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DIGITAL TRANSFORMATION IN THE FIELD Head of Mobile User Computing, Joanne Rose, on the technological and cultural measures keeping the business at the forefront
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FOREWORD
W
elcome to the October edition of Business Chief Europe.
This month’s cover star is international energy and services solutions company Centrica, which has been undergoing a radical digital transformation for its users in the field. This has, says Head of Mobile User Computing Joanne Rose, been underpinned by both innovative technological solutions as well as a significant cultural shift. The latter,
We take a trip to Paris and visit Le Royal Monceau – Raffles Paris, a stunning Parisian hotel that is dedicated to the very best and most dynamic culinary experiences – one to not read on an empty stomach – and we take a closer look at the operations of healthcare organisation, Brothers of Charity Services Ireland and Alacer Gold Corp, among others. Our City Focus this month takes
she explains, has been particularly
in London, specifically looking at
focused on gender and diversity
how tech companies are making
issues and as already led to some
the capital “a unique blend of talent,
“extraordinary” changes.
investment and innovation”.
Culture is also the focus of our leadership feature in this issue. We speak with Linda Aiello, Senior
Enjoy the issue. Amber
Vice President of International
amber.donovan-stevens
Employee Success at Salesforce,
@bizclikmedia.com
who tells us how the company has built a holistic, employee-led culture driven by technology and data.
e u r o p e . b u s i n e s s c h i e f. c o m
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CONTENTS
12 14
44 Employee centricity
32
Making a success of digital transformation
58
Airswift:
AUTOMATION AND HUMAN CENTRICITY IN RECRUITMENT
68 FIVE STEPS TOWARDS A MORE SUSTAINABLE SUPPLY CHAIN
78 City Focus
LONDON HOTELS IN EUROPE
90
CONTENTS
122 Brothers of Charity Services Ireland
106 Le Royal Monceau
132 El Al Israel Airlines
150
Alacer Gold Corp.
180 194 Kinross Gold Corporation
212 Zurich Insurance
Deloitte Consulting Belgium
228 Leumit HMO
240
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Centrica: 14
digital transformation in the field WRITTEN BY
WILLIAM SMITH PRODUCED BY
LEWIS VAUGHAN
OCTOBER 2019
15
e uro pe .busi ne ssc hief. com
CENTRICA
Centrica’s Head of Mobile User Computing, Joanne Rose, discusses the technological and cultural measures supporting digital transformation for users in the field
B
ritish energy multinational Centrica operates brands such as British Gas in the UK, Bord Gáis in Ireland and Direct Energy
in the US and Canada. Befitting its history, which 16
stretches back over 200 years, the company still maintains all of London’s gas lamps. Its technological credentials, however, are proven by such facets as its smart home subsidiary Hive. Employing around 31,000 people, part of its work as an energy service and supplier involves sending engineers to perform duties such as boiler repair and servicing, and smart meter installation. Joanne Rose, Head of Mobile User Computing at Centrica, is responsible for fulfilling the technological needs of teams in the field. That work is continuous, necessarily moving with the pace of technological change, as Rose explains. “We’ve transformed our field workforce digitally over the last 20 years. Currently, digital transformation for us is about continually making sure that our fieldworkers have got the most up-to-date technology and software. OCTOBER 2019
17
e uro pe .busi ne ssc hief. com
CENTRICA
“ Digital transformation for us is about continually making sure that our fieldworkers have got the most upto-date technology and software”
18
— Joanne Rose Head of Mobile User Computing Centrica
What we’re doing is setting the scene for our field workforce to be on the latest products and for them to be kept up-to-date.” To carry out that work, Rose has found the introduction of new IT systems invaluable. “We’ve rolled out Windows 10 right across the organisation. One of the reasons that Windows 10 has been so important is because we have the Evergreen solution behind it. We will never be too far behind the latest operating system version that Microsoft is providing.” That escape from incremental and periodic upgrades extends to Centrica’s embrace of cloud technologies such as Office 365. “We use OneDrive for file storage along with the Office 365 tools like Excel, Word, Teams and PowerPoint,” says Rose. “From a user experience point of view, that Office 365 rollout has really transformed Centrica. We have the full suite and we’re constantly adding new applications and features.” Centrica’s field workers have benefited in numerous ways, starting from the implementation of Centrica’s Windows 10 systems. “We have around 8,000 field users, and they were on
OCTOBER 2019
CLICK TO WATCH : ‘THE NATURE OF DIGITAL TRANSFORMATION AT CENTRICA’ 19 a mix of Windows 7 and Windows 8.1.
