in the market, being able to convince the user mentally that they are actually inside a video game. In the Rift’s virtual world, you could turn your head around with ultra-low latency to view the world in high motion display.

EDitorial

SOUTH AFRICA: Local events exceed global standards South Africa is often seen as lagging behind the global curve. In the technology space, for example, the country has often been considered about five years behind developed countries. As Industry 4.0 revolutionises the digital workplace, however, a global shift is reducing the gap between markets across industries. The South African events industry is one which has, in many ways, exceeded global standards.

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he recently held Middle East Special Event and Exhibition Show (MESE)* featured more than 30 live seminars, hosted by more than 40 expert speakers addressing over 2000 event professionals and 100 suppliers from 32 countries.

Key topics revolved around developing the event of the future, embracing technology and artificial intelligence (AI) to revolutionise events, and creating excellent visitor experiences and enhanced engagement.

After attending MESE, held in Dubai, event experts evaluated the latest competing solutions and trends in the events industry and found South Africa to be well ahead of the curve. “As we considered the global trend to integrate technology into show experiences - to use technology to create a best in class visitor experience - we noted that the innovations presented were already in play locally,” confirmed Janyce Dalziel, Chief Executive Officer of Currin’t Events.

“As was explained at the MESE event, we’ve moved from a culture where delegates are asked to switch off their mobile

Janyce Dalziel, Chief Executive Officer of Currin’t Events

devices, to telling them to turn their phones on and engage,” adds Kim Currin, Currin’t Events Event Director. She agrees, however, that the message should still be the main focus. “A fine balance is required to integrate tech and innovation, without overshadowing the true focus of the event.”

Across the country, forward thinking events coordinators are already incorporating AI and innovative applications to enhance guest experiences. “From driving greater guest engagement, to interactive agendas, digital breakaway sessions and information centres it is clear that events are evolving as the industry embraces digital transformation,” says Dalziel.

While the ‘wow’ décor, lightshows, bots and drone technology enhance the visual aspect of the event, the basics are also augmented. “When guests enter with ease through a digitally driven registration system, are empowered to engage, vote or give feedback online, or can listen to different tracks in one exhibition hall on silent headphones, the entire event experience is enhanced,” states Currin.

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PERspective

Organisation as

Servant-Leader

By Len Brand

Len Brand, Chief Executive Officer at TATA Africa Holdings and Head of Distribution Vertical at TATA International

When I stepped into my current role in August 2016, the business was not in good shape. It was spiralling downwards, had been making losses for three consecutive years, and were facing yet another loss. Unsurprisingly, the people were very unhappy, just coming to work to earn a salary. I was well aware of the scale of the challenge that lay ahead.

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PERspective

At

Encouraging a participative approach to decision-making leads to a higher level of engagement and innovation, and helps build a sense of community within the team. It is important however to remember that, as a servant-leader, you can’t avoid making unpopular decisions, or giving team members negative feedback when it is required. Servant leadership is about Servant leadership focussing on satisfying the highest-priority needs of others Servant leadership has nothing to do with being subservient – not their feelings. or submissive. The core premise of the ‘service to others first’ You have to prioritise the personal and professional philosophy is prioritising other people’s needs over your own. development of your people, and empowerment should follow an Humility is an absolute prerequisite for this management style, as orderly and structured approach. Coaching and mentoring your your overarching goal is to achieve authority, rather than power. people has to take precedence To establish and execute over personal elevation. You strategies which drive growth “I had the pleasure and privilege of serving with Len Brand have to lead by example to in revenue and profitability, on the board of TATA Africa Holdings, for three years. During reinforce the spirit of service to lead cultural and process this period the company went through tough times and to others, and encourage change, and to build consensus difficult decisions had to be made. Len, in his capacity as CEO, mentees to prioritise serving and develop high-performing impressed me with his clear vision and his ability to develop others over self-gain. teams, you need the buy-in and implement a new strategy which gave rise to a much of your people. To do this, you more focused, profitable entity. In his leadership role he gave Organisation as servantfirst have to earn their respect direction, demonstrated his courage and earned the trust, leader and trust. respect and confidence of his people. Len leads by example in It should be noted You have to create an terms of his principles and values, and he delivers results. He that organisations – not environment where your is a humble leader who doesn’t use positional power, but one just individuals – can also people want to come to work who earns the commitment of his people by caring about be servant-leaders. The every day. Human beings have them. Len is hard headed when it comes to results, but he has ‘institution as servant’ is an innate need to belong, a gentle heart when it comes to people. He leads with a firm something which I think TATA so you have to build a sense hand but a gentle touch. He has created a workplace where does extremely well. of unity and wholeness in humanity flourishes and where people live their passion and the organisation. In order to Founded in 1868 by realise their potential. In summary, Len is an inspirational, help people foster bonds and Jamsetji Tata, the legendary caring and effective leader.” build relationships, you have “Father of Indian Industry”, and to provide opportunities and one of the most important – Brand Pretorius, retired CEO of McCarthy Limited and spaces for them to interact with founders of the modern Indian executive director of Bidvest Group, currently member of one another, informally, across economy, the TATA Group of the Advisory Board of the Motor Industry Ombudsman the company. companies is India’s only valueof South Africa, and serving as a non-executive director To inspire and motivate, you based corporation, and the on several boards, including TATA Africa Holdings have to convince rather than country’s biggest conglomerate. rely on coerced compliance. To Tata was the epitome of optimise your influence, you a servant-leader. He believed have to persuade rather than rely on hierarchical dominance. You that in order to advance a nation, you need to uplift the best have to be a solid role model and an advocate for your people – and the most gifted, so that they can go on to be of the everyone in your team should know that you’re there for them. As greatest service to humanity. Most significantly, he believed that a servant-leader, you have to make yourself visible, accessible, and the community is not just another stakeholder in a business, available. You have to check in often with your people to see how but the very reason for its existence. In other words – institution they are. You have to look them in the eyes, and engage them in as servant, or organisation as servant-leader. meaningful discussions. You have to listen, empathise, and make an effort to acknowledge things from their perspectives.

Virtuous cycle of servant leadership No-one likes to be micro-managed. People get de-motivated The ‘servant-leader is servant first’ philosophy – whether when they are managed and controlled into the ground. that be in an individual or organisational capacity – is, Remember, your people have been hired for their skills set. You ultimately, a virtuous cycle. Because when your people become have to create space for them to use those skills, and encourage happier, healthier, wiser, freer, and more autonomous, they are them to take calculated risks. As long as they’re trying to improve more likely to themselves become servant-leaders. All of which the business, you should allow them to try new things, or new bodes well not only for businesses, but also communities and ways of doing things. society at large. the outset of my turnaround strategy, the first thing I did was try and set a new tone. I drew a great deal of inspiration from my mentor, Brand Pretorius, who is a well-known proponent of servant leadership.

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PERspective

Best Practice Total Rewards?

Communication is king

My goal for today was to sit down and write an article about the next big thing in the reward and recognition arena. I had planned to spend the morning researching global best practice to bolster my local knowledge of trends and the afternoon consolidating my findings and writing a profound article for the benefit of Human Capital professionals everywhere. I diligently read numerous articles penned by the top thinkers from leading organisations, made notes, sat comfortably, clicked my knuckles, hovered over my keyboard and . . . realised that the best advice that I have in creating a world class total reward structure in your organisation is to communicate effectively, honestly and ethically.

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PERspective

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e’ve all seen case studies on companies like Google and Patagonia and I have no doubt whatsoever that they are leaders in optimising a corporate culture that works in their unique environments. As cool as it would be to go surfing during working hours and crawl into a nap pod for an afternoon siesta after your cafeteria subsidised triple, venti, half-sweet, non-fat, caramel macchiato, that just plain doesn’t work for most organisations.

I am constantly being asked “what is the latest best practice in the reward space”. What is with our obsession with best practice anyway? Best fit is the be all and end all in my opinion. A total reward approach tailored to your organisation, taking your unique leadership-led culture into account. It always amazes me when presenting the results of an employee engagement (or similar) survey to an organisation. The immediate feedback is usually “but we do that”, “but we offer that”, “but that is available”. In most cases, perceived gaps in your employee value proposition can immediately be rectified through effective communication.

This is not to say that a substantial overhaul of your current practices is a bad idea. Change can be good, change can be healthy, but change will fail if not managed correctly through a well thought out change management and communication plan.

So assuming that you fully understand your total reward landscape and how you compare to market practice, what are the important elements in crafting a communication plan?

1) Decide who will form part of the communication team 2) Recognise what your employees care about and identify key audience groupings 3) Define the communication channels (determined by your organisational culture, geography and structure): - Face-to-Face - Paper-based - Technology-based, or a mix 4) Determine the timing and frequency of total reward communications 5) Create a detailed project plan 6) Monitor your progress A key thing to remember here is that, no matter what the latest buzz words and trends are, don’t go crazy with the jargon. Use simple language, be direct and be empathetic.

Reward can be an emotive topic and getting the balance right between delivering the facts in a transparent and clear manner and giving employees comfort that the available reward options are well thought out and have their best interests at heart can be tricky.

Remember that total reward describes a reward strategy that details all of the investments an organisation makes in its workforce. This could include remuneration,

benefits, learning and development, career opportunities, flexible working arrangements, free parking, access to a gym, a recognition programme, free coffee and yes, if it fits your culture, a high-tech space-age nap pod. The key here is to ensure that you take the ‘best practice’ out there and customise the elements that could work in your environment. The goal is not to give every employee what they want 100% of the time but to create an environment that, through organisationally aligned, customisable reward options, caters for individual needs and fits with your unique organisational culture.

It is important to remember that, although HR may be the custodians of total reward in your organisation, a critical success factor is to enlist the help of managers and position them as employee experience champions. They’re best placed to personalise reward for their employees, explain why they are on a particular total reward structure and what they can do to maximise their income and job satisfaction. Importantly, managers need a deep understanding on your reward and recognition philosophy and structures and understand the “why” behind it. Coupled with this, coaching on how to communicate the correct messages to their employees will give you the best chance of bedding down a total reward culture that attracts, motivates and retains the right people in your organisation.

A good approach is to prepare a manager toolkit which could include the following: a) Total reward policy documents b) Detailed remuneration information on their direct teams c) Insight into what’s important to employees d) Guidelines on how to handle queries such as: “I found this on the internet” 1. The pay scale philosophy doesn’t make sense when I look at my pay 2. My pay is not equitable compared to colleagues 3. How can I influence my pay to increase my earnings e) Tips on how to best facilitate reward conversations Finally, the goal of effectively communicating the total reward approach in your organisation is to sell the employees on their total reward options! ‘Sell’ might seem like the incorrect word but employees are your internal clients and, in my view, this is absolutely critical and mustn’t be avoided. If your organisation fails to clearly articulate and describe in detail the total value of employment, you run the risk of unnecessarily losing your most valuable talent.

“The single biggest problem in communication is the illusion that it has taken place”.

– George Bernard Shaw

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PERspective

The objective of

due diligence

By Lerato Thekiso, Founding Director: Thekvest Legal Advisory Services

is to entrench value How many business leaders have forgotten this?

