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curaรงao
edition 1 | october 2013
www.Curacaobusinessmagazine.com
Coverstory:
Chamber of Commerce How the Chamber of Commerce can help your business
Vidanova: 45th anniversary
Nieuwe Post:
New services
Energy management
Energy efficiency and maintenance
Foreword
Curaçao, better business Welcome to the first edition of Curaçao Business, a business magazine that is geared towards small and medium business owners. It’s our goal to keep you informed on what’s happening on the island that would be of interest to you and your business. Business is a regional magazine across Holland and other parts of Western Europe that has been informing entrepreneurs and those in the business world for 25 years. The Van Munster Media Group, which publishes special interest magazines in Holland, including Business in 5 different regions, is now bringing a business magazine to Curaçao. In coordination with the Curaçao Chamber of Commerce, the Curaçao Business Media Group, a part of the Van Munster Media Group, is pleased to present Curaçao Business, bringing interesting, trending, important topics about business on Curaçao to keep you in the know. There have been many changes happening on Curaçao, particularly in the past eight years or so, both in business and politically. We have seen substantial growth around the island, particularly in housing, shopping and hotels. Politically, as of 2010, Curaçao became a country in the Kingdom of the Netherlands and we’ve also experienced a massive shift in the government. These things affect the economy, how we live and our way of thinking in general. Also, times are changing around the world and, while those effects reach us slowly, they are nonetheless being felt here too. In this issue, we’ve received excellent insight from Steven Martina, former Minister of Economic Affairs, John Jacobs, Executive Director of the Curaçao Chamber of Commerce, Rafael Pichardo, Executive Director of Vidanova and others about the direction and future of Curaçao, where it stands now and their visions of where it can be in the future.
I think they will all agree that we need to experience a paradigm shift in our way of thinking in some facets of life, but overall, Curaçao has a bright future and, with some insight, vision and a lot of hard work, we will see Curaçao in its heyday once again. We hope you enjoy this first edition of Curaçao Business. We look forward to presenting you with more interesting topics, new columns and news items and to keep you up-to-date with what’s happening in the business world on Curaçao. Curaçao Business is available in print in English and online in English and Dutch at www.Curaçaobusinessmagazine.com. Heather de Paulo, editor.
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FOREWORD
Letter from the President The Curaçao Chamber of Commerce & Industry has a longstanding tradition of informing both our local and our international business relations on the performance of our economy, the opportunities it presents and the challenges it faces. For the past few decades, we have been doing this successfully through our bi-monthly publications, seconded by our website and now also our Facebook pages and other web 2.0 instruments. Recently the Chamber reached an agreement with Van Munster Media Group of Holland to publish Curaçao Business four times a year. Curaçao Business is a traditional magazine that will be available online and in print. Van Muster Media Group is an experienced publisher in business magazines and already publishes five such magazines for cities and municipalities in Holland. With this new publication the Chamber will expand its dissemination of information to local and international entrepreneurs. Recently a covenant was signed between the public and private sector agreeing on how to proceed with a positive economic development. The government presented an overview of the economic potential of Curaçao showing interesting investments in public infrastructure, which in turn presents challenging opportunities to the private sector. These developments represent opportunities to improve our business and investment climate, gearing up locally to play the facilitator’s role in attracting new foreign investments and focus on the expansion of our markets.
In the coming editions we will be keeping our business partners informed on the positive developments. We hope you enjoy the fi rst edition of Curaçao Business. Please let me know if you have any comments and suggestions. Willem “Billy” Jonckheer President
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Curaçao Business PUBLISHER Curaçao Business Media Group b.v. Postadres on Curaçao: Sta. Rosaweg 19 Willemstad, Curaçao Exploitation Van Munster Media BV P1: Postbus 6684, NL-6503 GD Nijmegen, The Netherlands P2: Kerkenbos 12-26c, NL-6546 BE Nijmegen, The Netherlands T: +31(0) 24 373 8505 F: +31(0) 24 373 0933 I: www.vanmunstermedia.nl Postadres on Curaçao: Publisher Michael van Munster T: +31(0) 24 373 8505 E: michael@vanmunstermedia.nl CHIEF EDITOR Heather De Paulo T: (599-9) 682-8627 E: heather@vanmunstermedia.nl SALES ENQUIRIES T: (599-9) 736-5011 F: (599-9) 736-6365 E: info@gojad.com SUBSCRIPTIONS Subscriptions: NAF 35 per year (4 issues) I: www.Curacaobusinessmagazine.com T: 0031 (0) 24 373 8505 E: abonnementenbeheer@vanmunstermedia.nl MARKETING AND SUBSCRIPTIONS Stephan Aalbers E: stephan@vanmunstermedia.nl ART PRODUCTION Joost Franken Jan-Willem Bouwman DISTRIBUTION Nieuwe Post, Curaçao The publisher and its staff cannot be held liable for the contents of this magazine and statements and/ or its advertisements do not necessarily reflect its editorial views. Although the greatest care was given to the accuracy of the information in this publication and checked where possible, the publisher and the editors explicitly contest any liability for any incorrectness or incompleteness of the information provided.
van munster m e d i a
g r o u p
5 Letter from the President 8 How can the Chamber of Commerce help your business? 11 News 12 The export of services 16 The Startup Stock Exchange has launched 18 Curaçao social security system 22 Vidanova pension fund 28 Enough is enough 30 The added value of an external venue 32 New services offered at Nieuwe Post 36 Checklist workstation 38 The ergonomic home office 41 News van munster 42 Noise in the office 44 Energy efficiency and maintenance 48 Big Data - the next big thing? m e d i a
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Chamber of Commerce helps your business
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The social security restructuring has brought some uncertainty and confusion
The revenues from the export of services exceeds those of goods
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We may even see complete antiquation of the mail system as we know it
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The opening of SSX is of great importance for investors and starters
44 Less maintenance = higher energy consumption.
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Vidanova has played an integral role in paving the way towards complete pension reform
business - chamber of commerce
How Can the Curaçao Chamber of Commerce Help Your Business? Whether you are already a business owner or are planning to open a new business, the Curaçao Chamber of Commerce has the resources you need. Steven Damiana, the manager of investment and trade promotion, outlines some of the many services the Chamber provides. text Heather de Paulo
In a nutshell, the Curaçao Chamber of Commerce promotes the general interests of the Curaçao business sector, both locally and abroad. This includes advising and lobbying with the government, providing services and information doing business in, from and through Curaçao and keeping a roster of local and offshore businesses on Curaçao. A total of 38,000 companies are registered with the Curaçao Chamber of Commerce, 21,000 local and 17,000 offshore.
What does this mean for you, the current or prospective business owner? If you are starting up your own business, or just thinking about it, the Chamber can give you a complete list of what you need to get going. The first thing you need to establish is the structure of your business. Will you register as a proprietorship or a limited company? A representative at the Chamber of Commerce can help you consider the advantages and disadvantages of each option and what it would mean for your business. The Chamber can also help you with the structure of a business plan and, if you would like to go further, can introduce you to an advisor who can help you with setting up marketing and feasibility plans and whatever else you may need. Once you have a description and business plan for your company, plus the amount of capital
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you want to invest, you can go to the Chamber to register. There is a registration fee, which depends on your initial investment. Your excerpt will be available to you the next day. Why does a business need to register with the Chamber of Commerce? There are a number of reasons, but basically, being a registered business helps you stay competitive and legal. It means you have a business plan, showing that you are organized and have a vision. You will be included on the roster of registered businesses, which means you have networking capabilities, opening the door for you to do business with other, potentially larger, companies. After registering with the Chamber, you also have to be registered with the tax office and other legal entities. This helps keep your business on the straight and narrow and avoids legal liabilities. If you are an existing company, the Chamber is the liaison between you, the business owner, and the entities that will help make your business successful. If you need any kind of advice, direction or guidance, the Chamber can assist you or direct you to someone who can. There are different services the Chamber offers to existing businesses to help them stay competitive in their respective markets. One such service is course offerings with a variety of topics,
such as how to start a business, time management, taxation, new legislations and more. The course subjects are based on the hottest topics of the moment. Lectures are free of charge; trainings and workshops usually have a small fee of around 40 to 80 guilders a course. The Chamber also has a library with books and materials of any topic that would be helpful to a business, whether locally or internationally. The books include a range of topics such as starting a business, quality of business and all legislations that have been published. There are also business magazines, annual reports of different companies, both locally and internationally, and appropriate contacts in the government and private sector, both locally and internationally. If you would like to know more about the laws that affect your sector of business, you can find that information in the Chamber library. You can make copies
It’s also a great resource for foreign and local companies looking for local business partners and distributors. The paper is only published in Papiamentu. You can access it online at www.empresachiki.com.
A total of 38,000 companies are registered with the Curaçao Chamber of Commerce.
of any documents you require. The library is your resource for anything you need to know about your business or business in general. Another useful tool provided by the Chamber is the monthly paper, Empresa Chiki. Empresa Chiki provides tips for small and medium businesses with a different topic every month.
The Curaçao Chamber of Commerce also helps non-profit organizations, or foundations. Foundations are different than a limited company in that they have to go through a notary to become established. However, just like any entrepreneurial business, a foundation can still seek help through the Chamber if they need advice, help making contacts and anything else they may require. On the international front, the Curaçao Chamber of Commerce works to help local businesses find international contacts or to bring international business here to Curaçao. International promotional services offered by
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business - chamber of commerce the Chamber include: participation in trade fairs abroad, outgoing and inbound trade missions, organizing trade fairs locally and providing assistance to foreign investors and entrepreneurs. The Chamber has networks and good working relationships with the embassies where the Dutch Kingdom is represented. The kingdom has over 150 consulates, embassies and representatives in different countries worldwide. If you would like to know which countries specifically, you can go to www.government. nl/issues/embassies-consulates-and-other-representations. At the beginning of each year, a plan is made to focus on the countries that would have the best mutual business opportunities with Curaçao. The Chamber then connects with the Chambers and contacts from those countries and presents information on what needs to be done to do business with or through Curaçao or to start a business on Curaçao. Once foreign interest in business with Curaçao is expressed, the trade mission enters the picture. The trade mission facilitates business matchmakings, using the Chamber’s extensive database of registered businesses, between local and international companies to build business opportunities or create new networks. The trade missions help foreign investors find what they need to do business with, on or through Curaçao through the Curaçao Chamber of Commerce, avoiding travel expenses and searching aimlessly for a good match. The Chamber can help by providing a list of local companies of the same interests or can go as far as helping investors set up meeting locations, hotels, appointments with potential business associates, translating services and more. The Chamber can also issue certificates and other documentation to facilitate transactions. Essentially, if a business has good economic impact on Curaçao, it will benefit everyone. The Chamber will help the process go smoothly.