they’re geographically spread, they
Our largest workforce, our Service
suffer challenges in some remote parts
and Repair workforce, were on really
of the country where 4G is inacces-
old devices as well. The project was
sible. Those challenges all had to be
manifold because, concurrent with
taken into consideration.” Geographi-
the engineers’ laptops being replaced,
cal isolation brings challenges beyond
my team introduced a new operating
just connectivity, and technological
system alongside a brand new suite of
solutions are addressing these as well.
applications.” Compounding this chal-
“It’s very difficult to replace devices
lenging project was the nature of field
or enact a big IT upgrade because
work, with niche requirements in com-
our field workforce is truly field-based,
parison to desktop users. “They use
meaning they never come to a Centrica
a different VPN solution, and their con-
office and they don’t have regional de-
nectivity largely depends on the Voda-
pots. The technology they’re now using
fone network,” says Rose. “Because
means they can communicate with the e uro pe .busi ne ssc hief. com
Empowering your people to engage
Unleash your people to connect, collaborate, and innovate to transform your workplace and business. Evergreen Workplace Services from Fujitsu. Find out more about Digital Workplace at www.fujitsu.com
Empowering Centrica’s frontline We live in a world that demands flexibility and convenience and having a single work location is no longer the world we live in. A fantastic employee experience is key to the success of the modern business, and to achieve this, Centrica partnered with Fujitsu to transform and deliver their Digital Workplace. The transformation embraced Windows
“The replacement of legacy devices was a crucial first step to enable employees to benefit from a new integrated, evergreen enduser service”
10, Azure, Office 365 and Fujitsu’s digital hybrid offering – on-premise and Cloud – for end user IT services, allowing 31,000 global
has provided Centrica’s employees with
employees, including 8,000 field engineers,
a new lease of flexible working, which in to-
to collaborate and be productive on a glob-
day’s ‘the workplace is everywhere’ is essen-
al scale. The result is that every employee,
tial for employee satisfaction and wellbeing
from office, home or field has equal access
– supporting all types of people in Centrica’s
to services. The new workplace is also
diverse workforce; with increased mobility
future proofed against the fast-moving pace
and effectiveness, while increasing employ-
of technology by being evergreen, so em-
ees’ ability to deliver great customer service.
ployees can always benefit from the latest
The replacement of the legacy devices
innovations and features. Services are now available from any de-
was a crucial first step to enable employees to benefit from the new integrated, ever-
vice, increasing employee engagement, as
green end-user service, and by working
users are able to have the same, up-to-date
hand in hand with Centrica, and partnering
experience, in the office and field, as they
with Panasonic, Fujitsu procured, built and
do at home on their personal devices. This
led the deployment of 8,000 rugged and robust devices to Centrica’s team of field engineers so that they can now deliver an improved customer experience. Alongside this, we have reduced the cost to serve, a key component of Centrica’s Digital Strategy. The outcome of the collaboration is a foundation for being able to add digital capabilities to improve engineers First Time Fix rates, resulting in great customer satisfaction and increased field productivity.
CENTRICA
CLICK TO WATCH : ‘CENTRICA: FIELD-SUITABLE HARDWARE FROM PANASONIC AND FUJITSU’ 22
whole of Centrica using Yammer,” says
amazing thing about the Microsoft tools
Rose. “Yammer is Microsoft’s enter-
that we’re using is accessibility. For
prise social media tool, and we have,
engineers or employees with disabili-
for instance, particular groups that
ties across Centrica, those Microsoft
relate to their laptops. My team moni-
tools provide a lot of extra functional-
tor the relevant groups and contact
ity. If you are dyslexic, for instance, you
the engineers to get more information
can change the setup to make it more
about trending problems.”