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PERspective

The South African political and business space continues to be marred by state and corporate political wrangling. Revelations of corruption and ongoing investigations into scandalous misappropriation of assets continues to make headlines every week. Yet, those involved claim to have little to no knowledge of the other players. And, while certainly these investigations must be pursued to the fullest extent of the law [and hopefully, without interference], in the meantime the domestic economy continues to be assaulted – having contracted by 3.2% for the first three months of 2019 - and it faces further possible downgrading from international ratings agencies.

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hat’s perhaps more disheartening is that the actions of the few [that in turn affect the many] are happening despite the fact that we have advanced and well-established regulations, legislations and a responsible governance framework as safeguards. For instance, both the Companies Act and King IV lend themselves to subscribe to due diligence practices.

Due diligence can be described as an investigation of an entity or person. While the scope of the due diligence, and the mechanisms of investigation, may differ when undertaken on a person versus an entity, when applied correctly, due diligence refers to the care a reasonable person [or organisation] should take before entering into an agreement or a transaction with another party.

The idea is that due diligence will provide objective and reliable information on the other party [entity or person], which will better enable a reasonable person [organisation] to assess any potential risk exposure that may result from engaging with the other party – and thereby be able to make an informed decision.

Certainly, while a due diligence may not uncover, foresee or quantify every possible risk exposure, the more thorough the due diligence investigation is, the more specific the contractual protection can be. Also, while a full and detailed due diligence investigation and report back is always recommended, a high-level due diligence can achieve similar results. Even a high-level due diligence

can reveal any red herrings or highlight any warning signs of “deal-breaking” or “commercially negotiable” issues.

However, it’s also important to note that it is not just the person [organisation] at risk. In fact, King IV notes that the “onus is on individual directors [as reasonable people] to determine whether they have the requisite skills and capacity to make a meaningful contribution and are free from apparent of actual conflicts”. Additionally, considering the hugely increased exposure to personal liabilities that the Companies Act imposes on directors, it is just as important for individual directors to ensure suitable due diligence is conducted and that they themselves are kept informed on all key parties [person or entity] where an alliance is strategic to continued operations.

Why then, given our legislative climate and the clear framework of rules and guidelines to regulate responsible governance, does appropriate due diligence fall through the cracks?

Simply put, because there are those who are in a position of power and responsibility, but do not act accordingly and regrettably this gives way to other evils of; lack of transparency, bad governance, nepotism, laxed professional ethics and morality, greed, etc.

If we are to truly change the status quo and affect a collective ethos of responsible business and responsible governance, then we need to be prudent and apply professional scepticism on what we believe at face value.

And, each of us have a role to play in acting responsibly, in support of the change towards responsible governance in society, business and government that we want to see. As individuals, the onus is on us to ensure that – over and above a formal due diligence process – our behaviour is underpinned by ethics and integrity.

Without this as a second sounding board for a formal due diligence, society will continue to witness fraud, corruption and untoward business. Sadly, it is often the case that where the ‘paperwork’ upholds us, those with authority fail us.

As a nation, we need to get better at asking ourselves, our peers, our leaders – in all tiers of society - is it worth breaking the rules to save or make a quick ‘buck’. What we say, and what we do, must mean something. As business leaders, we must ensure that our decisions are underpinned by ethics and real care, as this is when the whole business – and our economy - will benefit.

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PERspective

Tackling the

Future Head-on

By Dr Gerhard van Rensburg

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PERspective

We have a love-hate relationship with change.

In some cases we welcome change with open arms, in others we resist or try to escape it.

We love it when the immediate benefits are obvious to us. We hate it when it is demanding of us – when we feel it threatens our comfort, security, or way of life. When we set our eyes on the future and we want to do so in a sincere and meaningful way, not merely as an academic exercise, we need to consider our emotional response to the accelerated change we experience in the 21st century - not only our views about it.

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rom the earliest days man had to deal with disruptions. The forces behind it were however simple and recognisable. They were mainly those of nature and hostile people competing for land and resources. Even with three industrial revolutions behind us, we could still be reasonably comfortable with our ability to reflect and learn from past experiences by identifying the causeand-effect relationships. However, it is our shared experience today that what used to be obvious is not obvious anymore – drafting three and five year strategic plans feels like a waste of time. It is all happening too fast, too unpredictable and complex. And yet, we cannot be self-defeating, throw our arms in the air and stop trying to apply our minds.

Mind-change A hard, unsympathetic message you hear in the 4th Industry world is ‘disrupt or be disrupted”’ The time to rely on heroes and saviours who will shield us from disruption has gone by.

As the world becomes flatter, more democratised and open to diverse ideas and influences, we are required to develop our independent and critical thinking. In other words, we need to embrace self-leadership. In leading ourselves more consciously we develop our mind from a socialised mind to a self-authoring mind to a self-transforming mind (Kegan 2009). From being completely tuned in to the voices of authority figures and the collective, we develop to find our own voice and direction and to write our own success stories. We then, hopefully, develop further to being willing to also listen to others for deeper understanding with more self-reflection which enables us to recognise the filters through which we formed our earlier perceptions. To tackle the future head-on is not ask for a few daredevils who are willing to take risks in order for the rest to follow in their footsteps. In the 21st century, it puts the magnifying glass on each one of us to be willing to develop ourselves for the challenge.

Our challenges with change Tackling the future head-on has to do with change – how we respond to it and how we are part of it. It is interesting that when you would ask an audience “do you want change?” most hands will go up. With no specifics, we assume the change will address our needs or wants – new experiences, a bit of adventure, a better, more comfortable world to live in, etc. When we are asked “do you want to change”, few if any hands go up. We assume that changing ourselves might dislodge us from our stable sense of self and we don’t want to risk that. And yet, we all want to feel we have value. We all want to feel relevant. So the obvious question is, if indeed we want the change we hope to see, who will take the lead? The pope, the president, the governing party, the CEO, or just the non-specific ‘they’?

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Emotional and spiritual change We are not only rational beings, but also emotional and spiritual. Tackling the future head-on and going through change can also mess with our emotions, values and beliefs.

In a 21st century world we have already experienced the accessibility of information and knowledge. We have experienced interconnectivity and diversity of worldviews, cultures, belief and value systems as well as customs. We probably have become less judgmental and less defensive.

However, to effectively navigate the stormy waters will require from us to collaborate and trust people - which is to not only open our minds but also our hearts. It will be difficult to effectively collaborate if we remain distrusting and cynical, saying one thing but thinking and believing another when we engage. Certainly, we carry the risk of being disappointed when we open our hearts to others. But in leadership we expect to see both sides of trust: being trustworthy and being trusting. In leadership you don’t wait for others to reach out, you reach out first. For some of us it probably means that we have to let go of whatever keeps us in the grip of cynicism and fear.

Our relationship with technology New technology brings change and many of us probably also have a love-hate relationship with technology. It is easy to hate it when we perceive it as something inhuman, something that ruins the beauty and purity of nature or something that makes us too dependent on it – we quickly stress when it fails us. We love it when it is a novelty, interesting and does something for us, like making life easier or our work efforts more productive. In this love-hate relationship we are not always sure if we should keep technology at a distance or open the door to it even wider.

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Should technology scare us? Yes and No. If, for instance, it means that it interferes negatively in our relationships, then yes, it should scare us. If it means that it facilitates connectivity and conquers poverty, aids and cancer, then no, we should praise it. The book by Nicholas Carr, The Shallows: What the Internet Is Doing to Our Brains, articulates what many of us feel uncomfortable with – how we can be enslaved and intimidated by technology at the expense of what we value as being good for relationships, proper attention and concentration, focus and healthy living in general.

However, instead of asking whether technology should scare us or not, we should appreciate who is responsible for it in the first place. And it is obviously ourselves. Even though the technology we produce, such as Industry 4.0 technology, could become a threat to us in a number of ways, we should remind ourselves that we remain responsible for what we have created. In that sense technologies are extensions of who we are and what we do with our abilities. They are amplifications of our power, but not separate living monsters to fear or fight. Where technology presents the how of change, humans presents the why. Why and for what purpose will ultimately determine our well-being and what we gain from the technology of the day.

The 4th Industrial Revolution and our responses In a nutshell, the 4th Industrial Revolution refers to dramatic social and economic changes as a result of an array of technological breakthrough inventions impacting on all industries. It includes technologies such as the Internet of Things, Robotics, Artificial Intelligence, Augmented Reality and Big Data.

It can be described as the revolution of digitisation and cyberphysical systems (a mechanism that is controlled or monitored by computer-based algorithms). This follows the technology of steam power and mechanisation of the first revolution, electricity and mass production of the second and the internet and automation of the third.

In his book, Shaping the Fourth Industrial Revolution, Klaus Schwab makes the important point that the Fourth Industrial Revolution is much more than just a description of technologicallydriven change. “We should not resign ourselves to the inevitability of default options … Debate values at all stages of innovation …

PERspective

The benefits include spreading prosperity more widely, reducing inequality and reversing the loss of trust that is dividing societies and polarising politics.” Ultimately, the changes need to be human-centred.

Indeed, “tackling the future head-on” should not be interpreted simplistically. If it is interpreted as an encouragement to seize opportunities for own success, to get ahead and win the competition, then it is still old paradigm thinking. The 4th Industry challenges and opportunities are of a global nature and can only be treated as such. As much as there are opportunities to make great advances in all industries, the world is also facing global threats of instability. Think about climate change, nuclear wars and social unrest due to high levels of inequality. The fact that the richest 1 percent owns half the world’s wealth is unsustainable and a high risk. No nation can solve global existential threats on its own. No matter from where you are and what work you do, collaboration will be key in responding to 21st century challenges.

The 4th Industrial Revolution will disrupt and impact all areas of our lives. In the new world of work it is expected that many jobs of a mechanical, repetitive nature will be done by robots. It is estimated that close to 60% of current jobs have at least 30% of tasks that can be performed by computers today. Furthermore, an expected 35% of skills will change across industries as new technologies, business models and markets develop. Instead of panicking about potential job losses, our response should be to focus on the human only capabilities that will be required in the new world of work - abilities such as creative and innovative thinking and problem solving.

Reskilling, “rewiring” our brains and generally re-inventing ourselves at the young age of fifty will become increasingly important to stay relevant. In addition, it will be more beneficial to think in dynamic terms about the different roles we can play at work to contribute to work organisations or society, than to think of jobs in static or fixed terms. The idea of ‘best practices’ will give way to more divergent thinking, experimentation and creative solutions.

Leadership in a VUCA world The acronym VUCA refers to what we have come to known as features of our 21st Century world namely, Volatile, Uncertain, Complex and Ambiguous. When we reflect on and discuss leadership, these descriptors of the context within which we need to lead, need to be central in our thinking. Similarly, discussing our readiness for the Industry 4.0 change, forces or challenges, leadership has to be at the core of our thinking.

Leadership incorporates leading self, others and change.