Curaçao Chamber of Commerce & Industry Curaçao houses the “Trade Point Curaçao”.
the workshops or specific information about a certain company.
The Curaçao Chamber of Commerce is part of the World Trade Point Federation (WTPF). The WTPF, an international non-governmental organization established in 2000, grew out of an innovative program of the United Nations Conference on Trade and Development. Through a network of more than 100 trade information and facilitation centers, known as Trade Points, the WTPF assists small and medium enterprises in over 70 countries worldwide to trade internationally through the use of electronic commerce technologies. The
The Curaçao Chamber of Commerce is available to anyone who currently has or plans to establish a business or foundation, as well as businesses in the international market looking to do business with, on or through Curaçao. The Chamber is private, not funded by the government, so it can give advice freely, but law does regulate it. Most of the services you receive are free, like the library, public registry online and general recommendations for a certain service or product that will help your business, but some services have a fee, like
You can find out more about the Chamber at www.Curaçao-chamber.an or by following their social media pages, such as Facebook, which is www.facebook.com/Curaçaochamber or www.facebook.com/empresachiki for up-to-date information. The website offers services such as access to databases of companies and foundations on Curaçao, as well as information for those seeking to do business in and through Curaçao. You will also find registry forms and training schedules on the site. The website is in English.
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news
Confidence in Curaçao’s Economy has improved
Redevelopment of the Refinery Site a Serious Option In the recently leaked ECORYS report of March 2012, “A sustainable future for Curaçao – Strategic options for Isla and the Isla site,” it was concluded that an upgrade (modernization) of the Isla refinery is technically, commercially and financially viable. The general conclusion that can be drawn from this report is that the redevelopment of the Schottegat area is at least as economically profitable as the development of alternative areas on the island and will probably generate a higher welfare. The refinery, which is run by Venezuelan state oil company, PDVSA, produces 335,000 barrels of oil products per day. According to the inspection report, “A key recommendation is to start the search for potential investors and operators immediately, and at the same time, start getting into position to close the Memorandum of Understanding with PdVSA before the contract expires in 2019.”
In the opinion of Curaçao entrepreneurs, confidence in the economy has improved slightly. This is according to the most recent economic survey of the Central Bureau of Statistics (CBS), which is based on the first six months of 2013. According to the CBS, fewer entrepreneurs indicated that the economy had worsened than what was reported last year, with a decrease from 56 percent in December 2012 to 49 percent six months later. The CBS also reports that the percentage of companies expressing confidence in the future clearly increased in the first half of 2013, an increase from 41 to 51 percent of the entrepreneurs. Confidence has increased especially with smaller companies. In the climate of investment, opinions were more positive in June 2013 compared to December 2012, with the percentage of companies indicating a negative climate of investment decreasing from 40 to 38 percent. Although the differences are small, these results indicate an end to the negative trend since June 2011. The Economic survey involves a random visit of most companies with ten or more employees. For more information, go to www.cbs.cw.
Changes in Formal Tax Law In April of this year, the Parliament has approved several changes to the General Tax Ordinance (Algemene Landsverordening Landsbelastingen or ALL). A few changes are included in this ordinance, one of which is the mandatory annual provision of information. It is mandatory for employers to provide information with regard to the wages paid to employees and pension funds, including wages paid to free-lancers. Insurance companies must also provide information with regard to pensions. With the aim to improve overall tax compliance, government has now included a new provision in the ALL that allows the tax department to publish regulations that would make it mandatory for banks to provide the amount of interest paid to residents. Insurance companies must also provide information with regard to the interest included in a benefit from a capital insurance. Currently, it is not mandatory for insurance companies to provide information on annuities, but this may be introduced in the near future. It is to be expected that government will announce these obligations before the end of this year. In that case, it is likely that local banks and insurance companies may have to provide information on interest and annuities paid to residents in the year 2013.
Renovations at Hato Airport Underway The approval was given to start renovations at Hato airport with Curaçao Airport Partners investing 17 million guilders for the project. The renovations will include the building of the technical department on the east side, which is to function as a FBO (fixed-base operator) facility, mainly for private aircrafts. A three-year renovation project of the runway and taxiway, involving almost six million guilders, is already underway. At the end of this year new chairs will be placed in the departure hall, air-conditioning in the check-in hall, a new x-ray machine for luggage and a new lavatory facility. The Curaçao Airport Plaza, which is opposite the terminal building, will be completed within one year and will have more catering and retail. The old terminal on the west side will be demolished and an expansion will be built on that spot. In the future, there will be an expansion of parking facilities with the possibility of a parking garage.
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business - export
Vital to the Economy of Curaçao
The Export of Services Before we ask why the export of services is important, we should take a look at what the export of services encompasses. It is basically the trade of services and goods with other countries; any type of service or good that is being sold to a non-resident. text Heather de Paulo and Dennis Dare, Curaçao Chamber of Commerce Senior Economist
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According to the International Standard Industrial Classification, the following categories are all defined as services: trade, hotels and restaurants, transport, storage and communication, financial, insurance, real estate and business services, as well as community, social and personal services. Export services that have a significant impact on Curaçao’s economy include oil refining, tourism and financial services. Shipping, international trade, and other activities related to the port of Willemstad (like the Free trade zone) also have a significant impact. A major share of the economic activity on Curaçao, approximately 82%, is comprised of services, which is equivalent to almost 4.5 billion ANG. Looking back at Curaçao’s economic and export history, the first profitable industry was salt mining from the saline-rich ponds located in the eastern part of the island. Salt was a lucrative export at that time and became one of the major
in comparison to our services. The export of services is, therefore, very important and has a significant impact on the economy of the island. It is actually the largest generator of revenue for Curaçao’s economy. According to John Jacobs, executive director of the Curaçao Chamber of Commerce, tourism is at least 25% of the economy and the dry dock is around 6 % to 8%. The international financial sector consists of around 8% and transportation and logistics around 6% to 8% of the economy. It could be said that, together with local trade and government, the export of services is the economy of Curaçao. Successful countries where export is a major player in their economy have complementary infrastructure and resources in place, such as a large pool of human capital, well-equipped and trained human resources, stupendous
A major share of the economic activity on Curaçao, approximately 82%, is comprised of services. factors responsible for bringing the island into international commerce. Curaçao’s geography, which at first was considered to be an obstacle economically, later proved to be invaluable due to its ideal location for trade and commerce. Once this was realized, shipping and trading operations that were centered around the port of Willemstad played an important role in the development of the economy. With the discovery of oil in the region in the 1920’s, Curaçao’s natural harbor allowed oil tankers to enter, lending way for the transshipment of oil products. This brought affluence to the island and, consequently, a mass influx of immigration with a subsequent boost to the economy.
that originate here or are imported, manufactured in some way and re-distributed internationally. Some examples are the Curaçao of Curaçao liquor and the Free Zone. The export of goods, however, does not compare with the revenue generated by the export of the services. Some examples of exported services include the oil refinery where the final product is exported elsewhere, the dry-dock, which repairs international ships and the tourists who come to the island, rent a room and maybe a rent car using foreign currency. Currently, there is a rising trend in companies that are established on the island, but provide services elsewhere. They are considered exporters of their services.
When we think of the import/export industry on Curaçao, it would seem the import industry is more significant, and it is. However, Curaçao exports many services and some goods. There are some products or goods
The volume of merchandise exports generated by the manufacturing sector did not grow as much as hoped. One reason for this may be because of the comparative disadvantage of that sector within the economy
educational system and high savings ratio, to name a few. However, the focus on investments and, in particular, exports certainly made these countries more competitive in the long run. The key is to create a balance between the expense of import with the income of export. Jacobs revealed that the latest trend we are seeing right now on Curaçao is local professionals who are increasingly providing consultancy services throughout the region. Companies and organizations in the international market are having the same issues that are seen on Curaçao. Curaçao’s professionals have the expertise and networking to deal with those issues, so they are reaching out into the international market to sell their ser-
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business - export
vices and expand. This is not only a trend, but also something the Curaçao Chamber of Commerce promotes, encouraging continued export of these services. Worldwide, small and medium enterprises (SME’s) have made up a major part of the services sector. Further strengthening and stimulating growth of the services sector can be a major factor in providing an increasing number of job opportunities and simultaneously alleviating poverty on the island. Due to lower costs, smaller enterprises prefer to offer their services offshore. Small firms are potentially in a better position to target a niche service market and become successful
It could be said that, together with local trade and government, the export of services is the economy of Curaçao.
when offering a top quality, value-added service tailored to the demands of larger firms abroad and/or foreign-owned companies in the domestic market. Nowadays, the whole production process is much more fragmented and can easily be separated, so SMEs can jump in an area where they have the expertise and/or are willing to invest and offer a better deal to the targeted foreign company. What are the critical success factors for growing Curaçao’s service exports? There seem to be three fundamental requisites for the services sector: well-trained and qualified human resources, an excellent quality of the telecommunications network and a sound institutional network. There are some key lessons that can be learned from other countries. If higher-end services are to be exported, human resources must be well equipped and command the necessary competencies. Research in Malaysia, Egypt and Chile, as well as Brazil, has shown
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that the lack of skilled human capital was a key factor in why the export of services in those countries were unsuccessful and/or has confronted problems. Also, in Chile, the lack of English language proficiency and the high-cost of broadband internet access are constraints for the further development of its commercial services. With respect to the institutional network, in particular customs and border management, business environment, intellectual property rights and contract enforcement, Curaçao seems to have a competitive edge in the last two factors, as our Dutch judicial system is well-developed and trustworthy. Commercial and business services would certainly be able to build on this respected institutional framework, which stands out when compared to the Latin American and the Caribbean region. The existence of credible and independent regulators is also seen as
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vital in the eyes of foreign consumers. In this context, a low level of corruption, simple and easy export procedures, as well as a flexible employment law, are further elements that must be in place to have a competitive services sector. The Chamber recognizes that despite economic challenges the island has experienced during the past decades, it was in particular our services sector that played an important cushioning role for our economy and brought the much needed diversity to offset various disturbing events worldwide. However, in 2011, foreign exchange reserves dropped significantly. If Dutch capital inflow comes to a halt in the near future this could worsen the balance of payments endangering our imports and the stability of our currency. Policy and decision makers would therefore do well to seriously focus on encouraging the growth of the exporting services community,
as this sector certainly has the ability to offer Curaçao the necessary boost towards sustainable economic growth, permanent jobs and foreign currency. The export of services is what brings foreign currency to the island. Jacobs stated that right now, Curaçao has a foreign currency reserve right of around four months, which is above the international norm of around three months. According to Jacobs, Curaçao faced a blow to its economy in the 1980’s and 1990’s. Shell left the island in 1983 and the Venezuelan Bolívar dropped by 50%. Punda was abandoned and ruined. Some of the stores that exist in Punda today opened during this period. They were the only ones in Punda at that time and they kept it alive. “We have had many programs of revitalization over the years that have resulted in the progress we’ve seen in the last 8 years, “ Jacobs said. “The quality Curaçao had in its heyday
It should be realized that without business and professional services, economic development would almost be non-existent.