friendly to you. Subtitles are available
A critical partner of Centrica’s on-
for live meetings if you’re hard of hear-
going digital transformation has been
ing, and if you’re visually impaired you
Microsoft which, aside from the afore-
can change the technology to work
mentioned Windows 10, Office 365
better for you.” On the hardware side,
and Yammer, has also provided tools
Panasonic has been vital to field work
to ensure access to its services. “An
at Centrica, providing laptops and
OCTOBER 2019
more. “Panasonic has been a Centrica technology partner for more than 20 years. I’ve worked with them practically all of that time, and they are an extremely supportive supplier. They have helped us to understand the technology that they’re introducing as they refresh their current models, particularly during our latest project where we rolled out about 6,000 Panasonic TOUGHBOOK G1 devices to the field. We always work very closely with Panasonic when we’re doing our device selections.” Providing the tailored builds to operate successfully in the
“ Where we’re implementing new technology, we make sure that users are happy with it and really understand it before it gets deployed” — Joanne Rose Head of Mobile User Computing Centrica
field was Fujitsu. “We worked closely
E XE CU T I VE PRO FI LE
Joanne Rose Joanne is Centrica’s Head of Mobile User Computing. She’s passionate about supporting Centrica’s field-based employees. Joanne leads a high performing team that have ensured that the field-based employees have the best technology available to them. She’s also an active campaigner for gender diversity in her organisation and an energetic member of the Centrica Women’s Network.
e uro pe .busi ne ssc hief. com
23
CENTRICA
“ The most important 24
thing for us is to be able to keep our estate Evergreen” — Joanne Rose Head of Mobile User Computing Centrica
OCTOBER 2019
25
e uro pe .busi ne ssc hief. com
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CLICK TO WATCH : ‘CENTRICA: HOW THE CLOUD AIDS COMMUNICATION AND ACCESSIBILITY’ 27 with Fujitsu to make sure that the Win-
hugely important to him and his strat-
dows 10 build that we were deploying
egy, so in sponsorship terms there’s
to our field workforce was the best that
never been an issue.” Care was taken
it could be and met the different needs
to ensure the field workforce was on
of field users. That planning stage was
board and engaged with the introduc-
vital, and what they delivered really
tion of new technologies. “We made
worked for the field.”
sure there was a pilot group which was
With the change in technology there
able to trial devices and get first looks
was a parallel need to ensure that it
at the software,” says Rose. “Where
could be integrated culturally in different
we’re implementing new technology,
parts of Centrica. Rose found the ap-
we make sure that users are happy with
petite for digital transformation came
it and really understand it before it gets
from the highest levels. “The approval
deployed.” For the wider company,
came from the top and our CIO, Mike
programmes are in place to spread the
Young. Digital transformation has been
message and ensure understanding of e uro pe .busi ne ssc hief. com
CENTRICA
new technologies. “One of the things that we’ve introduced at Centrica is a community called the Digital Champions Network, and we have 600 digital champions that help with the adoption of new Office 365 technology throughout the company.” As much as it was important to ensure the right culture was in place to profit from digital transformation, Rose is passionate about the need for a culture shift surrounding issues of diversity. “I’m a strong voice in Centrica when it 28
comes to talking about women and diversity issues. I am on the Centrica Women’s Network working group and I head up the local chapter here at the office. It’s a really exciting network and it’s grown significantly, particularly over the last year. We’re working a lot more closely with our Diversity and Inclusion team, so that the strategy of Centrica’s Women’s Network is supporting the strategy of our Diversity and Inclusion team. We have a committee and we organise events in our own location, whether it’s career development sessions or presentation skills courses. We celebrate International Women’s Day and we’ve done events OCTOBER 2019
for that which have generated awareness around the issues that women face in the workplace. My chapter has set up a mentoring scheme for women. We set it up around nine months ago, and we had a review session just a few months back. The impact that the mentoring scheme has had on the women participating has been astounding. It’s not that we’re saying every woman should be promoted – it’s more that every woman should be the best that they can be, and the changes that we’ve seen in these women, and the changes and differences that they’re making to our local office, has been amazing. Those kinds of things have been extraordinary to see and they’re really making a difference.” The perennial nature of digital transformation at Centrica sees a number of projects in the pipeline. “We’re speeding up how we deploy updates into our field workforce. There’s a project going on with Microsoft at the moment using the DevOps model and Microsoft Store for Business. We’re working with our local application teams so that, when fixes to current issues are identified, it’s days before e uro pe .busi ne ssc hief. com
29
CENTRICA
30
“ The changes that we’ve seen in these women, and the changes and differences that they’re making to our local office, has been amazing” — Joanne Rose Head of Mobile User Computing Centrica
OCTOBER 2019
they get out to the workforce rather than weeks. It’s vital to us that our engineers aren’t falling behind on patches and operating system updates – both for the sake of security and feature updates that they bring. We’re working with our partner Fujitsu to make sure that we can keep those devices and our workforce in that Evergreen state. We’re looking at BT Pinhole technology where we will be using the BT wifi network as an alternative to the 4G network, and Fujitsu are on board and very supportive with this. The most important thing for us is to be able to keep our estate Evergreen.” With the digital innovations implemented by Rose and her team, Centrica’s field workers can perform their crucial role with confidence in the technology they use.