Effective leadership requires balancing and developing all three leadership areas. In developing our leadership we hope to remain relevant and influential for our times which leads us to revisit our thinking paradigms, or the lenses through which we view the world. If we recognise the patterns of our thinking as they were influenced by historical and socio-economic factors, art and the march of science, we can match them with appropriate effective

patterns of thinking for the modern world and it will highlight the shifts we need to make. One such a shift is from convergent thinking to divergent thinking.

We use convergent thinking to analyse problems and break them down to their parts for closer inspection and conclusive judgment and decisions. It is linear and systematic. What convergent thinking doesn’t help us with is to come up with creative ideas, explore possibilities and allow ourselves the freedom to experiment. For that we need to develop divergent thinking.

Improving our divergent thinking is what would help us facing Industry 4.0. It helps us to see the connections between things, to be flexible, not obsessed with what is best, but take creative risks. In an Industry 4.0 environment we are challenged to replace the need for the perfection of knowing with the willingness to seize the unknown. Thinking about our education systems, the shift needed is to have universities as the birthplaces of ideas, not degrees to show how much I know … we can always quote google instead.

To lead effectively in a VUCA world you will find it helpful to be more curious than convinced, more responsive than standardised and more passionate than diligent. In a global study done by IBM, creativity, integrity and global thinking were identified as the top 3 leadership qualities for the new world of work. Schwab emphasises systems leadership and explains that it is about a shared vision of change and actions that include all stakeholders of the global society. Ultimately it needs to shift the structures of our social and economic systems in order to deliver sustainable benefits to all citizens, including for future generations. The scale, complexity and urgency of the challenges facing the world today call for leadership and action that are both responsive and responsible.

Conclusion An old African proverb states, “If you want to go fast, go alone.

If you want to go far, go together.” Industry 4.0 brings a sense of urgency. And it is justified if we apply the principle of global thinking for relevancy. However, our sense of urgency should help us focus on how to connect, collaborate and co-innovate, not on frantic actions to save my own skin. It will be counterproductive and short-sighted to make use of technologies just because we can. We might go fast for a while but it will not sustain us. We therefore need to follow the advice to integrate our ethics and values in our decision making and do it together. Do not only ask if something is feasible, ask for what purpose.

From the above it is clear that your commitment to the following will serve you well in tackling the future head-on: • Be resilient (adaptive and positive) • Be collaborative • Be ethical • Be creative • Be flexible • Be agile

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IN the KNOW

Assessing legal risks in the move to Cloud

By Wendy Tembedza, Senior Associate at Webber Wentzel

With the fourth industrial revolution in full swing, businesses are looking for faster and more efficient ways to service customers. Customers are also increasingly tech-savvy and demand more from their service providers, including quicker access and more tailored offerings.

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IN the KNOW

To

meet this demand, many businesses are moving to cloud computing to reap the many benefits that cloud can provide. These include scalability, agility and an ability to analyse data and interpret it in such a way that can help meet client demands.

However, before moving any business functions to the cloud, a business must carefully assess legal issues that will have an impact on the ability not only to move to cloud, but also to have full beneficial use of cloud services. These issues relate primarily to: (i) the regulatory environment in which the business operates, which may impact a move to cloud; (ii) internal data hygiene related to compliance with data protection legislation; and (iii) ensuring that the business implements best practice in its corporate governance regarding risk mitigation.

Regulatory environment The cloud customer will remain responsible for its own compliance requirements. As such, businesses should ensure that they understand the regulatory environment in which they operate. Certain sectors are required to comply with specific rules regarding how data is managed. For example, in the banking sector, the Prudential Authority issued a Directive D3/2018 and related Guidance Note G5/2018 (Banking Cloud Rules) on cloud computing and the offshoring of data for banks on 5 September 2018. In general, the Prudential Authority acknowledges that cloud computing is becoming an integral aspect of banking business operations and is permissive of the use of cloud computing. The Banking Cloud Rules also set out comprehensive guidelines which banks must follow in order to comply with the regulator’s requirements on the use of cloud computing and/ or offshoring of data. Any bank considering a move to cloud must first ensure that it is compliant, and is continually taking the necessary steps to comply, with the Banking Cloud Rules.

We anticipate that with the ever-increasing adoption of cloud, this approach may filter through to other sectors that will soon be subject to similar regulatory requirements. It is incumbent on the business to ensure that any move to cloud is compliant with the applicable regulatory regime.

To assist businesses to understand their regulatory requirements, some cloud service providers (CSP) have produced useful materials assisting businesses’ to understand the cloud offering in the context of the regulatory requirements applicable to specific sectors. Businesses should make use of such resources to understand their regulatory obligations before appointing a CSP. Internal business data hygiene In order to facilitate a move to cloud, a business should first conduct a data hygiene exercise to determine: what data it has (for example sensitive personal information); where the data is stored; and who has access to the data.

This exercise will help a business better understand the level of risk attached to moving any category of data to the cloud. Importantly, this exercise will help determine whether it is even appropriate to move all or part of the data to the cloud.

An internal data hygiene exercise will also assist a business to comply with data protection legislation. In this regard, the Protection of Personal Information Act, 2013 (POPIA) will, once fully operational require entities that handle personal information to implement various controls regarding such personal information. This exercise will therefore assist a business to determine whether it complies with POPIA requirements and what further steps may need to be taken to comply.

This exercise will also help a business determine whether it has in place data processing documentation to meet its data management requirements. This may include a cloud computing policy, privacy policy, acceptable use policy and personal device usage policy. Importantly, any move to the cloud should be aligned with a business’ data governance framework.

Understanding cloud service options Some businesses may tend to think that implementing a cloud solution is a plug-and-play exercise which absolves the business from any responsibility for how cloud services are managed. Cloud services will not, in general, be tailored to the needs of a particular business. As such, a business will need to research various cloud offerings to ensure that the CSP’s offering meets the particular needs of a business in terms of, for example, cross-border transfer restrictions and requisite security controls.

Businesses should also understand the importance of mitigating its risk outside of the CSP relationship. The prudent approach is to identify risk and put in place internal measures to mitigate this risk. Guidance on what is required of businesses from a risk mitigation perspective can be found in the King IV Report on corporate governance. The Report provides that a business’ governing body should govern technology and information in a way that supports the organisations strategic objectives.

Importantly, when negotiating the CSP contract, a business should use the opportunity to ask questions about the nature and extent of the cloud service in order to determine whether the offering is suited to the business’ needs. Important questions include the CSP’s contingency plan, data storage (locally or abroad), service levels, access to data and audit rights.

Established CSPs understand the importance of open communication in building trust in the cloud and are open to having discussions with businesses about various product offerings. Businesses should take advantage of this opportunity to satisfy them that a cloud service offering meets their requirements.

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Why cybercriminals are eyeing

smart buildings In countries like the United States, the growth of smart buildings is estimated to reach 16.6% by 2020 compared to 2014, although this expansion is not limited to the US but rather is taking place on a global scale. This growth is largely due to the fact we live in a world increasingly permeated by technology, in which process automation and the search for energy efficiency contribute not only to sustainability, but also to cost reduction – a goal pursued in all industries, public and private alike. Naturally, the construction industry is no exception, says Carey van Vlaanderen, CEO at ESET South Africa.

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mart buildings use technology to control a wide range of variables within their respective environments with the aim of providing more comfort and contributing to the health and productivity of the people inside them. To do so, they use so-called Building Automation Systems (BAS). With the arrival of the Internet of Things (IoT), smart buildings have redefined themselves. With the information they obtain from smart sensors, their technological equipment is used to analyse, predict, diagnose and maintain the various environments within them, as well as to automate processes and monitor numerous operational variables in real time. Ambient temperature, lighting, security cameras, elevators, parking and water management are just some of the automatable services currently supported by the technology.

To put the possibilities of this smart infrastructure into perspective, is the example of a smart building in Las Vegas where, two years ago, they decided to install a sophisticated automation system to control the use of the air conditioning (keeping in mind Las Vegas has a hot desert climate and very little rain), so it is turned on only when there are people present. This decision led to a saving of US$2 million during the first year after the smart system was installed, due to the reduction in energy consumption achieved by automating the process. Marriott Hotels implemented a similar system across the entire chain that is expected to generate an estimated US$9.9 million in energy savings.

Another example of automation through smart devices is that of a supermarket in the United Kingdom. The store installed a smart system in its parking lot that generates a kinetic energy from the

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movement of cars passing through it, and then uses that energy to power the checkouts.

At first glance, we may not see any security risk in these smart buildings. It is likely, however, that at some point the entire smart network is connected to a single database, and that is where the risk is. Particularly if we consider that many IoT devices are manufactured by different suppliers, who may not have paid due attention to security considerations during their design and manufacturing process.

Possibility of a smart building being attacked The risk of a security incident taking place in an intelligent building is linked to the motivations of cybercriminals, who mainly seek to achieve economic gain through their actions, as well as to impact and spread fear.

There are already some tools such as Shodan that allow anybody to discover vulnerable and/or unsecured IoT devices connected publicly to the internet. If you run a search using the tool, you can find thousands of building automation systems in its lists, complete with information that could be used by an attacker to compromise a device. In February 2019, around 35,000 building automation systems worldwide appeared in Shodan within public reach via the internet.

This means that someone could take control of a BAS after finding it through a search. If, for example, a criminal used Shodan for building automation systems to attack, they will find IP addresses. If they copy those IP addresses into the address bar

of a web browser, in many cases this will bring up an interface for gaining access, where they need to enter a username and password. If the password is a default password of if it can be cracked easily through a brute force attack, the attacker will gain access to the system monitoring panel, which contains information similar to the companies located in the smart building.

Once the attackers have access to this public information and can monitor, for example, how the air conditioning works, they could make a phone call pretending to be from the maintenance company and say they are going to send a technician. At the same time, the attackers could request remote access, which would give them access to the server and allow them to control the building.

Once they have control, they could alter the building’s heating or air conditioning or adjust the way any of the other automated systems operate and then demand payment of a ransom in using a system that allow them to remain anonymous, such as cryptocurrency, in exchange for not shutting the building down.

Siegeware: a very real threat Cybercriminals are already carrying out such attacks when they have the opportunity. This kind of attack is siegeware, or “the code-enabled ability to make a credible extortion demand based on digitally impaired building functionality” In conclusion, the low cost of IoT devices for buildings and the advances of technology for building automation systems is leading to changes with an impact on security. This drive toward automation and the use of smart devices to gather data – in order

to give a building’s users more comfort and to make more efficient use of resources such as energy – is also leading to increased security risks. As a result, the possibility of a cybercriminal launching a ransomware attack on a smart building is already a reality.

Considerations to keep in mind There are a number of security considerations and requirements to keep in mind: • Review the devices’ security specifications and work on the basis of the ‘security by design’ concept • Set a suitable budget for security • Choose partners that have knowledge of security issues • Install software for managing vulnerabilities • Ensure cooperation between the different areas and/or departments For operational issues: • Update the devices regularly • Implement a replacement plan for when devices’ support life cycles end • Exercise a precaution in respect of connected devices • Monitor connected devices CeO 2019 Vol 19.2

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Why wellness needs to be a business transformation priority

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When the acronym VUCA (volatile, uncertain, complex and ambiguous) was coined by the U.S. Army in the 1990’s to describe how crazy the post-Cold War years were, those early proponents had no idea that this would continue to be true for years to come. VUCA continues to be applied in our 21st Century world to describe the effect of frequent change in organisations and the global economic climate that can be a cause of disruption, hyper-competiveness, turbulence, high velocity and radical flux.