is coming back.” It should be realized that without business and professional services, economic development would almost be non-existent.
in the world in terms of GDP per capita and 28th in the world in terms of nominal GDP per capita. The island has a well-developed infrastructure centered around exported services such as oil refining, tourism, financial services and activities related to the airport and seaport. Compared with the export of goods, excluding oil products and free zone transshipment, Curaçao’s export volume of services has been and still is a substantial foreign exchange earner, generating on average eight times as much foreign currency as merchandise exports. It is without a doubt that services has been and always will be vital to Curaçao’s economy. To achieve the government’s aim to make its economy more diverse, efforts continue to be made to attract more foreign investment.
Today, Curaçao has one of the highest standards of living in the Caribbean, ranking 46th
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business - advertorial
The Startup Stock Exchange has launched The Startup Stock Exchange (SSX) a global, regulated marketplace for startup investing and funding launched on June 10, 2013. Investors worldwide can buy shares of vetted startup companies in all sectors and in different stages of growth. “We are now officially open for business,” says CEO Ian Haet. “We are completely operational. Investors can begin registering and startups can start the listing application process.”
For companies, SSX offers a fee structure specifically designed for the capitalization of startups and small businesses.
text Jorge Cuartas
As a regulated marketplace, all SSX systems comply with the rules and regulations of the Dutch Caribbean Securities Exchange (DCSX), which provides the legal framework for listing and trading via the SSX. The DCSX is located on Curaçao and is an international exchange for the listing and trading of securities, similar to the NYSE or London Exchange. Since Curaçao is a constituent of the Kingdom of the Netherlands it abides by Dutch and European laws. “The Dutch Caribbean Securities Exchange in Curaçao offers a regulated and secure environment for investment,” says René Römer, CEO of the DCSX. “The opening of SSX is of great importance for investors and early stage companies around
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the world and we are excited to work with SSX to provide global investors the opportunity to own shares of innovative listed companies.” Investors of any level may use SSX; there are no minimum income or investment requirements. Investors buy and sell public stock in startups, while startups raise funds via public offering. Investors worldwide can open an account, verify their identity and start investing. “Once verification is complete, investors can fund their client account and pledge to buy shares of our initial public offerings (IPO’s),” says Haet. “Shares trade freely on the exchange, providing a liquid
market. Investors can buy or sell anytime and control their own account. Unlike other funding marketplaces, SSX allows anyone to become an Angel Investor. Using their online brokerage account, they may purchase 1 share, 100 shares, or any amount of shares.” For startups and small businesses, SSX provides a simple and comprehensive process for raising funds online.
Investors of any level may use SSX; there are no minimum income or investment requirements.
For investors, SSX provides access to vetted companies worldwide. SSX performs an extensive review of the company, investigating material facts, potential liabilities and the professional backgrounds of the management team. A company profile page, including share prices, shares, shareholders, trading activity and historical data, as well as company reports every two weeks, ensures total transparency.
experience in international business management and technology consulting, real estate development and finance to the company. His background as an entrepreneur and awareness of the challenges faced when seeking capital led him to create the SSX.
For companies, SSX offers a fee structure specifically designed for the capitalization of startups and small businesses. Founders can concentrate on growing since there is only one application and they retain control of their capital. Other benefits for companies include acceptance worldwide in any business sector, easy access to SSX’s global base of investors, mentoring and feedback, and reducing the time required for funding. SSX was founded by Ian Haet and Brian Niessen. As CEO, Haet provides a strategic view, a commitment to the customer and a clear sense of direction. He brings his
democratize the marketplace, creating opportunity for startups, early stage businesses and emerging companies.”
As Chairman and CIO, Niessen provides vision and a deep understanding of secure technical systems and data management. He has over 30 years of experience creating and managing technology companies. His expertise includes e-commerce, online banking, online gaming, and large-scale real-time transaction systems. SSX has received private funding from US and European investors, including Greg Kidd, a first round angel investor in both Twitter and Square. “SSX allows investors to invest with ease and confidence,” says Haet. “We are committed to provide a secure and transparent trading environment. I believe SSX will
The first initial public offering on the Startup Stock Exchange was VIP Only, which offered 250,000 shares at $2 per share on opening day. VIP Only is a daily deal site in North Africa offering exclusive deals on brand-name clothing at discounted prices. Investor clients of the SSX may now enter the website (www.Startup. SX) and pledge to purchase shares of this initial offering. The funding received from this offering by VIP Only will be used to increase its growth in Morocco and expand to Tunisia and Egypt. For companies seeking capital, SSX accepts applicants from all business sectors. A six
step vetting process guides applicants to listing. The first steps are to register and to submit an executive summary of the company’s business proposal. “I am looking forward to the next step,” says Haet. “Worldwide many entrepreneurs are building excellent businesses but don’t have access to the funding they need. At the same time, investors of all sizes don’t have access to vetted companies and diverse early stage opportunities. SSX changes all that. SSX is the marketplace that brings investors and companies together to achieve both of their goals.”
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business - taxes
Curaçao Social Security System The social security restructuring on Curaçao, as of the beginning of 2013, has brought some uncertainty and confusion. Considering the significant legislative amendments, we would like to discuss the highlights of the changes to the social security system.
Basic illness insurance (BVZ) As of February 1, 2013, the BVZ was introduced with the aim to harmonize the health care legislation into one coherent system and to provide basic health care for all inhabitants of Curaçao. In principle, all Curaçao residents and nonresidents earning income from employment on Curaçao fall within the scope of the BVZ. Therefore, eligibility is no longer determined by annual income. Those who were privately insured before February 1, 2013 are exempt. The BVZ mainly consists of the following three components:
Nominal premium – ANG 82 Individuals eligible for nominal premium insurance must be 18 years or older by January 1st of the initial year and must have earned an annual income of at least ANG 12,001 in the prior calendar year. The annual nominal premium is ANG 82 and should be paid at the Receiver’s Office. Since the new BVZ guidelines were introduced on February 1, 2013, each insured individual has up to June 30, 2013 to pay the nominal premium. In 2014 and thereafter, payments must be made by January 31st. Income-based premium - 12% (pensioners: 10%) The income-based premium is due by insured individuals with an annual income of at least ANG 12,001 up to ANG 100,000. Since the BVZ was introduced on February 1, 2013, a threshold of ANG 91,667 (11/12 x ANG 100,000) applies. In the employer-employee relationship, the premium of 12% is divided. An employer contributes 9% and an employee contributes 3% of the premium. The employer is obliged to file monthly returns reporting the BVZ premiums that are due.
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By way of pre-levy, the employer should withhold and remit the premiums that are due to the Tax Authorities. For the other insured individuals (e.g. pensioners and self-employed individuals), all BVZ premiums will be due at once, by lack of pre-levied premiums, at the moment the income tax assessment is paid. “Own risk” premium – ANG 1 per prescribed line This option is solely for prescribed medication. An “own risk” premium of ANG 1 per prescribed line must be paid to the pharmacy. Illness insurance (ZV) In addition to the BVZ, the old illness insurance still continues to exist, however, in a significantly amended form. The illness insurance now requires the employer to contribute 1.9% until January 1, 2014 for employees with an annual income not exceeding the threshold ANG 61,620, as determined by the Social Security Bank.
General old age insurance (AOV) As of March 1, 2013, extensive changes were introduced to the AOV because the old age fund is facing large deficits. The premium contributions for the AOV increased from 13% to 15% of the premium income (with an employer contribution of 9% and an employee contribution of 6%). The maximum AOV premium income was increased from ANG 93,000 to ANG 100,000. However, in case the individual insured under the AOV has an income exceeding ANG 100,000 per year, an additional premium contribution of 1% is due by the individual on an income in excess of ANG 100,000. Also, this threshold should be
business - taxes
applied in proportion with the amount of time an individual has been insured during the year. Consequently, if a person has been insured under the newly introduced AOV as of March 1, 2013, a threshold of ANG 83,333 (10/12 x ANG 100,000) applies. If earnings exceed ANG 83,333 in 2013, an additional contribution of 1% is triggered. The age to start receiving benefits from the old age pension increased from 60 years to 65 years. For individuals who reached the age of 57, 58 or 59 years before March 1, 2013, transitional rules apply. Individuals who are 59 years old as of March 1, 2013 are still entitled to receive the old age pension on their 60th birthday. Individuals who are 57 or 58 years old before March 1, 2013 can choose to retire between their 60th and 65th birthday. If the individual opts for retirement before turning 65, the annual old age pension payment will be permanently reduced by 6% for each year the person retires before his/her 65th birthday.
Other social premiums The other social premiums such as the General Widow’s and Orphan’s Insurance (AWW), the General Insurance Extraordinary Sickness Ordinance (AVBZ), the required disability insurance (OV) and the redundancy contribution, or cessantia, will remain with only minor changes.
The way forward The significant changes introduced in the Curaçao social security system will, directly or indirectly, affect all inhabitants on Curaçao. However, the changes were made and put into effect without giving sufficient time for proper preparation and coordination of the parties involved, such as the pharmacies responsible for collection of the ‘own risk’ premiums, resulting in legislation with technical and other lacunas. Various seminars were organized by the Tax Authorities and the Social Security Bank,
giving the attendees the chance to share their concerns. Considering the unresolved questions and problems raised, it is expected that reparatory legislation will be introduced shortly. Besides the changes enacted in the social security system in February and March 2013, significant changes are also expected for other taxes, e.g. the Curaçao turnover tax, real estate tax (amendment to the ground tax) and a change in regulations for the profit tax with the aim of providing relief for export. When this editorial went to press, it was still unclear if and when these changes will be enacted. Continued developments will be covered in future editorials. *Article prepared by Cristina de Freitas Brás and Kimberly Schreuders of Ernst & Young Dutch Caribbean (+5999 4305000).