e uro pe .busi ne ssc hief. com
31
LEADERSHIP
32
Employee centricity Linda Aiello, Senior Vice President, International Employee Success at Salesforce, shares how the company has built a holistic employee-led culture while using technology and data to support its approach WRITTEN BY
AMBER DONOVAN-STEVENS
OCTOBER 2019
33
e uro pe .busi ne ssc hief. com
LEADERSHIP
L
inda Aiello has held the role of Senior Vice President, International Employee Success at Salesforce for
three years. Before her rise to this position, she had been a Salesforce customer on behalf of companies such as LVMH and Uber. She says that one of the draws to the company was her younger brother, who has worked for the Salesforce since 2007. Through him she has witnessed the company’s evolution and, while she admits that she had “high expectations,” she says that they have all been exceeded.
34
According to Aiello, Salesforce’s values have remained consistent from the company’s inception: “Marc Benioff wanted to create a product that changed the way the world did business, and how he could improve the state of the world.”
CULTURE Aiello explains that the company is built on four core values: trust, which highlights transparency and employee satisfaction; customer success, defined by how Salesforce builds KPIs that drive customer success while adding value for the company; innovation to try and find new ways to improve the employee experience; and equality, or “working to make both the OCTOBER 2019
35
“ Culture is our greatest competitive advantage” — Linda Aiello, Senior Vice President, International Employee Success, Salesforce e uro pe .busi ne ssc hief. com
LEADERSHIP
“ The number of jobs Salesforce is driving in the ecosystem is astronomical” — Linda Aiello, Senior Vice President, International Employee Success, Salesforce
company and the world a more equal place.” According to Aiello, Benioff has always said that “the business of business is to make the world a better place.” She adds that all of these values are centralised on the Hawaiian concept of ‘Ohana,’ which means family. “It’s not necessarily the family you are born into, but it’s your coworkers, the community, the customers, partners, and so on, the idea that no one is left behind and we all support one another.” This support starts from recruitment through to
36
further career progression with Salesforce. “There is a level of personalisation for each employee,” explains Aiello. “We’re always using the data that we get from our own platform, and reincorporating it into our employees’ experiences.” One of the ways in which technology has allowed the company to better appeal to employees and potential recruits is through cloud marketing. “If they see something relating to Salesforce on LinkedIn, for example, we are able to track the popularity of our posts and this allows us to better target our message.” OCTOBER 2019
CLICK TO WATCH : ‘ATTRACTING DIVERSE TALENT – NIAS’18 PANEL WITH LINDA AIELLO, SALESFORCE’ 37
FLEXIBLE WORKING
expectations of the employee on the
Aiello says that Salesforce is constantly
inside world. When an employee can
asking itself: “How do we remove friction
access a seamless experience from
at every single point of an employee’s
other companies to improve day—to—
experience to allow them to do their best
day life, we as a company need to
work?” From this, the company has
ensure that we’re also as app-centric
strived to create as much flexibility as
and seamless as we can be.” Aiello
possible for employees. One of the ways
also refers to trends such as voice
in which this has needed to be achieved
recognition, which has been
was for Salesforce to meet the
incorporated into its employee app
technology standards external to the
so an employee can record important
company. “With the constant evolution
information, update team members
of technology, the employee experience
and send calendar invites more
has also changed. The expectations
promptly. “We try to implement time
from the outside world heighten the
saving services so that our e uro pe .busi ne ssc hief. com
LEADERSHIP
employees have more time for themselves or their customers,” she says. While Salesforce has met the desire for flexibility, it has also ensured that these needs are being met in a way that is culturally appropriate to its values, as well as approved by employees. This has been achieved through an open debate on the ethical use of technology, a concern raised initially by employees. “Technology itself is not good or bad; it’s how people choose to use it.” As a result, a 38
discussion opened on the topic, welcoming employees at all levels of the company to speak with Benioff and other C-level executives to discuss the issue. “Following these discussions, we started the office of ethical and humane use, which specialised in creating a set of principles around the ethical use of technology, and safeguarding human rights and data privacy.” The office consists of Salesforce staff and experts external to the company who can provide guidance on how the company uses technology for both employees and customers going forward.