“W

e know that strategic workplace change can be effectively achieved when it is done with clear intention and planning,” says Stephen Rothgiesser, MD of The Change Consulting Group. But too much change or change that is impulsive or insufficiently planned for can push employees over the edge in terms of their ability to cope with daily responsibilities. To add to this, there is an upward trend in the level of stress and uncertainty about future job security, often due to the introduction of new technology and the perceived threat of workplace automation and robotics. This can have a knock-on impact on workplace productivity, as well as the mental and physical wellbeing of employees.

Rothgiesser adds that “most organisations don’t have clear systems in place to achieve successful change implementation; added to this, the pace and on-going nature of organisational transformation requires an agility and resilience that many organisations simply haven’t yet developed.”

The consequence is that stress, anxiety and depression are shooting off the charts. According to the 2018 Benefits and Trends Survey conducted by Aon Employee Benefits in the UK, the number of employers reporting employee stress and mental-health related illnesses rose from 55% in 2017 to 68% in 2018. On top of this there is a worldwide stigma about reporting mental health issues in the workplace. So, it is likely that the true extent of mental health issues in the workplace is under-reported.

In May 2019, the World Health Organisation (WHO) included burn-out for the first time on its International Classification of Diseases (ICD-11) list, which is the global benchmark for health diagnosis. Burnout has been classified by the WHO as “a syndrome conceptualised as resulting from chronic workplace stress that has not been successfully managed.” In other words the concept of burnout is only applied in the context of work because of the prevalence of this phenomenon worldwide.

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The WHO officially identifies three dimensions of burn-out: 1. feelings of energy depletion or exhaustion 2. increased mental distance from one’s job, or feelings of negativism or cynicism related to one’s job 3. reduced professional efficacy Alongside the human cost of mental illness, there is also a considerable economic burden. For example, in 2017, the Financial Mail reported that mental health problems cost the South African economy billions each year. Dr Ali Hamdulay, CEO of the Metropolitan Health Group explains that “mental illness in the workplace leads to decreased productivity, increased sick-related absenteeism, poor work quality, wasted materials and even compromised workplace safety”.

Looked at another way, studies have linked increased employee wellbeing with a positive impact on job performance, healthy competitiveness and profitability.

To realise these mutual benefits there needs to be an organisational paradigm shift from employers trying to ‘squeeze every last drop’ out of their employees to instilling a culture that values work-life balance and a sense of personal wellbeing. It also means that proactive stress management and wellbeing strategies need to be built into organisational transformation planning and implementation.

Somatic psychologist and author of The Mindful Body, Noa Belling is a Principal Consultant with The Change Consulting Group specialising in corporate wellness in the context of organisational change. Alongside important factors like easy access to healthy food and allowing spaces and activities that promote relationship building and harmonious teamwork, Noa has the following tips to offer for individual on-the-spot stress relief that can be easily incorporated into the workday.

Over time these kinds of mindful interventions can make a significant difference to our ability to think clearly, be productive even in the face of challenges, promote emotional resilience and feed into a sense of wellbeing.

Take any opportunity for physical activity during the workday, especially when sitting at a desk for long hours.

Examples are taking the stairs instead of the lift, breaking for a brisk walk to clear the head and allowing some meetings to occur while walking rather than always sitting at a desk. Physical activity is an excellent way to release stress hormones and can also stimulate creative thinking.

Pause at your desk now and again to carry out a quick body scan to release tension (such as by consciously relaxing, stretching out or breathing into areas that feel tense) before resuming work.

•

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For organisations, where high stress and burn-out are taking a noticeable toll, Rothgiesser advises taking a strategic approach where the systemic challenges are first properly diagnosed, and appropriate remedies are identified and planned so that a sustainable solution can be implemented.

For example, issues could sit with a few vocal individuals, or could affect the entire organisation. A staff engagement survey can be used that is targeted to address this question in order to glean valid data. Or focus groups could be run in various parts of the organisation, or the HR function and line managers can be used to identify concerns in this regard as they arise. As part of this it is important to ascertain what the true cause for the frustration or burnout is. Is it a personal issue pressing in on work? Is it a tiresome relationship dynamic in the team or with a leader? Or is it to do with organisational culture? Different kinds of triggers require different kinds of remedies.

“There’s no one-size-fits-all wellness programme,” says Rothgiesser. “Organisations are highly variable and the causes of anxiety and burn-out are multi-faceted and ever-changing given the life-cycle of an organisation and the challenges currently facing employees.” For this reason and in order to implement sustainable organisational solutions, wellness programmes should be based on an accurate understanding of the people and organisations involved.

•

Adjust your posture to be more centered and upright while taking a few deep breaths to encourage your feeling comfortable in this position and not tense. This simple act can trick your brain into believing that you, not your stress, are in charge. As a result feelings like anxiety and overwhelm can move more into the background as a clearer, more focused and determined headspace moves to the fore.

Take a one or two minute break at your desk to deepen and even out your breathing. This can help build a sense of emotional strength and resilience again as you trick your brain to believing that you are taking charge of how you are feeling. For example, inhale to a count of 3 or 4 and exhale to the same count, repeating a few times. This simple act has been found to energise your body and activate your prefrontal cortex, which is your brain’s home of intelligent thinking, good planning and clear-headed decision-making. One study in the banking sector linked 10 minutes a day of even, deep breathing (in this case carried out in one go once a day, but that you could break up through the day) with consistently better decision-making and reduced stress levels. In other words the simple act of breathing deliberately and evenly can be empowering.

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Online Shopping - How to Keep Customers Gone are the days of travelling vast distances to find a specific product and no more standing in long queues to pay. Online shopping has certainly changed the way we shop, but it doesn’t come without its own challenges. This is according to Bluegrass Digital managing director Nick Durrant.

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onsumers make split-second decisions about whether to stay on a website or leave. Finding out that shipping was too expensive or not finding exactly what they were looking for are the top two reasons they’ll abandon a brand’s site or mobile app without making a purchase.

This is according to a study from Episerver, the company transforming digital experiences.

Here are a few ‘must-haves’ and challenges that customers still have to face while shopping online.

Inaccurate Information Shoppers are more willing to visit new websites in search of the perfect gift. However, inaccurate or incomplete content dissuades shoppers from completing online purchases. Also, since there is no context in which to trust the company, any element of a web page that seems ‘off’ will send them packing.

Compelling content Most shoppers leave without buying because there wasn’t enough information about the product to determine it was right for them. Content needs to be prioritised by retailers, they need to deliver material that is relevant to who the shopper is, where they came from, why they are there and how they have behaved on-site before.

Device friendly Most online shoppers consider a website that works well on their mobile devices a must-have feature. Retailers desperately need to get their mobile strategy right, there is a huge need for a mobile friendly or responsively designed website.

Fast & Free Shipping Many commerce companies think fast and free shipping cuts too much into their profit margins. The fact is, however, that the number one reason for abandoned purchases is that shipping was too expensive. Consumers will dump their

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purchases if retailers don’t reduce shipping costs and speed up shipping.

Guides Many consumers consider guides a must-have website feature. When content meets commerce, shoppers feel as if they are being delivered an experience and don’t need to turn to social networks like Pinterest to know which paint colours complement the other, which shoes would look best with the shirt they are viewing or how an apparel item might fit their body type. Brands that develop guides (whether it’s for sizing or for suggestions on how to pair products] are offering an experience consumers won’t soon forget.

‘Shop the Look’ guides, for example, offer editorial-like experiences with ecommerce functionality. With evidence suggesting that holiday shoppers buy as much for themselves as they do others, retailers can quickly develop guides that both complement gift giving and self-giving. The guides can be in the form of product pairings on a product page, a navigation option on a website that leads to product search results and/or an email campaign with selected items.

Images Regardless of device, consumers count images (products in use and products not in use) as the most important type of content when purchasing a product on a brand’s website or mobile app. Providing multiple image types (lifestyle, still) and views is a sure-fire way to increase conversions and reduce returns since expectations are met.

Knowledgeable Agents Whether it is a bot or a person, consumers want quick and accurate answers to their inquiries. Often this means enabling employees and systems with complete visibility into an organisation so a customer can get anything they need from the touchpoint they are asking it on.

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Location As the saying goes, location is everything. When it comes to using location for website experience, consumers have a few expectations and preferences such as shopping in their own language and seeing localised imagery and products. At the very least, retailers need to ensure store information is correct on their website.

Digitally mature companies should also use a shopper’s location to deliver relevant promotions and pages to them as they browse a site and make their intent known. On their next visit, the site should remember them and the local elements presented to them before.

is loading by displaying the website’s outline similar to how Facebook loads when there is a delay.

On-Site Search Second only to free shipping, most consumers indicate that easy-to-use product search function is the most important feature on an ecommerce website. Retailers that invest in site search are the ones that will have conversion success. If nothing else, they need to make sure that searches ending in ‘no results’ have suggested content instead whether it is complementary products or a gift guide, which can help extend the customer journey versus abruptly ending it.

Returns Info Brands shouldn’t take it personally but shoppers don’t trust retailers they’ve never done business with before. As they look for the perfect gift, they are also looking for reasons not to buy. Ambiguous or missing information will frustrate most shoppers who think returns information is a must have feature of an ecommerce website and for consumers who look at the returns info when visiting a site for the first time. Savvy retailers display trust indicators like ‘Free Returns’ in prominent places on their site.

Quick Site A fast website is a must-have feature for ecommerce sites. A site that requires visitors to wait while it loads doesn’t invoke a lot of trust for shoppers. Image optimisation and code minification are two ways to very quickly speed up a site while using skeleton screens is another. Skeleton screens show the user that the site

Personalisation Retailers that personalise customers’ online experiences win in the form of more first-time conversions as well as repeat purchases. True personalisation requires several scenarios to make it work successfully (i.e., an ecommerce platform that can pull in customer data and surface it through a CMS), but last-minute personal touches can be made such as displaying a “Welcome Back” banner to returning visitors and immediately surfacing the products they viewed last time.

Shipment Tracking Shipment tracking is a must-have element on ecommerce websites, consumers want to know where their shipment is at any point in time.

Website Security The media is full of stories about data breaches and other security incidents, so it is no wonder that website security is top of mind with consumers. Using software that automatically mitigates hacking attempts can give businesses the reassurance they need to conduct business safely. Shoppers also want to feel secure about a company’s data collection processes.

To provide more personal info, consumers demand greater transparency into how their information will be used to benefit them, how it will be stored and secured and who has access to the information.

Third-Party Payment Providers Integrations with third-party payment providers are crucial for generating conversions. Retailers need to splash these partnerships across relevant pages to ensure consumers know there will be no friction when getting to the payment step. With this high level of intent, retailers need to move out of shoppers’ way and let them check out with their preferred payment method.