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business - pensions
Vidanova Pension Fund Foundation th celebrates its 45 anniversary! Vidanova (formerly SPU) is a foundation whose beginnings date back to April 25th, 1968. In November of that same year, the Public Notary, Dr. Jacob Schiltkamp, passed a deed to transfer the assets from Stichting Pensioenfonds OGEM Nederland BV to the local foundation. In 1977, Vidanova became an independent entity from the founding company OGEM, and since then, Vidanova has had its own Board of Trustees. It is supervised by the Central Bank of Curaçao and St. Maarten as mandated by law for the management of all private pension funds.
This year Vidanova celebrated its 45th anniversary. In light of this milestone, Business Magazine interviewed executive director, Rafael Pichardo. Pichardo became involved with Vidanova in 1986 and was appointed as executive director in 1997. Since then, the company has grown by leaps and bounds, with a fivefold increase in sponsors and a tripling of assets. Vidanova, under the lead of Pichardo, has also contributed significantly to the research and development of the future of pensions on Curaçao and has played an integral role in paving the way towards complete pension reform.
Curaçao Business Magazine (CBM): What would you like the general public to know about Vidanova? Rafael Pichardo (RP): We are a multi-employer pension fund, which means sponsors in the private sector can join the fund. What we basically do, is we administer pension plans and manage the assets and the liabilities for these companies, which are established on the islands of the former Netherlands Antilles. In 1968, the company started with 8 sponsors, 1 pension plan, just over 400 participants and 4.8 million in assets. This year, Vidanova celebrated its 45th anniversary on April 25th and we now have 12 pension plans, over 4,200 participants, and, up until the first quarter of 2013, our asset base grew to over 750 million. We have also grown tremendously on both a quantitative and qualitative basis in terms of providing better service
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to our sponsors. In our 45 years we’ve never had underfunding; our funding ratio has always been above 100%. We have had a long-term net fund return of over 7% over that period of time. We have tried to maintain the buying power of our pensioners as high as possible by providing them with indexation. For instance, since 1988 going forward, we have indexed on average 2% per year. We are ISO 9001 certified, a certification for quality management. We have a board in which sponsors and participants have representation under an independent president. We are transparent in what we do and on a yearly basis we provide a report of our performance to both the participants and to the sponsors. We have a total of eight employees and we do all of the internal work of the company ourselves. Of course, we use an independent actuary from the Netherlands for certification and we use Price Waterhouse Coopers as our external auditor. We are very proud of what we have achieved over the 45 years. I can probably say that it’s a remarkable development that has taken place over that time.
CBM: Can anyone open a pension agreement with Vidanova? RF: We are a foundation that administers collective pension plans. This means that a sponsor with Vidanova can be an organization that collectively consists of two or more individuals. We aren’t allowed to enter into agreements with individu-
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als. An individual can only join the fund if he or she works for an employer who is a sponsor with Vidanova. The sponsor and participants choose the pension arrangement they desire, and we administer it and manage the funds for them.
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CBM: In 16 years, the fund grew by leaps and bounds (from 9 sponsors to 48, from 1,800 to over 4,000 participants, a tripling of assets). What do you think is the main contributing factor leading to this growth?
because we are a pension foundation. We don’t have dividends to pay to any shareholder. Basically, our participants are our shareholders. What we have tried to do over the years is to focus on the interest of the participants, guarantee continuity of the fund and maintain solvency as high as possible. All of our policies have been consistently developed in such a way to guarantee continuity of the pension fund. This has been our focus, both in quantitative and qualitative terms. That is what we have been doing and that is what we have reached until now.
RF: Our consistent, well thought-out policies and consistent management over the years, focusing on the interest of the participants. As a pension fund, the only interest we serve is the interest of our participants. We are exempt from profit tax
CBM: You mentioned that in 2008, Vidanova took the initiative to set up a report to address the concerns regarding the pension system in our country, particularly the effects of aging and the financial
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it’s evident that our country is aging at a tremendous pace, but we aren’t growing enough to compensate for it. Based on the Central Bureau of Statistics, in 2030 around 28% or nearly one third of our population will be over 60 years old. Besides that, our population isn’t growing. Since 2004, our fertility rate for women is 1.9, which means that a couple isn’t replacing itself anymore. By 2030, it is assumed that the population of Curaçao will be around the same that it is now, approximately 150,000 people.
viability of the system. What has Vidanova done to help the government set up a better plan and how can Vidanova continue to help the government in the future? RF: As a corporate citizen, we formed a commission, together with the Chamber of Commerce, the Association of Industries (Vereniging Bedrijfsleven Curaçao) and other professionals to analyze the pension system in the Netherlands Antilles at that time. Analyzing the statistics going forward,
Currently, our pension system is comprised of three pillars. The basic pillar is our social security, the AOV. The AOV is financed through a pay-as-you-go system, which basically means that those who are working today are paying the premiums that fund the pensions that are being paid today. The second pillar is the company pension plan, for example, the collective pension plans we (Vidanova) administer. Those two combined can reach a maximum of 70% of a person’s last earned salary over a full built-up period of at least 35 years. That’s the fiscal limit allowed on Curaçao. When the AOV system started in 1960, there were around seven employees paying the pension premium per one pensioner. At that time, the retirement age was 65 years. By 2030, it is predicted that we will have just two employees paying the pension premium for one pensioner. This will be a very big problem. To give an example, let’s say that Curaçao consists of 10 people. One of those 10 retires and receives 9,000 guilders as an AOV pension. That means the 9,000 guilders has to be paid by the 9 employees who are working today, so 1,000 guilders each. In three years, three more employees retire, all receiving AOV pensions of 9,000 guilders. Now, instead of nine divided by 9,000, the six employees who are left working have to contribute a total of 36,000 for AOV pensions, or 6,000 each instead of 1,000 each when the ratio was one pensioner to nine employees. Imagine what will happen in 2030 when you have two employees who have to support one pensioner. That’s something impossible to sustain.
Another issue is health care. Research has shown that people over 60 years old, on a relative basis, assume much more health care costs than a healthy person of 30 years. The comparison is one healthy person of 30 years consumes around 30-40% while one person of 60 years or older consumes around 280%, on a relative basis. Therefore, in 2030 we will have two problems. The whole AOV system and its financing base, which we currently have, will not be sustainable anymore because you don’t have enough people to fund it, and on the other hand
“By 2030, it is predicted that we will have just two employees paying the pension premium for one pensioner.”
you will have a huge problem with costs in health care. If 30% of your population is over 60, how are we going to pay the expected increase in health care costs? On top of it all, people are living longer. In 1960 a pension was probably paid out over a 10-year span. Today you have to plan to pay out a pension for 20 years or more. Curaçao needs a population policy because we have to grow. The Chamber of Commerce has already suggested to the government many times that we have to grow from 150,000 to 300,000, but in order to be able to do that, we need to have economic growth. Economic growth is the basis for more employment, more economic activity, more money coming in from sources like taxes, etc. You can imagine the dire situation we will have by 2030 if changes aren’t
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business - pensions
“Our investment policy is designed to invest the money in such a way so that we can generate the necessary cash flow needed to pay pensions over the lifespan of the retirees, on average for 20 years.”
made. This is why we analyzed the whole system and proposed changes to the government, including phasing out the whole AOV system over time and using a mandatory pension system for everyone. So our concern was expressed to the government, we sent a report, we gave presentations, but we can’t implement those changes because it has to go through parliament. Basically, not much was done with the 2008 report. However, last year the government decided to form a commission, of
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which I was a part, to come up with a mandatory basic pension plan for all the workers who don’t have a second pillar. The commission submitted its report in early January of this year and the government put it in this government program with the intention to introduce it by January 1, 2014. However, it still has to pass parliament. The parliament already passed reform in the health care law on February 1, 2013. In March, they also passed the age increase for the AOV, including premium increases. However, up to now, the economy isn’t improving. We have a problem and we are trying to convince the government that we have to take action because if we don’t, our children and our country will have a big problem to deal with in 2030.
CBM: How can you guarantee when a person reaches retirement age that the money is there? How can the person feel secure? RF: We are able to make that guarantee because our liabilities are completely financed on a yearly basis. Furthermore, we have consistent policies directed towards continuity. We have to maintain solvency and manage cash flow. Our invest-
ment policy is designed to invest the money in such a way so that we can generate the necessary cash flow needed to pay pensions over the lifespan of the retirees, on average for 20 years. We constantly focus on our long-term liabilities and how we are going to cover that. Today the pension world calls that “asset and liability matching” over the years. We do “asset liability management studies” every 5 years. In those studies, based on certain models and assumptions, many scenarios are generated going forward. Out of that study, you get a result on which you base your policies like indexation, premium policies, investment polices and pension policies. What we try to do is set those scenarios and policies in place so we are able to guarantee not only continuity, but also cash flows that we need to be able to pay the pensions over the long term. Our focus is not only looking at today, but also 20 to 30 years going forward. Our actuaries and advisors are involved in making calculations that help us address our policies in such a way that we can guarantee our solvency and continuity over the short and the long term.
CBM: What do you think about the Chilean pension system? What can be done to implement that? Can Vidanova help implement that pension fund model on Curaçao? RF: That’s basically the idea (a mandatory, individualized defined contribution pension plan for all workers). It’s in our report that we proposed to the government. As a matter of fact on October 4, 2013, we are hosting a seminar in celebration of Vidanova’s 45 year anniversary where we are inviting speakers from Chile, Columbia, Santo Domingo and the Netherlands who will expressly focus on what we have discussed today and how we can create a sustainable system going forward. In view of the fact that by January 1, 2014 the mandatory pension system will be in effect, we want to invite politicians and others involved to come to the seminar and listen to the Chilean history of 33 years with this type of system, Columbia that has had the system for 10 – 15 years, Santo Domingo that now has 12 years of experience and of course, an expert from the Netherlands. These are international speakers of high standards who have gone through the whole process and can explain the ins and outs of the system.