OCTOBER 2019
“ How do we remove friction at every single point of an employee’s experience to allow them to do their best work?” — Linda Aiello, Senior Vice President, International Employee Success, Salesforce
TRAINING OPPORTUNITIES When addressing the need for upskilling, Aiello asks: “How can we provide the best environment to re-skill and grow our employees with the understanding that the world is changing rapidly?” As there are many jobs that don’t yet exist in this sector, she notes the importance of inspiring curiosity and driving employees to consistently improve their knowledge. After all, their careers may take a path that is yet to exist. Salesforce is not only focused on upskilling internally, e uro pe .busi ne ssc hief. com
39
LEADERSHIP
40
but also externally, as so many
This software aims to make tasks that
companies leverage its technology.
may otherwise be considered arduous,
“The number of jobs Salesforce
more engaging. The platform is
is driving in the ecosystem is
accessible to those working within or
astronomical.” To be sure, it is
remote to the office, providing an equal
estimated that there will be over
opportunity for all to grow and develop
800,000 tech-related jobs unfilled by
their knowledge while maintaining
2020, according to research published
flexibility to the work. “We made a
by policy group Coalition for a Digital
pledge this year in May that, by 2022,
Economy (COADEC). “To support the
we’re going to help train and re-skill
training of employees, we have access
250,000 people across Europe
to a platform called myTrailhead.”
towards a Salesforce certification.”
OCTOBER 2019
41
MOVING FORWARD
positive feedback has reaffirmed this.
“As industries across the world move
As Aiello continues to help lead Salesforce
forward, employees want more from
in this direction, it is undoubted that it will
their employers. Culture is our greatest
only continue to generate an exemplary
competitive advantage,” enthuses Aiello.
employee experience.
“As Salesforce develops, Aiello shares that the company will continue to drive to create a sense of belonging for its employees. “One of our longer-term priorities is that of psychological safety.” She adds that, following the launch of the app, the increase in e uro pe .busi ne ssc hief. com
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TECHNOLOGY
44
MAKING A SUCCESS OF DIGITAL TRANSFORMATION Nancy Hammervik, Executive Vice President, Industry Relations at IT trade association CompTIA, discusses the work the organisation does to enable digital transformation WRITTEN BY
OCTOBER 2019
MARCUS LAWRENCE
45
e uro pe .busi ne ssc hief. com
TECHNOLOGY
T
ell us a bit about yourself and your role as Executive Vice President of Industry Relations at CompTIA.
I have been in the tech industry for nearly 35 years, starting on the media side (selling advertising, sponsorships, and staging events around the world that bring vendors, distributors and partners together). Eight and a half years ago, I joined CompTIA as Executive Vice President, Industry Relations. A big part of my role is managing our
46
membership programme, providing value to members to both grow their businesses and have a positive impact on the industry. I am responsible for growing our membership numbers, member engagement and value, and expanding our reach and relevance in the tech ecosystem. CompTIA has 10 member-led communities (in vertical markets like Managed Services and Security, demographic markets like Advancing Women in Tech and Future Leaders, and geographic markets like the UK and Benelux) and five industry advisory councils that serve as the headlights for our organisation and industry. The part of my role that I enjoy the most is providing members with the tools and resources they need to stay relevant in a fast paced, evolving industry while harnessing the power of our OCTOBER 2019
“YOUR TEAM SHOULD BE AS DIVERSE AS YOUR CUSTOMER BASE” — Nancy Hammervik, Executive Vice President, Industry Relations, CompTIA
47
membership to be true advocates for the industry and its workforce, driving the adoption of emerging technologies and having a positive, palpable impact on the business of tech. In your own words, what does CompTIA offer firms around the world with regards to enabling successful digital transformations? CompTIA’s mission is to advance the adoption of technology and the growth of the tech industry. That’s why we offer an unparalleled selection e uro pe .busi ne ssc hief. com
TECHNOLOGY
of resources related to digital trans-
sharing. We offer industry leading,
formation and other tech topics.