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Latency issues

the public cloud experience

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IN the KNOW

South African businesses, like many worldwide, are increasingly eyeing the cloud; shifting applications, services and infrastructure to the cloud where they are more accessible and available. This enables better productivity and business continuity. However, according to Securicom companies are discovering that the public cloud presents some unique challenges.

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ecurity aside, speed and performance, are amongst the key issues that local companies face in their switch to the public cloud.

“South African businesses switching to the public cloud need to consider that their data could be located anywhere on the globe. AWS typically lets you select a data centre location, but these are all located in Europe, Asia or USA at present. This introduces latency issues in applications that may be latency-sensitive for customers in sub-Sahara Africa in general. What this means is that data transmission might be affected by spikes in use across the internet. If application performance is a deal breaker for you, then the private cloud certainly trumps the public cloud,” says Douw Gerber from Securicom.

He explains that the public cloud is based on shared physical hardware which is owned and operated by a third-party provider, and the infrastructure is shared across numerous customers. Amazon Web Services, Microsoft Azure, and Google Cloud are examples of public clouds. Data centres are situated all over the world, with none in South Africa at the moment.

South African businesses switching to the public cloud need to consider that their data could be located anywhere on the globe.

“On the other hand, a private cloud is infrastructure dedicated entirely to your business. It is hosted on-site or in a service provider’s data centre. Private clouds offer a lot of advantages over the public cloud, with one of the most important, from a speed and performance perspective, being that they are in closer proximity.

This obviously eliminates the latency issues that are experienced with the public cloud, while still benefitting from the joys of cloud computing,” Gerber says, adding that the next generation private cloud experience, in the form of Cloudistics, offers unprecedented speed and performance over the public cloud.

“In fact, we typically see between 2x and 5x increase in performance over both public cloud and other virtualised infrastructures when compared to Cloudistics.

For some highly transactional or data heavy applications we have seen specific operations attain 8x performance over AWS,” he says.

Cloudistics, a cloud software appliance technology that brings the benefits of the public cloud into companies’ own data centres, Cloudistics is the first on-premise (private) cloud in the world to provide for virtualization, compute, network and storage; natively and imbedded, on one platform to deliver a premium private cloud experience.

A Cloudistics appliance can be installed within companies’ own H/Q data centre or a local co-location facility, meaning that users have high bandwidth, lowlatency access to critical resources.

“Cloudistics is designed, from the ground up, to deliver extreme performance for virtualised applications.

Today, it is the fastest platform available for virtualised x86 (Windows, Linux & Docker) based applications.

“This comes from a close and cluster-less integration of compute, storage and network resources that removes the bottlenecks that plague other infrastructures today as they scale to meet the growing demands of the applications they must support,” explains Gerber.

He concludes: “If speed and performance are important to you but you still want to enjoy the benefits of accessibility and scalability associated with the public cloud, bringing critical workloads or applications closer to remote workers by locating your private cloud within your own data centre using an appliance such as Cloudistics, greatly reduces the latency to such critical workloads or applications. This will improve the end-user experience as well as increase productivity to the levels you first imagined when you jumped to the cloud.”

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to put premium brands back into the aisle Retailers and brands have to take it on the chin when premium and sensitive consumer goods are dumped behind the tobacco kiosk due to the real risk of shrinkage.

But now there is a way to get the products back in front of shoppers.

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ne of the most bizarre placements found in retail stores, at least for customers, is the positioning of baby formula, shaving blades, face and neck creams, condoms, medication and battery brands at the cigarette kiosk. Apart from the re-queuing inconvenience, a shopper could be looking for a personal product such as condoms or a particular medication that they don’t want to discuss with staff. Whatever the reason, shoppers can’t exercise their desire to buy and might go elsewhere or even change brands.

Removing goods from shelves and placing them elsewhere also has other negative effects, explains Quattro Management Systems’ Sales Manager Ben Jansen van Rensburg: “The physical action of removing items from the aisle means that the general range gets depleted. The category in the aisle may consist of a hundred products, forming a distinct range that attracts shoppers. But the moment that you start decreasing the range, sales decline and brand values get depleted” There are other drawbacks to isolating stock.

It diminishes the ability for brands and retailers to hold promotions and brand ambassadors cannot offer a full shopping experience. In an attempt to prevent theft, stock is most often moved behind the cigarette counter. So, it’s a practical response to a begrudging reality - and grudge choices are never ideal for a business.

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SA’s retail technology breakthrough But a new solution has emerged in the South African market to address all the above and many other problems around premium products. Using their years of experience in retail technology and service kiosks, the minds behind Quattro Management Systems have developed NEO, a new kind of shopping experience. NEO is an interactive aisle display that restores premium categories to the aisle. But unlike self-service kiosks, NEO is not a standalone vending machine. It integrates the chain’s planogram aisle display with the store’s point of sale system.

If a customer wants to buy a certain item, such as a premium face cream, they can find the product on NEO’s in-aisle display, generate a token, pay for the product at any checkout and collect on the way out of the store. Instead of the customer hovering around the cigarette counter waiting for service, they can find what they want during their regular shopping journey. Since NEO is found in the aisle, the product is where the shopper expects it to be.

According to the Harvard Business Review, self-service kiosks create big jumps in the sale of premium brands, in part because customers aren’t as intimidated or concerned that staff will judge them. NEO creates an unencumbered shopping experience. Brands can advertise and promote their products, and retailers can keep valuable stock safe.

NEO also predicts when stock will run out and creates many levels of analytics that can be used for planning. It’s a solution honed specifically with retail in mind, at the hands of people highly experienced in the sector.

Jansen van Rensburg explains: “We wanted to get every department in a retail chain on-board and get buy-in from the different role players. This solution affects purchasing, loss prevention, marketing, category management, even e-commerce. Because of the unique nature of the retail industry, we understood there are many different departments that are part of this journey and need to be on-board.”

“We wanted to get every department in a retail chain on-board and get buy-in from the different role players. This solution affects purchasing, loss prevention, marketing, category management, even e-commerce.

Because of the unique nature of the retail industry, we understood there are many different departments that are part of this journey and need to be on-board.”

Triple digit growth NEO is already working its magic: at a Mamelodi brand franchise store outside Pretoria, where the isolation of premium brands among batteries, creams, sexual wellbeing products, shaving blades, pharmaceuticals and more had created massive sales and brand equity loss, NEO made the difference. The introduction of these kiosks returned doubleand triple-digit levels of growth among brands. And across more than 2 500 surveyed shoppers, 92% indicated that the system is easy to use.

Brands no longer have to hide from pilfering fingers. NEO brings the shopping experience back into the aisle and adds so much more into the mix. This is just the beginning of a retail revolution.

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Fires explosions cause largest losses for business

Cyber risks and the impact of new technologies will have an increasing influence on the corporate loss landscape in years to come. However, it is fire and explosion incidents that cause the largest claims for insurers and the businesses they cover, according to new research from Allianz Global Corporate & Specialty (AGCS).

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he vast majority of corporate insurance claims originate from technical or human factors despite natural catastrophes such as hurricanes, having caused devastating losses over the past two years.

In its latest Global Claims Review, AGCS reveals the top causes of claims in the corporate insurance segment based on an analysis of 470,000 claims from over 200 countries over the past five years (July 2013 to July 2018) with an approximate value of €58bn (R92.9bn).

The largest financial losses come from fires/ explosions, aviation incidents, faulty workmanship/ maintenance incidents and storms, which collectively account for over 50% of all claims by total value. Over 75% of financial losses globally arise from 10 major causes of loss.

“The report highlights the increasingly high values at risk for businesses and their insurers alike,” says Philipp Cremer, Global Head of Claims, AGCS. “In today’s interconnected and globalised business environment, financial losses are increasing due to geographical concentration of values - often in risk-exposed areas and from the knock-on effects of global supply chains and networks. Looking to the future, new technologies bring business benefits but also risks and claims.

However, they also provide an opportunity to prevent and mitigate losses and improve the claims settlement process for our customers.”

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Leading losses in South Africa Faulty workmanship/maintenance is the top cause of loss in South Africa. When large events do occur, such as that involving expensive production equipment in the oil and gas sector, which means it, can’t be used – significant financial losses can ensue.

Fire is the second major cause of loss, accounting for almost a quarter of the value of all claims (24%). Water damage generates the highest number of corporate insurance claims (32%), although one in five claims is also related to acts of crime or disorder.

“A decline in infrastructure investment, shortage of skills, and inadequate quality control as well as improper procurement process, may lead to increased faulty workmanship or poor maintenance, which is the main cause of large claims in the country.

This could result in common causes of loss such as fire or mechanical breakdown. While these claims may not be the largest in volume, the losses can be significant,” says Heleen Fergusson Head of Claims, AGCS Africa.

More expensive fires and aviation repairs Over the past five years fire and explosion incidents have caused in excess of €14bn (R223.7bn) worth of losses and are responsible for more than half (11) of the 20 largest non-natural catastrophe events analyzed. The average claim is almost €1.5bn (R24mn).

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“In general, property insurance claims are higher with inflation and greater concentration in value as a result of globalisation and more integrated supply chains,” explains Raymond Hogendoorn, Property and Engineering Claims Specialist at AGCS. “As manufacturers have become more efficient, the values per square meter have risen exponentially. Fire and flood claims are much more expensive per square meter than a decade ago.”

Costs associated with the impact of business interruption (BI) can significantly add to the final loss total from fires and explosions, as well as many of the other major causes of loss identified in the report. Almost all large property insurance claims now include a major BI element: The average BI property insurance claim now totals over €3mn (R48mn). This is around 39% higher than the corresponding average direct property loss €2.2mn (R35mn).

Despite recent record-breaking natural catastrophe loss activity in the US and around the world, storm is the only natural catastrophe event to appear in the top 10 causes of loss. Analysis shows corporate insurance claims typically originate from technical or human factors – or non-natural catastrophe events – accounting for 87% of all claims by value.

The global aviation industry recently experienced its safest year ever but claims activity shows no sign of abating. Aviation collision/crash incidents – on the ground and in the air – are the second major cause of losses. Increasing repair costs from composite materials and more sophisticated higher value engines on aircrafts are also a factor.

“We are not seeing a rise in the frequency of liability claims but the value of claims has been rising with higher awards and rising legal costs,” says Peter Oenning, Liability Claims Specialist at AGCS. “We are also seeing much larger claims in Latin America and Asia than in the past. Once, nine out of 10 large claims globally would have come from the US, now it is more like seven out of 10.”

Analysis also shows that insurers have paid on average €32mn (R512mn) a day over the past five years to cover losses – AGCS alone paid €4.8bn (R76.bn) to its insureds in 2017. Insurers are increasingly adopting innovative technologies to improve the claims handling process. Machine learning and robotics can speed up the claims process for low-value, high-frequency claims. To quickly assess wind or flood damage following natural catastrophes, AGCS utilises satellite imagery and drones, providing faster loss estimates that enable better allocation of resources and earlier claims payments.

The report provides loss breakdown statistics for 13 countries and analyses claims patterns across various industries such as aviation, shipping and energy as well as insurance lines of businesses such as property, engineering, liability and financial lines.