CBM: Since you started as Executive Director in 1997, what do you believe has had the most substantial positive impact on the fund? RF: I think you can summarize it in one word: professionalization. We have migrated from a pension administrative status to a professional pension provider that serves sponsors and participants on a total basis, but also improving quality of services, guaranteeing continuity, solvency and all those aspects that are important. So in one word, we have professionalized our pension fund to be able to meet current and future challenges over time. I think that is the most important contribution, on both a qualitative, as well as a quantitative basis. Also, we have been very transparent to our sponsors. As a matter of fact, you can see in our 45 years that we only grew in sponsors and participants and our client loyalty is very good. We measure client satisfaction on a yearly basis. We listen
“What we have tried to do over the years is to focus on the interest of the participants, guarantee continuity of the fund and maintain solvency as high as possible.”
to our sponsors and participants and try to accommodate them as much as possible. We support them with ideas and advice when they have problems and we try to do that consistently. I think that is the main focus and the reason why we are where we are today.
CBM: Is there anything else you would like to add? RF: Fifty percent of Curaçao’s workers don’t have a second pillar pension. It’s a cultural thing. They need to understand that they are responsible as an individual for their own future,
not somebody else. If they understand that, they can be educated on how to reach their material goals with financial planning on a consistent basis. In the past, incomes were lower, so people tended to believe that the money was needed in the present and saving for tomorrow was lower on their list of priorities. The belief of focusing on benefits now rather than focusing on benefits later has been a part of our culture for many years. It’s part of our way of thinking that has to change. People have to understand that we cannot rely on government or anyone else. We have to rely primarily on ourselves. The government has to create conditions to facilitate that, but we cannot put the government as the responsible entity for our retirement. That is my concern and the self-reliance aspect of pensions and retirement should be promoted more.
CBM: You are retiring the end of this year (2013). What are your plans after retirement? I come from a human resource background and worked in that field for over 20 years before I became involved in pensions. I think the most important thing is to manage your time productively. I have worked consistently for nearly 38 years. I always tell people that if you see your lifespan, starting at 4 years old, you start going to school and get into a routine – wake up early, go to school, etc. When you finish school, you continue in that same routine when you start working. By the time you retire, you have had a constant routine for nearly 56 years. Managing the time that becomes available to you when you retire in a productive way is the most important but also scary thing, because if you sit around and watch television all day and do nothing, you will basically have a problem with your mental development. You won’t be productive and I think it will affect you very rapidly if you don’t do something about it. So, I’ve been focusing on what I want to do. I’ve made a list of things I can do as a professional, hobbies I want to pursue, and other contributions as a corporate citizen, in my leisure time, etc. I’m prioritizing these and will pursue them as much as possible. I want to do things differently, but on my terms. I don’t want to have the same routine anymore and I want to be able to manage my time in the way that I think is best for me. For more information, you can go to Vidanova’s website at www.vidanova.net.
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catering
Enough is enough If you do it right, your standard working day at the office has plenty of variation in tasks and activities. If that is not the case and you have ample time between those tasks, you may be one of those people who fill those voids with snacks, coffee or other stimulants. Too often, the candy-drawer is visited.
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In spite of calls for more exercise, office work is, in general, sedentary work. An office employee burns too few calories and eating habits are not adjusted to that static work. This caloric imbalance can lead to excessive weight and lower levels of performance and wellbeing. It’s high time to take action! Following are a few suggestions and tips:
Consumption A male office worker of between 25 and 51 years of age who, apart from his work, does not participate in any sports, has a daily nutritional need of about 2,200 calories (kcal). A woman’s needs is around 1,900 kcal. Try to respect that limit. It is advisable is to spread the intake of energy over the day, so it’s best to schedule healthy snacks throughout the day. Ask yourself what you consider more important, a grand meal during the lunch break with your co-workers or a royal dinner at home in the evening. Once this has been determined, consider the amount of food
you ingest at other times. The ideal is three larger meals per day with small snacks in between. The trend “all you can eat” is fatal; this seduces people to eat a lot more than they actually need. Enough is enough, too much food will kill you.
Candy Lose the sweets! Of course you can take a sweet once in a while, but if, between the regular meals, you constantly ravage your candy cupboard because the stress, boredom or irritation overcomes you, you only harm yourself. Do you have trouble with kicking the habit? Start, for instance, by banning snacking on
candy during the morning hours. Is it impossible for you to get through the day without munching chocolate? Take a cube or small bar after the regular meal, as dessert, and enjoy it thoroughly in peace and quiet.
cut fruit, with or without the juices. This can be a nice and tasteful treat on your birthday and much healthier than chocolate cake covered with whipped cream.
Drinks Coffee is the lubricating oil of every office. But too much coffee is not conducive to your health. All of those different types of trendy coffee will also make you fatter. Take, as an alternative, a bottle of drinking yogurt or curd to the office or ask for them at the caterer’s counter. Be sure to take the low-fat variety! Some people drink energy drinks all day long, but take a peek at the calorie content of those
popular beverages and don’t forget to look at how many portions are in a container. Energy drinks do not give you more energy and they certainly do not make you slimmer.
Part-time Alternatives If munching candy is your thing, there are plenty alternatives for those calorie bombs. For instance, choose cherries, strawberries, cherry tomatoes, diced pineapple or melon. Variety is important! If you take an apple into the office every day, you will soon get bored. Each season brings many different fruits. The supermarkets provide an assortment of ready-
People with part-time jobs run the risk of eating too much – or too little. This is because their daily rhythm is interrupted. When they leave the office to go home at twelve thirty, they forget to have lunch or eat twice - once at the office and again at home when they inspect their fridge. Try to maintain the daily rhythm of three square meals a day. If you do not eat your lunch at the office, have a small
snack before you go home, for instance a fruit yogurt or a banana.
Mobile If you have a lot of appointments outside the office, also try to maintain the rhythm of three square meals a day. It is extremely appealing to take a burger or bag of fries when you have to stop for gas at the gas station (which nowadays usually includes a supermarket). You not only eat too fast, but too much fat with too many calories for one meal. This leads to an overall energy intake that is much too high and contains too few vitamins and minerals. Not very stimulating for your energy level.
Organisation If you have a full itinerary with external appointments, organize your day to have three fixed meals. Take your time to enjoy those meals and have a break after each meal. If you often end up in a traffic jam, do not revert to munching candies (make sure there is nothing of that sort in your car that can seduce you), but eat something healthy like a banana, fruit or whole wheat biscuit.
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Hospitality
The added value of an external venue In spite of the struggling economy, players in the corporate market still opt for a meeting at an external venue. One of the reasons is that such a location can make a significant contribution to the success of these types of meetings.
A meeting or other type of business gathering can take place within the offices of an organization, but an external location can add a great deal to the effectiveness and the end result of that meeting. By having a meeting take place in a different environment, for instance the proverbial cabin in the woods, the resort on the heath or even at the seaside,
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you are literally away from the distracting surroundings of the office. What is more, at an external location, provisions like food and beverage, facilities such as beamers, sound equipment and any other necessities are arranged for you. That means that on the big day itself, you do not have to worry about the peripheral issues; you can focus completely on the content of your meeting – and its participants.
Location There is an enormous variety in the types of venues available that provide rooms for business gatherings. Nowadays, every hotel has spaces that can be used for such meetings, but there are also venues that cater specifically for meetings lasting one or more days. In order to make a well-founded
be practical because parking in a city center can often be a problem and the rates are usually rather high – unless the venue has its own dedicated parking lot.
Facilities A third aspect that plays a role is the type of facilities that a venue has to offer. Obviously, there has to be sufficient room for your meeting, course or seminar. Then, there may be the need for breakout rooms in case the group has to be split up. This is certainly a question to ask the venue manager. Apart from the room(s) or hall itself, the layout is also important. If a presentation is followed by group sessions, it is advisable to choose a layout that can be used for both parts of the meeting. Many venues offer various layout possibilities for each room and can give sound advice on the setting in those rooms. It goes without saying that this setting should be ready for you when your guests arrive. Often, a plenary session includes the use of a beamer, a flip-chart, and nowadays it is assumed that all venues have WiFi. This is standard equipment for any self-respecting venue. There is a difference, however, in the rates venues charge for the use of these services. They can be included in the arrangement or have to be paid separately after the session. Another aspect is the climate in the room; the participants feel comfortable when the rooms are provided with an air conditioning system and have enough daylight.
Catering decision regarding the selection of such an external location, some important issues have to be taken into consideration. One of the crucial issues is the location of the venue. In the case that the meeting in question will be a very intense one and that major decisions will have to be made, it is probably wise to hold that gathering at a venue in a rural setting. You will be less distracted by sounds and commotion than when you are in a bustling city. Another advantage of such a remote venue is that it usually has several (outdoor) facilities to relax, so you and your guests can charge up your batteries. Such activities can vary from a leisurely walk in the woods to running an obstacle course. All activities can, of course, be included in the program of the meeting.
Accessibility Another critical issue when deciding on a venue is the accessibility of its location. A rural location can often be reached by car, although a growing number of venues have their own shuttle service from a nearby railway station. The big advantage of a rural venue is that it usually has ample parking space where you can park your vehicle at a very low rate or even for free. In the case that corporate social responsibility plays an important factor in your meeting, a venue in a city centre can also be an option because people can come by public transport. This can
Before the actual meeting or training, a cup of coffee is always welcome. It is also nice to have sufficient drinks available throughout the meeting. Around lunchtime there is, of course, time for a longer break. Since the food is usually an important issue, this has to be in perfect order. An external venue can arrange an excellent meal to be served at a convenient time. In today’s day and age, there is ample choice of lunch menus and an external venue often has a wide variety of regional products. The big advantage of an external venue is that you do not have the disruptions that come with being in your own office – provided you even have the space to hold a larger meeting. Business can go on as usual while you are away at the external location; your co-workers will not be distracted by all the hustle and bustle of the participants. After the selection of an external venue and discussing all the arrangements with the hospitality manager, you can focus completely on the preparation and content of your meeting. Professionals arrange everything for you and your guests. Meeting in unfamiliar environment also stimulates the creativeness of the participants. This gives an extra, added value to your meeting.
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New Services offered at Nieuwe Post The delivery of communications from one place to another has probably been around as long as man. The first documented use of an organized courier service originated in Egypt as far back as 2400 BC. The days of delivering mail by pigeon, oxen and horse are long gone.