vendor-neutral skills training and skills
The vast majority of these resources
validation. CompTIA is the largest
– greater than 90% – are available at
provider of vendor-neutral skills
no cost, whether you are a dues-pay-
certifications for technology
ing member of the association or not.
professionals around the world.
We have comprehensive, world-
48
When compared to other organisa-
class research reports and staff, how-
tions, what makes CompTIA unique
to guides, whitepapers, and other
is our member communities. As men-
educational materials developed with
tioned, we offer member-led commu-
the collective expertise of thousands
nities across a variety of markets, all in
of IT professionals and executives
the business of influencing and ena-
around the world. We also have webinars,
bling digital environments for them-
podcasts, conference sessions, semi-
selves and their clients. We hear all the
nars and networking forums that offer
time that these communities offer a
peer-to-peer insight and best practice
trusted, safe haven where all players
OCTOBER 2019
CLICK TO WATCH : ‘LAUNCH YOUR CAREER WITH COMPTIA CERTIFICATIONS’
in the ecosystem can gather and learn
world do to ensure they can capitalise
from each other.
on the opportunities afforded by
Our UK Channel Community has
upcoming and ascendant solutions?
750 members. They meet face-to-
A great starting point for any organi-
face at least three times a year to
sation – large enterprise, mid-sized
share strategies and best practices,
firm or small business – is to inspire
and members have built such strong
and invest in their employees with
relationships that they can rely on
ongoing skills training. Encourage
each other throughout the year as a
staff to join CompTIA, even at the free,
resource to grow their businesses.
registered user level, to stay close to industry trends and dynamics and
Based on the recent CompTIA Top
make important contacts they that can
10 Emerging Technologies report,
build a solid network from. Attending
what can enterprises around the
industry events, conferences, and e uro pe .busi ne ssc hief. com
49
TECHNOLOGY
other meet-ups in the industry is invaluable when it comes to being in the know and being prepared. Second, invest in updating infrastructure. All emerging technologies will need sound and secure platforms and systems. Third, make sure everyone in the organisation is on board with moving forward. Build a culture conducive to change and progress. Articulate the benefits of automating processes, saving dollars, operating more efficiently, and recognise and reward 50
“TECHNOLOGY IS DRIVING ALL BUSINESSES, INDUSTRIES AND GOVERNMENTS” — Nancy Hammervik, Executive Vice President, Industry Relations, CompTIA
efforts. Bring on external partners, business and technology consultants, and leverage their expertise. Make sure to bring line of business managers
you serve, and the short and long-
into the process.
term goals you have for business
Build diversity into your staff. Your
growth. Equipped with these insights,
team should be as diverse as your
a technology provider can make
customer base. Seek new and diverse
informed recommendations on the
perspectives and experiences to
technology options that make the
foster a culture of innovation.
most sense for a business, today
Finally, when it comes to innovation
and into the future.
and new and emerging technologies, consult with your trusted technology
Aside from the tech mentioned in
partners. The best tech partners are
the Top 10 report, what do you view
the ones that truly understand your
as the most influential established
business – the products or services
technologies at present?
you sell, the customers and markets
For me it’s all about IoT and Big Data –
OCTOBER 2019
51
capturing data and building programs
automate your shopping experiences
to analyse the data can have a tre-
and allow home healthcare solutions.
mendous impact on both businesses
Managing fleets of trucks and trains
and consumers. While IoT and Big
more efficiently can allow us to reduce
Data are improving businesses and
our carbon footprint, and smart buildings
lives, they are also solving world
in a city can help to better manage
problems. Having insight on your
renewable resources.
operations, workflow and customers
I met a young lady at a conference
– and doing something with it – can be
last week who invented the world’s
the catalyst for cost savings, improving
first smart white cane for the blind
efficiency, mitigating risk, maximising
and sight impaired, which allows them
sales and driving new revenue.
to have a greater understanding and
For consumers, IoT can monitor and regulate the climate of your environment,
control of their environment. With the cane collecting data on the user’s gait e uro pe .busi ne ssc hief. com
TECHNOLOGY
and centre of balance, the development
global security market for IoT alone
team realised it could also be used by
is a £30bn market. Small and medium
the frail and elderly to help predict and
businesses (SMBs) are still relatively
avoid a traumatic fall three weeks
unaware and unprepared for the level
before it happens. The implications
of security that should be protecting
for healthcare and quality of life are
their – and their customers’ – security.
tremendous.