Liability trends and InsurTech improvements Defective products and faulty workmanship incidents, which account for 14% of all claims by value, are the top cause of liability losses for businesses.

Product liability claims are becoming larger and product recalls are increasing in size. Supply chains in industries like automotive manufacturing are now more complex. As companies restrict their number of worldwide suppliers, it increases product liability risks for these few suppliers exponentially.

It is estimated that around a third of large corporate liability claims involve litigation with third parties, compared with property insurance where less than 1% of claims do on average. The US in particular, has seen a trend towards higher settlements and awards in personal injury cases with some facing high punitive damages as recent verdicts around the chemical glyphosate and talc products demonstrate.

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Nearly everyone

has already been

hacked

As business embraces opportunities from cloud and mobile computing to connect with customers, they take on new risks. There is a steady increase in destructive, sophisticated cyberattacks and ransomware. This is according to security specialist and J2 Software, CEO, John McLoughlin.

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ithout knowing it, nearly everyone has already been hacked regardless whether it’s in a large company or small business or at home. Cybersecurity experts say everyone is at risk and somewhere along the line some kind of personal information, an email address or password will be stolen.

Hackers are working to gain secure data all the time, it doesn’t matter what industry. Cybersecurity is a money making business and will continue to grow. Everybody is a target and it also doesn’t matter the size of the business.

Business leaders need to educate their staff and create a culture where nobody is afraid to report suspicious activities.

They need to ensure their staff are as prepared as possible that they can protect themselves and their company.

Although the majority of large companies are seeing a steady increase in the sophistication of cyberattacks, small businesses are often more at risk because they don’t always invest in the resources they need to prevent attacks.

As the threat landscape evolves, many businesses are struggling to keep pace with the hackers. This is largely due to a lack of funds, ineffective tools and a shortage of expertise.

As a result, when a cyberattack occurs, businesses are left reacting rather than proactively fending off those threats.

Businesses need to assess the kind of attacks that are most probable to hit their networks. Although data theft could cause huge damage, there are other threats like ransomware that are more likely and would have a profound effect on any company.

To start, businesses need to plan ahead for possible attacks and have secure strategies for business continuity and incident response. They will need to identify a team with each staff member having a designated role in case of an attack.

Management needs to fully understand what impact a cyberattack can have on services and the people who rely on that data. They need to accept that it is going to happen and must focus their attention on how to recover, how to minimise the damage and how to get the system up and running as fast as possible. Remember, every single recovery method will already be anticipated by the hackers.

Businesses often create a strategy and think they are fully prepared for an attack, only to find out during an attack that the data was backed-up in the wrong format or contacts were outdated, or the insurance didn’t cover everything.

To prevent this from happening, businesses should test scenarios and anticipate possible iterations of attacks to improve resilience. With ransomware, for example, companies are reliant on backups to recover data. One would need to check whether the right data is being backed-up.

More importantly, the company needs to ensure it can totally recover all systems and not just the data.

Data recovery is normally easy when done correctly, but recovering an entire system will take some time. Even with a complete backup, one still needs to establish how to recover that data.

It is highly recommended that one never pays the ransom because even if one does, there is no guarantee that you will get your information back. Regardless, one will have to set up a new system and restore the files that were encrypted. Also remember, with ransomware, the first thing hackers aim to do is to delete backups if they are not segmented from the network.

There are third-party companies that can provide backup solutions through the cloud. Having the security of those backups as part of one’s strategy is imperative.

Businesses just need to ensure that they can restore or rebuild their system and be confident that they have what is required to do so.

Most businesses think it will never happen to them, but they are so wrong. Accept that it is going to happen, be prepared.

Hackers are working to gain secure data all the time, it doesn’t matter what industry.

Cybersecurity is a money making business and will continue to grow. Everybody is a target and it also doesn’t matter the size of the business.

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Focus

on Critical Factors Brings Success Len Brand, CEO of Tata Africa Holdings Limited

Recent improvements to dealer, parts and service networks – with a view to maximising vehicle uptime – have contributed to increased sales this year for Tata and Daewoo trucks, says Len Brand, CEO of Tata Africa Holdings Limited.

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ehicle uptime is a critical factor in ensuring profitability for any transport operator – and it’s that aspect that has helped to shape core strategies for truck brands Tata and Daewoo in South Africa.

“Uptime is the first metric I look at when reports come in from the field,” says Len Brand, CEO of Tata Africa Holdings Limited (TAHL), which also promotes locally vehicles produced by Korean brand Daewoo, which was bought by Tata in 2004.

“In any transport operation, sustaining uptime is vital to success – and it’s that aspect that has shaped our South African business philosophy. Everything we do is aimed at helping our customers to keep their trucks moving.”

Since Brand’s appointment as head of TAHL in August 2016, he and his team have devised and implemented a number of key strategies to ensure that not only are the right products on offer by the right people at the right places at the right time, but that the means of maintaining them properly and efficiently are in place, too.

“About 45% of Africa’s truck potential lies in South Africa,” Brand says. “It’s a vitally important market in which reliability, speed and efficiency are crucial to success. Machinery must be seen to work and to keep on working – that’s the essence of profitability.”

In the Tata and Daewoo brands, Brand believes that recently implemented changes to the dealer, parts and service networks – in conjunction with renewed focus on training initiatives – have contributed to increased sales this year, as well as helping to lift performance and delivery platforms as intended.

“We’ve introduced a modern and dynamic parts system which has helped to reduce substantially waiting time for orders – about 92% of items are now readily available for picking, and we’ve also simplified the selection process, helping to eliminate incorrect choices.

“Also, we’ve entered into joint ventures and agreements with independent service providers to increase the number of technicians in the field – people who have been trained in our own, dedicated, local technical academy who are now part of our family.

“With more than 90 touchpoints established across the length and breadth of Southern Africa, skilled technicians are able to respond quickly to customer requirements, attending to anything from an accident or roadside breakdown to routine service or maintenance tasks.”

Brand says that while being in a position to keep the wheels of customers’ trucks turning is important, making sure that the right products are purchased at the outset

is equally central. “It’s no good compelling a customer to buy a truck that doesn’t suit his or her business,” he says.

“Through our brands we offer a wide range from which exactly the right fit can be found, and which cater to a variety of price points.”

“Our dealers are part of the communities they serve.

They are known and respected – an important factor in establishing and maintaining customer relationships.

Also, they know their products well – and the solutions that each offer.”

According to Brand, Tata trucks are perceived to punch above their weight, while the Daewoo brand has a reputation for refinement. “The two brands are a good fit in a multi-franchise operation,” he says. “Tata represents the Muhammad Ali of trucks – it’s very, very hard to knock it down – while Daewoo is a millionkilometre product that blends a US-derived drivetrain with European cab architecture.”

As far as durability goes, he says one of the secrets of the Tata line-up’s success is the fact that trucks have been designed to carry far more weight than their payload suggests, as road conditions and customer demands in the brand’s origins dictating an ultrastrong chassis.

“That’s one of the reasons why only four percent of trucks sold in India originate in Europe,” he says. “The imports are perceived to be far less durable than the homegrown product. In India, Tata is champion.”

For South Africa, TAHL has established a factory at Rosslyn where knocked-down kits imported from the Indian parent are assembled. Brand says the facility plays a significant role in the brand’s local marketing operations since vehicles built there incorporate specific elements requested by South African customers following extensive field trials. The facility is one of a number of similar assembly plants the company operates on the continent.

Further, TAHL recently aligned with key SA banks for our own retail finance solutions, which helps to make our vehicles more competitive for our customers. “The hard work has been done,” Brand says. “We’ve been very busy over the past two years getting all facets of our operations up to speed, always with the main aim of maximising uptime.

“The changes we’ve implemented seem to be working, with sales volumes increasing this year and our footprint across South Africa extending. As I’ve said before, we are looking to become the country’s third biggest player in terms of truck sales – and I don’t see why we shouldn’t succeed.”

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South African commercial property off the municipal water grid In a groundbreaking move, Growthpoint Properties has successfully taken a sizeable South African commercial building completely off the municipal water grid.

Timothy Irvine, Growthpoint Properties’ regional asset manager for the Western Cape

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he District, in the heart of Woodstock in Cape Town, has become Growthpoint’s first “water net-positive” building. It is also the first of several commercial properties in Cape Town that Growthpoint intends to take off-grid.

The multi-tenant office and retail building has seven floors and five basement levels with 18,721sqm of lettable area that accommodates a charismatic community of 25 businesses. It is used by around 1,750 people daily who together consume around 45,000 litres of water per day.

Timothy Irvine, Growthpoint Properties’ regional asset manager for the Western Cape, says: “By taking The District and other commercial buildings off the water grid, and substituting municipal water with a safe and sustainable alternative source of drinking water, we are taking pressure off the city’s potable water reserves, adding to the resilience of the city’s water system, and contributing positively to the environment.”

At The District, a naturally occurring underground mountain spring flows to the building’s basement. For years this crystal-clear water has been pumped from the basement sump to prevent flooding. The water was pumped straight into the city’s storm-water system, where it flows into the sea less than a kilometre away.

Before the city’s water crisis, Growthpoint investigated the possibility of using this sump water as grey water for flushing the building’s toilets. However, its design, which has evolved over the years - first it was redeveloped from four buildings into two and then into one – prevented this.

However, Cape Town’s water woes spurred the team back to the drawing board and inspired them to think even bigger.

“It is incredibly frustrating to have a sustainable alternative water source that has to be flushed down the drain because it is not safe to drink. So, we challenged ourselves to find a way to use the sump to provide drinking water that is completely safe for human consumption for the entire building,” explains Irvine.

This was no simple task. Growthpoint had to identify and adapt an existing technology never before used for this type of water filtration. It also had to work with the City of Cape Town to get special legislation drafted and passed to allow it to produce water on a large scale. In addition, it had to get buy-in from the building’s tenants.

Fortunately, the process was made easier by the positive response from major stakeholders, including The City of Cape Town and tenants of The District, specifically major tenant Ogilvy Cape Town.

Vicki Buys, Managing Director of Ogilvy Cape Town adds, “Thank you to the Growthpoint team for their efforts in making this self-sufficiency happen. In spite of these measures and the rain, the city’s crisis remains real and will only be resolved if we all keep usage at a low level permanently.”

Now, Growthpoint provides all the water for this bustling building from the basement, where its filtration plant can be found in its own sterile glass-fronted room. This enables anyone to view the sump water being made into drinking water. The plant’s filtration plant installation has also been designed to create a greater understanding and awareness about water. It is even labelled so that viewers can follow the process and learn how it works.

Some 140,000 litres of water flow naturally through the sump each day, and the filtration plant has been designed to clean the entire flow.

The legislation that the City of Cape Town drafted to enable Growthpoint to produce water on a large scale came into effect in November 2017, when Growthpoint was given the go-ahead to become a Water Services Intermediary. It can, however, only supply water to those with which it has a contractual obligation – its tenants. It does this at exactly the same rate as the municipality.

With this legislation in place, other commercial property owners are also enabled to do the same.