While these methods seem ancient, even the mail delivery methods we have all experienced in our lifetime are starting to become obsolete. In our technological age, we may even see complete antiquation of the mail system as we know it today in the lifetime of our children or even our own lifetime. Franklin Sluis, CEO of Post NV is aware of the changes to the mail system and is working to stay ahead of the game. He realized that the postal system could not continue on as it had been and has introduced some innovations to Curaçao’s mail system that will keep it competitive now and in the future. Sluis has been CEO of Nieuwe Post since November 2008 and, without wasting any time, implemented a new business plan and image for the company in 2009. Sluis recognized that the postal service must look into new ventures to maintain the business needed to pay salaries and keep the company afloat. A post office is no longer able to survive on transporting letters from point A to point B; today it’s more about moving things and packages. It’s also no longer acceptable to order something and receive it in two weeks’ time; customers want to receive their items today, requiring the shortening of time between purchasing and receiving. This demand changes the logistics of the postal system and requires that it take on a whole new role. Boosting business is not only about the act of transport, but also about creating more of a need
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The mail delivery methods we have all experienced in our lifetime are starting to become obsolete.
for transport. In 2010, the Post started creating a web portal, a sort of “Amazon” for Curaçao. The first web portal was called Bbuyzzz, but it is being replaced by Punto Mio, which gives more options. Many are familiar with Ezone, which was literally just an address in Miami in the United States (US). Some shortcomings of Ezone were that many online stores from the US require a US credit card and shipments were sent to Curaçao only twice a week. The beauty of Punto Mio is that for most websites, when you enter your Punto Mio address, your items are tax-exempt because the system recognizes the address as a tax-free zone. Also, if you don’t have a US credit card, you can come down to the post office with a printout of your shopping cart and can pay with cash or with a local credit card. Unlike Ezone, the Punto Mio service has the advantage of flights arriving on Curaçao every day, except weekends, so you should receive your items
within a week of them arriving in Miami. The Nieuwe Post has the advantage of Customs being in the building, so clearing customs is quicker, expediting the delivery time of your items. If you are a person who dislikes going down to the post office and waiting in line for your packages, you can also sign up for home delivery service. When your item arrives, the Nieuwe Post will notify you and set up a day and time to deliver your items. The driver will come with a swipe machine so you can pay on the spot (no cash accepted for the security of the drivers). You need to sign up for home delivery in person at the post office. What if you want to order a large item, like a whole kitchen or bedroom set? If an item weighs over 75 kilograms, Nieuwe Post will offer the option to ship by sea, which would
soon, the service will be available from the United Kingdom and Holland, two shopping hotspots for Curaçao residents.
A post office is no longer able to survive on transporting letters from point A to point B; today it’s more about moving things and packages.
According to Sluis, there’s a big future for online web shops. In a short amount of time, Nieuwe Post will launch a web shop where local products can be sold to local markets. Nieuwe Post has relationships with local companies where you can order online and have your item delivered to your house within 24 hours. A good example is if you want to order a large item like an appliance or television. If you don’t have a car big enough to transport the item, it can be brought to your doorstep.
be much less expensive, via OC Cargo. OC Cargo leaves Miami every Friday and arrives to Curaçao on Wednesdays. As of right now, the Punto Mio service is only available for items ordered from the US, but
Another service that will be available on the local web shop is the purchasing of stamps. Especially for philatelists, the web shop will contain photos of stamps, year collections, first day envelopes and other collectables. It will be
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easy to find the stamp you want thanks to the extended search possibilities. When stamps are sold online you don’t have to depend on different agents to sell them. This also allows for consistency in sales; how the stamps are sold, the fees collected for each stamp, etc. Stamps are used to pay all the fees necessary to mail a letter or package, including transportation costs, not only in Curaçao, but also the postal agency in the destination country. Offering the stamps in this way allows Nieuwe Post to have more control over the stamps and how they are sold. On the subject of stamps, Nieuwe Post offers personalized stamps. For special occasions like Mother’s Day, Christmas, a birthday or for a business logo, Nieuwe Post will work with you to design a personalized stamp to suit your needs. Printed mail is a new service that allows companies with bulk mailings to let Nieuwe Post
view mail delivery. People aren’t sending as many cards and letters as in the past, so the postal industry has to change. Express delivery companies like FedEx and DHL are taking over the delivery industry, so national postal services, like Nieuwe Post, must change with the times to keep up with consumer demand. Eventually, Nieuwe Post wants to be the logistical hub between the Caribbean, Europe, the United States, South America and beyond. Punto Mio and OC Cargo are part of that vision. The idea is one shipping point, one shipping fee.
It’s also no longer acceptable to order something and receive it in two weeks’ time; customers want to receive their items today.
do the work for them. Send the digital file to Nieuwe Post and they will print, envelope and deliver what the respective business requires. This allows for outsourcing that gives companies the opportunity to focus on their core business. This service is starting on Curaçao and will eventually reach out into the region. Business is changing, and so is the way people
If you would like to sign up for the Punto Mio service, you can go to www.puntomio.com or to one of the Nieuwe Post branches.
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office
Checklist workstation Everyone performs their work in their own manner and has their workstation structured according to their individual wishes. Still, there are number of recommendations for organizing a workstation efficiently. We state those guidelines here and to make it more practice-based, we first state the problem, then the solution: ¥ Problem, • Guideline, and > Possible solution.
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¥ Problem: I need more area to perform my tasks, so more desk space. •Guideline: The desk surface must have a minimum size of 1,600 x 800mm, so 1.28m2. For workstations with only a monitor where few paper documents are used and there is little variation in tasks, the desk must be at least 1,200 x 800mm. > Solution: Enlarge the desk space available, for instance by using an extra side table or mobile chest of drawers. As an ultimate solution, ask the manager for a larger desk.
¥ Problem: My desktop cannot be adjusted to my ideal height. • Guideline: The fixed desktop should have a height of 74cm (+/- 20mm). The ideal is a height-adjustable desk or a sit/stand desk. The latter can be height-adjusted from 650mm to 1,250mm. > Solution: Ask for another desk, preferably one that is (electrically) height-adjustable.
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¥ Problem: I have to sit still, in one position, because there is too little space for my legs and feet. • Guideline: There must be sufficient leg space. This must be at least 850mm wide. > Solution: Remove any objects that limit movement, such as a trashcan.
¥ Problem: My sit/stand desk has too little space, I cannot change my position regularly. • Guideline: The space around sit/stand desks must have a foot space of at least 790mm wide, 150mm deep and 120mm high. > Solution: Remove any objects that limit the movement, such as a trashcan.
¥ Problem: Paper and files are always stacked next to the keyboard or I stick them underneath the monitor screen. • Guideline: If you have to work with a lot of
paper, use a document holder that can be tilted between 15 and 75 degrees that is large enough to hold your documents and is stable. > Solution: Ask for a document holder with those qualities, preferably one that can be set parallel with the keyboard and the monitor. Alternative: one that can be fixed next to the monitor screen, at the same height.
¥ Problem: My neck hurts from switching my view from the monitor at my left-hand side to my telephone at my right-hand side. • Guideline: Supplies and accessories that are used often must be placed centrally in order to prevent uncomfortable movements and poses. > Solution: Fix/ hang the monitor right in front of the chair, in a 90-degree angle to the lengthside of the desktop. Make sure the desktop is sufficiently deep to facilitate the placing of the keyboard, document holder and monitor in one straight line. Place the telephone and any other often-used accessories within easy reach.
criteria can be met. A pair of special computer glasses can also help.
¥ Problem: My neck hurts from looking up/down at the monitor screen. • Guideline: The uppermost line of the document on the screen should be at eye level or lower. > Solution: Set the monitor lower/higher, for instance by removing it from the desktop computer housing. People wearing glasses with multi-focus lenses or with only a reading-section in their lenses, the monitor should preferably be placed a little lower.
¥ Problem: I have only a laptop on which I have to work for long periods of time.
¥ Problem: My head hurts from squinting at my computer screen.
• Guideline: The keyboard is separate from the screen and can be placed in a variable position. In front of the keyboard there is enough space to rest the hands/wrists on the desktop. > Solution: Ask for a laptop stand with a separate keyboard and mouse. There are also separate numeric keypads that can be USBconnected to the laptop.
• Guideline: The distance between the eyes of the user and the monitor, the keyboard and the document holder should be equal and at least 50cm. > Solution: Place the screen farther/closer or set the font size at a higher/lower level. Structure the desktop in such a way that the suggested
¥ Problem: The cables of mouse and keyboard swerve across the desktop, sometimes they even upset my coffee cup. Underneath my desk, I get entangled in the wiring and cabling of my equipment and accessories.
• Guideline: The wiring and cabling of the equipment should not hinder work or cause problems when the user changes position. > Solution: Use wireless equipment or structure the desktop in such a way that no wire or cable causes trouble. Even better: use special, adequate – and safe – cable management with clamps, gutters and such.
¥ Problem: My workstation only has overhead lighting and although it’s powerful enough, it also creates shadows on my desktop. • Guideline: The lighting in the office should be adequate, offer sufficient light and no blinding or reflection. > Try individual lighting by means of a desk lamp, preferably one with LED lights. Make sure the light does not blind or create reflections on the monitor screen.
¥ Problem: There are not enough electrical sockets/outlets for my equipment and my private stuff, such as chargers, so I have to bring my own power extensions. • Guideline: The power facilities available are sufficient for all equipment and safe. > Solution: Do not DIY with electricity at the workstation. Ask the facility manager for more sockets at or near the workstation. Using loose plug-in banks can cause safety risks.
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office
The ergonomic home office It is becoming more and more popular to perform office activities at home – in the home office. An increasing number of employers encourage their staff (those for whom it is possible) to work part-time at their homes. The advantages are as numerous as obvious: less traffic jams, less workstations needed at the office, more freedom and responsibility for the employee, et cetera. But does the employee consider ergonomics when creating his or her home office?
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Ergonomic rules The ergonomically responsible workstation is determined, apart from the main rule of ergonomics - man is the basis – by three principles: • all elements of the workstation and the total working environment (room, climate, lighting), the so-called hardware (computer, monitor, keyboard and such) and the furniture (table/desk, chair) play a role. • the separate elements should be adapted to the body size and proportions of the user and his/her tasks. • the separate elements should be matched: if you have an ergonomic chair, but your table/desk is too high or too low, you will still end up with a physical problem.