“Net-zero water initiatives are an important part of Growthpoint’s journey as it strives to make all its new

developments net-zero by 2030,” points out Irvine. “This is an exciting leap forward on our journey, which is for the betterment of everyone.”

And, The District is the first of a number of buildings that Growthpoint intends to take off the municipal water grid. The next building it is aiming to take off-grid is 200 on Main. All the buildings identified are in Cape Town, as this is the only city with the legislation in place to enable it.

“Growthpoint would certainly consider doing the same with suitable buildings in other cities and is happy to work with them to achieve this,” says Irvine.

Growthpoint is already ensuring that all the new buildings it develops across South Africa have the potential to go off the water grid to future-proof its property assets.

A look into the filtration process Growthpoint developed for The District: The filtration process begins when water from the sump is placed in holding tanks. It then goes through a bag-filter which filters our bigger debris, such as leaves and stones, to protect the filters before passing through ultra-filtration canisters which filters it to 0.02 microns, or one-thousandth of the diameter of a human hair. This cleans the water, but to remove any viruses the water then passes into a charcoal filtration canister to absorb bacteria and any smells. After this, it flows to a holding tank where it is dosed with ozone, which clumps together anything that may still be left in the water before pushing it through reverse osmosis, which strips everything out of the water.

This process is effective to 0.0007 microns, and is the same process used to remove salt from seawater. After this thorough filtration process, the water is re-mineralised with calcium. Unlike municipal water, no chlorine is added.

Finally, water is then fed to the building’s water system, via holding tanks.

To ensure the water is safe to drink, the filtration plant is equipped with a system that measures conductivity.

While water itself doesn’t conduct electricity, the impurities in water do. The filtration system immediately shuts down if there is a change in the conductivity levels of the filtered water.

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By Carl Wepener

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The question that arises ever so often is, “If Porsche is synonymous with ‘sports cars’ why SUVs”? Well, Porsche is synonymous with building sports cars but as the worldwide movement is more and more to smaller and medium sized Sport Utility Vehicles, they have seen the niche to do the same for SUVs and have done so very successfully. The Porsche Cayenne, for instance, is the best seller by far in its sector. I do believe that the same trend will be seen with the Macan.

he new Macan underlines its outstanding position as the sports car in its segment with new powerful and efficient powertrains.

Not only is the Macan pretty but it has distinctive exterior features such as the new LED tail light panel ensuring that the Macan is ready for the future in the style of the Porsche design DNA. The Macan offers comprehensive connectivity and new digital functions thanks to its new Porsche Communication Management (PCM) system with a 10.9-inch touchscreen.

Porsche has extended its range of comfort and assistance systems in the Macan with new options such as Traffic Jam Assist, ioniser, heated windscreen and GT sports steering wheel.

With new premium colours and perfectly finished materials, the new Macan also incorporates a high quality standard and stands for value stability.

Lets talk a bit more about the Porsche Macan generally and also include the driving experience.

Porsche has comprehensively upgraded the Macan in terms of design, comfort, connectivity and driving dynamics.

In the process the design is modern and functional. The Macan therefore remains the number one sporty role model in its segment. This compact SUV features a three-dimensional LED light panel on the rear of the vehicle with LED technology and really gives it a dynamic look from the rear. LED technology is also standard for the headlights in future.

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The most eye-catching new features in the interior for me are the 10.9-inch touchscreen of the new PCM, the newly arranged and designed air vents and the optional GT sports steering wheel familiar from the 911. The interior is typical Porsche and gives the idea that you are in one of the sports cars instead of an SUV. The PCM provides access to new digital functions such as intelligent voice control and the standard online navigation.

The range of comfort equipment is extended byTraffic Jam Assist, an ioniser and a heated windscreen, among other things.

Two engines versions will be available at the market launch: The Macan comes to the starting line with an enhanced 2.0-litre turbocharged four-cylinder engine. This unit produces 180 kW (245 hp) and delivers a maximum torque of 370 Nm. The Macan S is powered by a new V6 engine with 3.0-litre displacement and twin-scroll turbocharger in central turbo layout. The engine has a power output of 260 kW (354 hp) and a torque of 480 Nm. The seven-speed dual-clutch transmission (PDK) and the PTM all-wheel drive are perfectly matched to the new engines. Both Macan models are equipped with a fuel particulate filter and meet the requirements of the emission standard Euro 6d-Temp.

The driving dynamics of the Macan remains its core feature and is easily tested and experienced by testing it on all kinds of surfaces, mountain passes and long stretches of open road driving. The revamped chassis increases driving pleasure and comfort by ensuring a more neutral response while at the same time offering unchanged stability. The

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its own trail new Macan again features mixed tyres, which is not typical for the vehicle segment.

Like with the Porsche sports cars, it is possible to optimally exploit the driving dynamics advantages of the intelligent PTM all-wheel drive. Newly developed tyres with improved performance characteristics also permit improved lateral dynamics.

With the new PCM, the Macan opens up all the possibilities of the digital Porsche world. The full-HD touchscreen has increased in size from 7.2 to 10.9 inches. As in the Panamera and Cayenne, the user interface can be adapted to suit personal requirements with predefined tiles.

With full connectivity as standard, the new system offers improved online navigation and Porsche Connect Plus. The connection to the navigation-related “Here Cloud” plays an important part here. This provides the driver with up-to-date online data at all times for fast route calculation.

Other services and functions include web radio with automatic switching between FM/DAB/online sources, the intelligent Voice Pilot voice control system and also remote functions such as security and emergency services. The Porsche Connect app and Porsche Car Connect app enable the driver to communicate with the Macan via their smartphone.

With the Offroad Precision app, Porsche gives Macan drivers the chance to document, analyse and improve offroad journeys. The “Trip” area functions in the same way as popular running apps for mobile phones. All relevant data is automatically stored when recording is activated: driver, vehicle, route, times, GPS data. Route and elevation profiles are automatically calculated from this, which can then be viewed on a map at a later stage. At the same time, the journey can be recorded as a video either using a smartphone or an externally controlled action cam.

The trips can be shared in social media using the “Sharing” function. In the “Personal progress” app mode, the individual driver performance is rewarded with a bonus system. In a tutorial, the app additionally provides new off-road drivers with detailed basic knowledge on how to drive a Macan offroad. The tutorial also contains an overview of off-road parks.

Here, drivers can acquire initial experience in off-road driving in a safe environment. The Offroad Precision app is available for iOS and Android.

An expanded range of options with enhanced assistance systems is available for new Macan. The optional GT sports steering wheel creates a link to the Porsche 911. A mode switch integrated into the steering wheel – including Sport Response button – is part of the optional Sport Chrono Package that can be fitted in the Macan. The new Traffic Jam Assist uses adaptive cruise control to allow more relaxed driving at speeds of up to 65 km/h. The new system keeps the Macan in lane by targeted steering interventions.

The Porsche Macan is a real pleasure to drive, its performance is great and it is a vehicle that wants to be driven and best of all its value after three years will not leave you gasping for smelling salts, as it retains its value to a much greater extent than its competitors.

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S10+

A Quick Perspective

By Valdovinos Pereira

I’ve been out of the mobile market for a while, based on my feeling that many smartphones do the same thing, or equivalent, at the same or very similar speeds, particularly at the high-end of the market, where it often seems there is little to separate mobile devices. The S10+ changed a lot of my viewpoints in this regard.

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irst off, the model we received for review was the 8GB/128GB version. I think that the RAM capacity is both a good and a bad thing, mostly because it seems overkill for any Android device. I didn’t find myself filling it fully, even with heavy usage, but for the people who can somehow push that much usage (maybe with heavy Samsung DeX), it can be useful. A 128GB chunk of storage is always handy for saving YouTube videos, installing tons of the surprisingly good games off the Google Playstore and for safekeeping the photos from the 16MP camera it sports.

Before I get into more detail on the device and the experience it offers, I’d like to comment on the accessories included with the unit. You get a slim plastic cover which helped me tremendously as I felt the phone was slippery to hold and some surprisingly good in-ear monitors with AKG branding.

This is a big value add over the other usual universal branded products one gets with some other high-end devices.

As for the actual device, its fast, everything was seriously quick to do on the S10+. Android 9 was a breeze and web browsing was good to the point that I was using it over my fairly powerful laptop, simply to enjoy the browsing experience. Gaming wise (for those who do care), Eternium, known for its bad optimisation, when maxed out in the graphics department, yielded a frame rate of 40. The S10+ also has a headphone jack, which is a useful throwback.

The biggest challenge I had was with the battery not lasting as long as I feel it should have considering its premium status. I run all my phones at about 65% brightness as I feel it is a good mix of performance and battery life. The S10+ has a 4100MAH battery, the closest comparison device I used was a year old premium chinese brand device - with power hungry components and heavy usage - at similar brightness settings. Yet, the S10+ failed a number of times at matching the same battery percentage at the end of the day.

It does have fast charge via USB C and that does work really well and boosts the battery very quickly.

So to conclude, the S10+ is a fast device, no arguments there, but in my two weeks with it I found the battery a bit lacking for the size, although Samsung is moving in the right direction when it comes to providing batteries in its devices that pack all day long punch. All in all, it’s a good choice in the high-end of the market, particularly if you’ve got a use for the big screen.

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THE TOYOTA RAV4

A TRUE RAVOLUTION

By Carl Wepener

If ever I was impressed with testing a vehicle it is the Toyota RAV4.

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he RAV4 has modern lines and looks like it is raring to go. It is easily identifiable with the rest of the Toyota range and as far as I am concerned one of the best vehicles from the Toyota stable.

What makes it so outstanding? Well it has a: • All-new 5th generation RAV4 built on TNGA platform • Expressive, angular exterior design • Improved AWD functionality with Torque Vectoring • New Dynamic Force engines • New three-grade line-up to choose from • Toyota Safety Sense added to RAV4 line-up • Good performance • Overall capability on tar and on gravel I can only agree that the RAV4 is much more bolder giving that athletic look and chiselled stance, it also has an ergonomic, high-quality cabin characterised by soft-touch surfaces, including the dashboard and door panels. Brushed-aluminium trim adds a premium feel and highlights the interior’s stylish design, while a low-set instrument panel with horizontal lines that flow into the

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door panel emphasise the cabin’s generous width and give the driver a clearer view of the road ahead.

The comfortable drive is due to the TNGA (Toyota New Global Architecture) platform.

The TNGA platform’s inherently lower centre of gravity and high body rigidity means the manufacturer didn’t have to compensate with an overly stiff suspension to give it decent dynamic abilities. Instead, the independent front and double wishbone rear suspension is pliant enough to soak up most bumps and ruts, while giving a very smooth and comfortable ride that is agile and responsive.

Although the new RAV4 is slightly shorter than its predecessor (by 5mm), yet it has a longer wheelbase (by 30mm) – and that means more interior space. It’s wider too (by 10mm), allowing for a larger, open centre console between the front seats – something more typical of larger SUVS – along with wider seats for rear passengers and increased opening-angle of the rear doors.