Apparently, there are still people who do their office work sitting for hours on end on a straight chair at the kitchen table or lounging in a sofa with a laptop on their knees. It’s such a pity since there are many solutions that are ergonomically safe.
There are as many ways of creating a home office as there are houses – and people. Everyone decorates his or her home office after his or her own preferences, only limited by the space available. The manufacturers of office furniture have recognized this trend and have extended their assortment with products that can match the style of the rest of the house. In general, these desks, chairs, cabinets and such are beautiful and range in design from practically compact to trendy. However, this nice furniture has to meet the same demands as “real” office furniture. It is only ergonomically correct when the user knows how to make them fit his or her individual size and proportions. It all starts with deciding how to select the right furniture for your personal needs and comfort. This initial step is where it can go wrong, very wrong. If you have to work on a computer often and for a long period of time, it is essential that the working environment be organized in an ergonomic manner. Monitor work affects the user’s health, not only putting strain on the eyes, the (lower) back and the upper body, but the user’s psyche is also under stress. However, this article is limited to the physical complaints and how these can be prevented.
• the desktop is too small: the distance between eyes and monitor is too short and there is not enough room to place documents • the monitor, mouse and keyboard are not correctly positioned • there is not enough leg space • the lighting is inadequate Too often, the home office is tucked away in some otherwise lost corner or a part of a room is provisionally dedicated as the “office.” It is true that not everyone has the luxury of a separate room for his or her home office, but using a part of a room or some lost corner eventually leads to physical problems. When purchasing furniture and other articles for the home office, some basic aspects must be taken into consideration: • the table/desk and the rest of the furniture (cabinets and such) must have a matt, non-reflecting surface • glass or metal surfaces are not recommended as these reflect (sun)light and absorb and give off heat • there must not be too big a difference in color or model, as this distracts and creates an unorganized impression • the most important elements are the desk and the chair
Defects
Variation
For the specifications of an ergonomically sound workstation, please refer to the article ‘Checklist workstation’ in this magazine. The most common defects of the home office are: • the desktop can not be height-adjusted
Another crucial factor for the healthy workstation is the type of the work at hand. Four hours of working on the computer is really the daily maximum. Computer work must be varied with other tasks that differ from monitor work in
order to lower physical as well as mental stress levels. These other tasks can include meetings, short conferences, making calls, doing chores or even DIY activities. Create the interior of the home office in such a manner that you have to get up regularly, for instance to clear away finished documents or get coffee. If the home office is upstairs, this is even better to get a little exercise. Use your free time (make sure you have enough of that - take breaks and stick to the standard office hours as much as possible) to do some exercises, walk the dog or take a rest. This is better than plowing through hours on end. Variation prevents over-exertion of the eyes, back and upper body because they are then used in a different way or not at all.
Suggestions In the case that the workload consists only of computer work, we suggest that the work is divided into two or three blocks, each including a five or ten minute break (or longer, depending on the intensity/complexity of the task, but definitely not longer than 20 minutes). Use these breaks to do some exercises, for instance, take a walk. Try to exercise the entire body. Take several deep breaths, in through the nose and slowly out through the mouth. Some other suggestions are: hang up the laundry, water the flowers and plants, walk the dog and so forth. The purpose of taking a break in work is to lower tension in the eyes and other body muscles, to stimulate blood circulation and to keep performance level high.
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news
Cruise Village and Second Mega Pier Getting Closer to Becoming Reality The plans of the Curaçao Ports Authority (CPA) for a cruise-village and a second mega pier are becoming more concrete. According to the Minister of Economic Development, Stanley Palm (PAIS), a preliminary estimation for a second mega pier, including the cruise-village, will be 50 to 60 million guilders. The CPA-project for a cruise-village includes a terminal for cruise passengers, catering and shopping facilities and attractions. It will be built along the coast between the Renaissance Resort and Holiday Beach, including the mangrove park. According to CPA director, Humberto de Castro, the two most important requirements for a cruise-village are that it must be open and freely accessible for the population and simultaneously include all services for the cruise industry. The CPA is working on a financial feasibility study to determine if it’s possible to construct both the second mega pier and cruise village simultaneously. Once construction is underway, developers can start renting units to interested parties.
UNA Hosts First Caribbean Job Fair The first Caribbean Job Fair, opened by Minister of Social Affairs and Employment, Jeanne-Marie Francisca (PS), was held on August 2nd and 3rd at UNA, where the ministry was the main sponsor. “The focus was on finances and the economy, “ the minister said. “The population must realize the importance of making progress and being independent.” Francisca believes that all things related to social affairs should be a priority, but movement in the labor market is the most important. Therefore, she applauds the initiative from the private sector to organize a Job Fair. The ministry is busy setting up a Job Centre and a vacancy section. Unemployment on Curaçao is around 10 percent and 25 percent among youngsters. The minister mentioned school dropout as one of the reasons for the high youth unemployment experienced on the island.
Hotel Room Tax Levied The Curaçao Tourist Bureau has levied a room sales tax at a rate of 7%. The government has amended the sales tax (Omzetbelasting or OB) in order to abolish the room tax. It is now expected that this change will take place as of January 1, 2014. The hope is that this will make compliance somewhat less burdensome since only sales tax must be paid. Hotels or other businesses that are currently subject to room tax must make a distinction between different categories of goods and services provided in order to levy the correct amount of sales tax: 9% on food, soft drinks and alcoholic beverages, as well as on diving and other tours; 7% on the room rate; 6% on other goods and services.
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office - acoustics
Noise in the office Open offices have the advantage that their users can communicate directly with each other and that they experience a sense of openness. The big disadvantage of this type of layout is that this contact can disturb other workers in the room. Communication is a good thing, but it may affect other people’s performance.
A survey among almost 1,000 office employees in Germany showed that half of the interviewed staff experienced discomfort from colleague chatter and other sound-producing sources. Bad acoustics cause stress, make it harder to concentrate and affect performance and health. Common measures to improve acoustics include the placing of partition walls or screens, exchanging hard flooring with soft carpeting, applying sound-absorbing wall coverings and the hanging of so-called sound catchers from the ceiling. Recently, it has been a trend for furniture to be finished with sound-absorbing materials. Below is a list of the various acoustic solutions and the pros and cons of each:
Wall solutions: partition walls and separating screens/cabins PROS: + improve the general room acoustics + reduce the transfer of direct sound between source and ear + reduce the sound level caused by sources from the outside + you can use many different materials as sound absorber: gypsum, chipboard, soft-board, various textiles, etc. + these solutions can also be used as
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room divider, for instance to separate workstations from each other CONS: - not suitable as sole solution - they do not reduce sound level that occurs from the inside of the barrier
Ceiling solutions a) a complete solution for the entire ceiling PROS: + because of the large surface, this solution adds enormously to optimal room acoustics + is the most effective solution for reducing the total volume of sound production CONS: - relatively high costs and drastic measure with a renovation or implementation after construction - little flexibility to make changes to the geography of the building or with a move - an optimal sound reduction can only be achieved by placing partition walls b) ceiling sails PROS: + can be applied separately or combined with other solutions as an additional measure to a complete solution + various possibilities for specific spatial demands
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+ can also be combined with lighting solutions + makes it easier to apply specific accessories + dampens sounds, filtering echoing and noise, thereby improving clarity of the spoken word
Sound absorbing flooring, ceiling and wall finish Sound disperses in all three directions. Therefore, from the viewpoint of room acoustics, it is advisable to provide a room with sound absorbing facilities in all facets.
Flooring PROS: + contributes to a reduction of noise between rooms + reduces the total sound production in a room + textile flooring (carpet and carpet tiles) has a big advantage in that they dampen sound and reduce the noise caused by people walking. CONS: - the absorption by flooring has a minimal effect towards the total reduction of sound - hard flooring (tiles, parquet, laminate and such) hardly influences sound damping - only effective in the middle and high frequency range because of the scant thickness of some types of flooring - not suitable as a sole solution
Decoration elements with sound absorbing surfaces PROS: + application is flexible, if no structural measures must be taken + act as sound screens, reducing the direct transfer of sounds + especially suited for application in open offices and combination offices + since the screens can be placed directly at the source of the sound, transfer is avoided CONS: - f urniture does not add constructively to improved acoustics - only an extra measure when solutions for flooring, walls and ceiling prove to be insufficient
Cabinets and shelves + sound cannot pass through them so they are acoustically effective, even at low frequencies + effectiveness is comparable to ceiling solutions + specific contours in combination with sound absorbing materials, like jute, cause a reduction in reverberation in the entire frequency range + sound absorbing dropped ceilings create a reduction of sound dispersion
Paintings and such + add to the optimization of the room acoustics and can very well be applied as decorative addition to the room
Ceiling elements + original solution to acoustic problems + flexible because of the simple construction and mounting + the element consists of sound absorbing melamine foam, finished with a special acoustic fabric
Equipment emitting little noise + there are quality marks that also provide data on the maximum sound production of the apparatus The Blue Angel qualification, for instance, guarantees a maximum sound level of 48 dB (A) in standby modus + apparatus in use may not produce more than 55 dB (A) + manufacturers are obliged to provide data on the sound production (in standby and in use modus) that are checked by recognized test laboratories + sound isolating mats or covers reduce the dispersion of sound by noisy printers and other equipment and machinery
Chairs + effective for large open spaces like halls + finished with sound absorbing materia
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energy management
Energy efficiency and maintenance Nowadays, owners of commercial real estate are increasingly active in trying to find possible cost savings for their buildings. Maintenance costs are often placed low on the priority list, but saving on maintenance has a negative effect on energy management. Less maintenance = higher energy consumption.
When the entire life span of a building is taken into consideration, the costs for design and construction amount to between 5 and 10 percent of the total cost. The cost for acquisition, renovation and disposal are responsible for about 5 to 35 percent of the total life cycle cost, whereas the cost for use and maintenance amount to between 60 and 85 percent. Personnel costs amount to 88 percent of the total life cycle cost of the building, use and maintenance cost 11 percent of that and design and construction are responsible for 1 percent. Thus, the costs for use and maintenance are a significant part of the total life cycle cost of a commercially used building.
Consumption Six years ago, it was calculated that in the United States, commercial buildings were responsible
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for 71 percent of the total electricity consumption and for 38 percent of the exhaust of carbon dioxide (USGBC 2007). Seventy-five percent of the total energy consumption of commercial real estate is for lighting, heating and cooling. The remaining 25 percent is used for ventilation, cooking, cooling and office equipment (including elevators and telephones). It is therefore evident that commercial real estate has a major impact on the economy as well as on the environment. That is why it is important to know the details of a building’s performance with regard to energy management. Especially in the current economic situation, it is a huge challenge for building owners and managers to not only be advised of these data, but also to be able to proactively manage the consumption and therefore the costs of the use of the building
itself, its processes and its equipment. Collecting this data is not too difficult; any basic Facility Management Information System (FMIS) contains a module that monitors the energy consumption. The challenge then lies in analyzing and interpreting this data. This challenge is increased by the current user situation of the systems applied by the management (energy, climate) of the building. Many buildings still use systems and equipment that is not used optimally or does not even work anymore. In situations like that, it is impossible to acquire accurate information on the entire energy consumption of the building. The causes of unnecessary energy consumption can then not be identified, let alone remedied. The result: needlessly high energy costs for heating and cooling, ventilation and air conditioning, as examples.
Means Additional problems are a lack of means to finance an effective maintenance program, an inadequate use of automated maintenance systems and FMIS systems. What is more: many owners and managers still regard their property as a utensil and not as a form of capital investment. Even when an effective energy program is used in a building, but with no effective maintenance program, the performance of the equipment will decrease in the long run, partly because sen-
sors and meters will lose their accuracy due to lack of regular calibrations. In that case, the data regarding the energy consumption will lose their value because they are no longer reliable. However, it was proved (in an American research study in 2009) that a building which is used correctly and has an effective maintenance program in place but is designed badly, still has a better energy performance than a well-designed building that is used badly and has a non-effective maintenance program.
Proactive As a result of the economic hard times and the problems in the real estate market, serious cutbacks are made in various sectors. In many cases, the first item on the expenditures list is the personnel (as the most expensive factor) and next in line are maintenance and management of the building. Although many organizations already have an FMIS installed to effectively manage their facilities, too little action is taken (or no action at all) based on what such a system can offer: long-term data on maintenance and proactive maintenance. This can affect the total value of corporate real estate and in the long run, result in considerable costs because, as a result of overdue maintenance, entire installations have to be replaced. This can be interpreted as a
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energy management
positive development, as the new installation most likely performs more efficiently than the old one, but if the old installation was far from having to be replaced because it was not yet written off from the books, this boils down to capital loss. For various reasons, many organizations take residence in smaller buildings or dispose of a part of their real estate because they no longer need it. If the old buildings have no effective and efficient installations, they are even harder to lease or sell. The buildings constructed these days are highly efficient and fitted with state of the art high performance equipment. Older commercial property, partly because they do not have these modern installations, can hardly be sold or leased. This is one of the reasons why there is more and more support to destroy those old buildings. Now that would be a huge capital loss, but a rescue plan could be construed to save a part of all those unused square meters. A major part in this plan could be the renovation of the installations and the integration of solutions that would make the management (maintenance!) and use easier, more environmentally sound – and cheaper. This will entail a huge investment, but in the long run, can interest a user/buyer.
Subordinate Energy efficiency is a basic part of sustainability. However, the role played by maintenance in the discussions on energy efficiency is usually subordinate or even totally absent. But without effective maintenance, the energy consumption will become less and less efficient because drive belts will start slipping, ball bearers will wear, and sensors will lose their accuracy. In view of these challenges, as well as regarding the costs and the impact on the environment of buildings, new tools have to be developed to be able to realize the goals set with regard to energy consumption. This need will increase as more and more demands are made to the design, construction and use (management) of existing corporate real estate that are optimally environment-friendly, climate neutral or even climate positive because they are fitted with installations like solar panels, windmills and such. In that case, maintenance cannot be considered as a separate issue from an effective energy management.
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Big Data: here to stay
The next big thing? After the cloud, mobile apps and social media, Big Data is the most recent buzzword. Big Data is not only about the enormous amount of data that is still increasing with lightning speed, it is mainly about the ability to combine information from various sources and to enrich and analyze this information. This leads to new knowledge and the possibility to make highly accurate predictions.
structured as well as unstructured. Moreover, its added value is mainly due to its ready availability. A database with client data – no matter how large – does not qualify for the definition. That is, however, the case when information on earlier purchases is combined with data on web surf behavior, to trigger someone on line with a tailor made offer.
Flu The term Big Data is hot; it is the subject of an increasing number of blogs, books and meetings. For many, the notion means huge data centers with endless rows of servers, but that is just a part of the story. The main point is not so much the availability of data, but what is being done with it.
Multiple sources According to ICT research agency Gartner, Big Data must entail volume, variety and velocity. Data must come from multiple sources and must be suitable to be enriched by other data,
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In order to shine some light on the scope of Big Data, Viktor Mayer-Schönberger and Kenneth Cukier give a number of clarifying examples in their book The Big Data Revolution. When a new influenza virus raises its ugly head, information regarding the spread of the virus is almost always dated. Usually, people have already been ill for some time before they call a doctor. Also, data is not gathered continuously. Google researched whether the spreading of a virus could be predicted at an earlier stage. In order to do so, they compared the online search behavior in the US to the official data on flu.
This was already tried before, but without Google’s calculating capacity and statistical expertise. The key was not – as was expected – search terms like ‘flu’ or ‘cough medication’. Therefore, Google designed a system that did not consider the content of search terms. It looked only for a match between the frequency of certain search terms and the spreading of the flu. The processing of 450 million different mathematical models eventually yielded a combination of 45 terms that showed a strong correlation with the national flu figures. Using this method, it proved to be possible to predict the geographical spreading of flu in almost real-time. During the 2009 flu epidemic in the US, the Google system was more practical and faster than the after-the-fact statistics.
Cheap tickets The Big Data Revolution also discusses an initiative by Oren Etzioni, Big Data pioneer. He developed a prediction system for the price of airplane tickets, based on an analysis of 12,000 price observations of a travel website. This led to a small-scale model that performed well in practice and was further perfected by Farecast, a webcompany/website owned by Microsoft that predicts airfares. Farecast additionally gathered large numbers of data from a reservation database from the airline industry, processing almost 200 million flight price records to support it’s fare predictions. Therefore, if a drop in price is expected, advice is given to wait to purchase the tickets. If the average rate is pre-
dicted to go up, it is clever to strike. Microsoft bought the company in 2008 and integrated its service in its search engine Bing.
Right turn Professor Erik Brynjofsson is director of the MIT Center for Digital Business and a popular speaker on, among other subjects, the impact of data. He had projects with Big Data including 330 researched companies and he elaborated on some of these during a conference in Amsterdam last year. A winemaker, for instance, can predict beforehand how his wine will taste by carefully analyzing the composition of his product. Parcel deliverer UPS used Big Data to determine that a route in which the vans make only right turns is faster and cheaper than the ‘traditional’ shortest route. An analysis of the search assignments in Google in the United States proved to be more valuable as a predictor of the readiness to purchase houses than statistical models like historic data and economic indicators.
Microscope When evaluating Big Data projects, Brynjolfsson saw an average 4 percent increase in productivity; profit was up by 6 percent. Of course, not all the projects are success stories, he stresses. But if a project does not yield results, according to the professor, it is not because of a lack of relevant data, but because of the quality of the analyses. Brynjolfsson regards big data not only as a technological break-
Revolution In The Big Data Revolution, Victor Mayer-Schönberger and Kenneth Cukier outline the consequences of the possibility to connect and analyze an almost endless stream of data. It is a very accessible book that will appeal to a large crowd. Conclusion: Big Data will permanently change the way we think, work and live. (Maven Publishing, € 22, in Dutch)
through, but thinks that it will lead to a revolution in the minds of the managers. He even compares big data to the invention of the microscope. Future decisions will no longer be based on suppositions and choices of a limited number of leaders. They can be taken on the basis of data, of factual information.
Cause and effect Going further, Cukier and Mayer-Schönberger point out another important change. In order to predict developments and to substantiate decisions, common practice at this moment is mainly the use of random samples. Because a limited amount of data is concerned, these random samples must be composed with extreme accuracy in order to have any value. Because of the huge amount of information available for analysis, research in Big Data does not have to be nearly as accurate to provide reliable conclusions. Even data that, at face value, does not appear to have any relevance can be included in the research. Big is beautiful, in this case: quantity leads to quality. Another
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essential difference with the world as we know it is that it is no longer crucial to know why something is the way it is. Big Data makes it possible to predict, on the basis of data analysis, that something is highly likely to be what it is. Causality becomes less important. We do not necessarily have to go looking for the cause when we know the effect.
4.4 million jobs The amount of data is increasing explosively. Take for instance sources like online search behavior, smartphones, applications, profiles and messages via social media. From a technological point of view, the storage and access of all this data hardly poses a problem. The key lies in the ability to create links by means of tools like analytical software and algorithms. Therefore, there will be a huge demand for researchers and analysts. Gartner predicts that in 2015, 4.4 million jobs will be created worldwide that are related to Big Data. Europe will account for almost a third of these jobs. However, the research agency expects that only one of three of these jobs can actually be filled. Privacy is another bottleneck. Linking and analysis can lead to discrimination. It may also cause conflicts with existing legislation and future European privacy regulations.
Strike gold These restrictions hardly affect the potential of Big Data. The opportunities abound not only from a social point of view like
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| number 1 | 2013
in the health care or the battle against crime, but also in the corporate world. The most obvious example is Google, where Big Data is the heart of the business. Initially, Google started only with data on search behavior. Later it used input via gmail, Android (bought in 2005) and YouTube (bought in 2006). All these sources supply Google with an enormous amount of data. These can be analyzed and turned into cash. Currently, revenues are generated primarily through the sale of advertisements, but the applications go a lot further. Other Big Data collectors have also struck gold.
Competitive edge But what is the impact of Big Data on “common� enterprises? A number of examples show the diversity of the potential added value. In some cases, the ability to apply data in a strategic manner will even be decisive for the continuation of an organization. In any case, it is true for almost all industries that Big Data can supply a competitive edge. Consider, however, that it is a new subject in the ICT research agency. Companies that are still busy exploring the possibilities of social media and mobile applications must prepare themselves for a next challenge. Experts are already announcing the next step: nanodata, in which information from the huge flow of data is used to zoom in on the individual customer. It never stops.