A number of manufacturers can go and learn from Toyota what well planned ergonomics should be to ensure useful and easily accessible storage for the driver and front passenger. The load space behind the rear seats is notably bigger thanks to a fully

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flat floor that’s 60mm longer than the previous generation’s. It now boasts a best-in-class capacity of 580 litres (a 79 litre improvement) that, when the 60:40 split rear seats are folded down, can accommodate a 29-inch mountain bike without any wheels having to be removed.

It’s no good of if a vehicle only looks capable and rugged, it should actually able to do what it looks like. The all-new RAV4 backs up its rugged, determined looks with much needed increased ground clearance and shorter front and rear overhangs, allowing it to take on tough terrain with ease.

Power delivery has always been very important, especially where a vehicle boasts off road capability. The RAV4 comes with a choice of two “Dynamic Force” naturally aspirated four-cylinder petrol engines – a 127kW 2.0-litre and 152kW 2.5-litre – along with improvements in the all-wheel drive (AWD) technology.

Toyota’s AWD Integrated Management systems – a unique feature in its class – further improves the RAV4’s AWD performance by automatically adjusting different the vehicle systems (steering assist, brake and throttle control, shift pattern and drive torque distribution) according to the drive mode selected. “Mud & Sand” and “Rock & Dirt” are the modes are available.

With regard to transmissions, the RAV4 comes with a choice of three: a 6-speed manual; a Continuously Variable Transmission (CVT); or an 8-speed automatic. The 2.0-litre engine is paired with either the rev-matching 6-speed Intelligent Manual Transmission (iMT) or Shiftmatic CVT option, and comes in 2WD or AWD guise.

The CVT as tested is remarkable smooth without the whining high revolutions of the engine being intrusive.

The 2.5-litre is exclusively combined with an 8-speed Sport Direct Shift transmission that offers smooth and crisp shifts and lock-up control when in Sport mode.

The VX model introduces Toyota Safety Sense for the first time on RAV4, which includes Adaptive Cruise Control (ACC), Lane Departure Alert (LDA) with Steering Control, Blind-Spot Monitor (BSM) and Pre-Crash System (PCS). With steering assist, as well as radar-controlled braking in conjunction with acceleration functions, these Adaptive Cruise Control and LDA systems essentially lend a level of autonomous driving to the VX models For the first time the RAV4 line-up will comprise a three-grade strategy – GX, GX-R and VX. The GX: 17-inch alloy wheels, roof rails, LED headlights, pushbutton start, a seven-inch display audio and multi-information display (MID), Cruise Control, Reverse Camera and rear Park Distance Control (PDC) are also included.

The GX-R grade: aimed at customers looking for a more rugged exterior appearance and increased off-road usage, the GX has a bigger upper front grille with broad horizontal slats, a larger more prominent skid plate, chunky black over-fenders, and 18-inch alloy wheels. In terms of spec, it adds power-adjustable leather seats with lumbar support, seat heaters, leather steering wheel and trim, smart entry, auto-dimming interior mirror, rain-sensing wipers, wireless charging and climate control.

The VX grade: adds 19-inch high-gloss alloy wheels, Auto High Beam (AHB), Blind Spot Monitor with Rear Cross Traffic Alert, memory seats, power-operated tailgate, Panoramic View Monitor plus front PDC. The instrument cluster gets a TFT multi-information display (MID), providing key driver information, including a large LCD speedometer.

KEY TAKE-OUTS RANGE & PRICING • RAV4 2.0 GX MT 2WD – R 416 400 • RAV4 2.0 GX CVT 2WD – R 427 600 • RAV4 2.0 GX-R CVT AWD – R508 100 • RAV4 2.0 VX CVT 2WD – R505 400 • RAV4 2.5 VX 8AT AWD – R577 900 All models carry a 6-services/90 000 km service plan with 12-month/15 000 km intervals. A 3-year/100 000 km Warranty is also included.

POWERTRAINS 2.0-litre Dynamic Force Power: 127 kW @ 6 600 rpm Torque: 203 Nm between 4 400 - 4 800 rpm Fuel consumption: between 6.5 - 6.8 l/100km C02 emissions: 147 g/km.

2.5-litre Dynamic Force Power: 152 kW @ 6 600 rpm Torque: 243 Nm between 4 000 - 5 000 rpm Fuel consumption: 7.3 l/100km C02 emissions: 166 g/km.

EXTERIOR COLOURS GX & VX: nine colour choices including the Urban Khaki, Cinnabar Red and Caribbean Blue hues.

GX-R: five complimentary colours Interior colours VX: choice of Black and Ivory leather interior GX: Black fabric interior trim GX-R: choice of Black and Orchid Brown Art-leather

As tested what stood out for me is the RAV4’s well appointed, quality interior, its desirability as a midsized SUV and the pleasure of driving the RAV. It is one of my favourites and I definitely will be surprised if the RAV4 does not do extremely well in the AutoTrader COTY 2020 awards.

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Expanding Horizons Fever-Tree’s range of premium mixers have recently entered the SA market. The company saw that the same trends that drove the Gin and Tonic revolution in the United Kingdom were beginning to emerge in South Africa.

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remium Gin has grown extraordinarily here in South Africa with the emergence of an abundance of craft and local gin brands, and we’re already seeing some great opportunities for co-promotional activity. Last year we partnered with a number of brands on collaborative experiences and we’ve already listed in key retailers such as Pick ‘n Pay, Spar, Shoprite Checkers and Woolworths. We’re very excited about the opportunity across the whole region”, says Fever-Tree CEO Tim Warrillow.

Fever-Tree drove margin back into the forgotten mixer category, enabling bars and restaurants to deliver great mixed drinks simply, quickly and consistently by just using a premium spirit, high-quality mixer and a garnish. And where consumers historically shied away from creating complicated cocktails, these great tasting, long mixed drinks can now

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be effortlessly recreated at home, so Fever-Tree has helped to make spirits more accessible to a new generation of drinkers. Warrillow continues, “We’re seeing that consumers are turning away from drinking spirits neat or on ice – this is no longer compatible with modern lifestyles or the focus on health and well-being. There’s a huge shift towards simple drinks with high-quality components.”

Fever-Tree entered the market with one simple premise: If three quarters of your drink is the mixer, use the best. “It was all about putting quality back into the mixer category, nowhere more so than the ingredients themselves, and this resulted in a very different approach to product development”, explains Warrillow, “We went back into the history books to find the most authentic and highest quality ingredients we could and then went out into the field to track them down.

We travelled the globe meeting and spending time with specialist producers and experts to create our products, from the Democratic Republic of Congo where we source our quinine to the Ivory Coast for fresh green ginger.”

Fever-Tree’s entry into SA meets an increasing demand for premium tonics in the market. Warrillow adds, “We’d seen the huge growth of premium gin in the UK and we believed that people would be prepared to pay for quality.

The trends that we identified at the outset are only accelerating. We’ve seen that quality has broad appeal.”

With a focus on providing the perfect pairing to spirits, Fever-Tree keeps up with changing trends as more premium spirits emerge. Warrillow concludes, “Fever-Tree was built on innovation and whilst G&T consumption is still in strong long-term global growth, what’s exciting is the spirits category is not just about gin and the mixer category is not just about tonic. We’re developing new mixers, new flavours, new ideas and in doing so, creating an array of flavours to pair with the myriad of premium spirits.”

The Fever-Tree selection of tonics available in South Africa includes Indian Tonic Water, Mediterranean Tonic Water, Refreshingly Light Tonic Water, Elderflower Tonic Water and Aromatic Tonic Water.

Fever-Tree has been voted Drinks International 2019 Top Selling and Top Trending tonic water (for the fifth year in a row), as voted by the world’s top bars and restaurants.

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Last Word

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Ryan Falkenberg,

co-CEO, CLEVVA

How AI can, and can’t, improve your customer experience

Let’s talk about chatbots The easiest way to illustrate how varied the AI experience can be is to look at chatbots. They’re the kind of front-facing AI that more companies are using and which an increasingly large body of customers are familiar with.

Trouble is, most companies are terrible at implementing chatbots.

Apart from a few forward-thinking exceptions, companies tend to put up a chatbot on their websites in the hope that that it will learn from each interaction it has with a customer and that its answers will become more nuanced over time. They also operate in the belief that customers will tell the chatbot when it’s wrong, helping to train it further (hands up if you’ve ever done this willingly).

That would be great, if the chatbot was actually equipped to do so.

But, for the most part, chatbots are simply going through the company’s existing knowledge bases and serving you with a document (or, in the worst cases, multiple documents) to try and help. It’s essentially a slightly smarter form of search.

Contextual, hyper-personalised, relevant As long as chatbots rely on a flawed architecture that depends on the existence of relevant documents containing the needed information, they won’t be able to provide that answer.

If you want to operate in the digital era and want to drive logic through data then you need to start it in data. That means looking beyond your existing documentation and CX architecture and integrating insight into customer behaviour across digital and offline channels.

This approach will, ultimately, allow you to offer customer support that is hyper-personalised, relevant, and compliant.

A chatbot built on this kind of framework understands what you’re asking and can answer specific questions according to what you actually need.

While that’s just one small part of CX, anyone who’s cursed a company for failing to provide useful information, will know how important it is.

Ask the leadership of any reasonably-sized company what technology they’re looking to implement and they’ll almost invariably mention artificial intelligence (AI). In theory, that’s great. AI has the potential to fundamentally change the way a business operates and create a great customer experience (CX).

The aim of AI That said, this approach shouldn’t be limited to chatbots. Consistency -- in style, tone, and content -- is one of the most important factors in successful CX. It’s therefore imperative that any organisation turning to AI to improve CX apply a data-first architecture across every customer-facing channel. nd, the longer the business uses an AI application, the better the So, whether I make a query using a chatbot, the experience should get. Given enough time, the system can collect search function on a website, or a call centre, I enough data on each individual customer to provide meaningful, should get the same, relevant, answer. hyper-personalised experiences.

But if this is going to happen, businesses Implemented badly, however, AI can be a total disaster. Rather than need to stop trying to bolt AI onto their feeling like the business they’re dealing with cares about them, they’re left existing architectures and take an approach with the impression that customer service has been handed over to a bunch of that allows it to reach its full potential. dimwitted machines.

A

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1914 and we currently cover 216 000 lives

going far beyond the basics of covering Prescribed

In 2016 Alexander Forbes rated Bankmed as

Minimum Benefits on all Plans.

one of the top seven closed medical schemes

The range of Plans allows members to choose

in the country

an option that fits their pockets and suits their

Bankmed received an AA+ Global Credit Rating

healthcare needs

in 2017, the highest rating in the industry and the

We help our members understand their health

only closed Scheme in South Africa to do so

as we know this is the first step to good health.

The Scheme has a solvency ratio of 40%, well exceeding the statutory requirement of 25%

0800 BANKMED (0800 226 5633)

enquiries@bankmed.co.za

This is why we offer Preventative Care and Wellness initiatives to our members

www.bankmed.co.za

Bankmed Medical Scheme. Registration number 1279.

Administered by Discovery Health (Pty) Ltd, registration number 1997/013480/07, an authorised financial services provider.

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