Working with a professional consultant or service provider is recommended.
In a general sense, what are the
52
We are also dealing with significant
most significant challenges facing
workforce skills gaps. In Q2 2019
a successful digital transformation?
employers across the UK were seeking
Security and the workforce. With mul-
to fill more than 140,000 core IT job
tiple components and “access points”
openings. That represented 9% of all
in every advanced digital solution, the
UK job postings in the quarter.
need for comprehensive and advanced security solutions is imperative. The
OCTOBER 2019
Not only do we have skills gaps, we have a confidence gap where many of
the next generation do not see them-
In general, most small businesses,
selves in a technology role. As we
across all industries, are lagging.
continue to introduce new technologies,
Without the internal skill and talent to
we create new roles – like data scien-
deploy and implement a digital strategy,
tists, drone service providers, AI
they are left to collaborate with external
ethics leads and more. CompTIA is
partners, business and technology
focused on building programs that will
consultants. While there are many
encourage, train and certify the next
solutions and service providers available
generation of the workplace. Digital
to support them, many of them are
transformation is defining the
small businesses themselves and on
business of the future.
the long tail of the learning curve. We are seeing the greatest advances
Are there any particular industries
at the enterprise level being deployed
that appear to be lagging in terms
by larger system integrators and
of technological implementation/
global consultants. CompTIA is working
innovation?
hard to equip smaller solution providers with the insight, education, tools and resources needed to drive the adoption
“THE BEST TECH PARTNERS ARE THE ONES WHO TRULY UNDERSTAND YOUR BUSINESS” — Nancy Hammervik, Executive Vice President, Industry Relations, CompTIA
of emerging technologies into the SMB. We are also focused on building the tech workforce through education, training and certification so more companies can staff and skill up with relevant talent. In your view, which industries are leading the charge with the most successful digital transformations? Digital transformation has taken hold in virtually every industry, but there are clear distinctions in the degrees and e uro pe .busi ne ssc hief. com
53
TECHNOLOGY
pace that different industries are embracing these changes. The advances in healthcare have been tremendous. The use of electronic health records got off to a relatively slow start, but the pace of adoption has increased in recent years. Digital records help contribute to better care and treatment, especially as patients see multiple doctors or are transferred to different care units or facilities. Care givers have instant access to the latest patient information, delivered in a way that’s more secure and allows 54
for better data organisation. Another digital innovation that’s taking hold is wearable technology, from Fitbit and similar devices that allow patients to monitor and record their daily activities to more advanced technologies for realtime monitoring of symptoms and vitals, medication reminders and status reports for medical staff. From hospital mattresses that measure and manage the patient’s vitals, through to robotic surgeries, insightful patient portals and AI-empowered diagnostics, the healthcare industry has been revolutionised by digital transformation. Retail is also pushing forward quickly with customer-centric data management, OCTOBER 2019
IoT store cameras managing inventory and shopping patterns, and enhanced security solutions managing mobile payments. McKinsey forecasts the retail IoT market will hit £28.6bn this year, with healthcare coming in at £130bn. Cloud computing, analytics and robotics are among the most innovative digital tools revamping the core of banking and finance. People have financial management at their fingertips via mobile banking apps, smart ATMs, virtual assistants and chatbots, and internet-based virtual banks. To whatever extent, technology is driving all businesses, industries and governments. Whether it be hospitality, back office, construction or even agriculture, the use of technology, along with the internal staff and/or external teams to develop and manage it, is quickly becoming the single most compelling factor contributing to an organisation’s ability to compete, provide value, grow and succeed.
e uro pe .busi ne ssc hief. com
55
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PEOPLE
Airswift: 58
AUTOMATION AND HUMAN CENTRICITY IN RECRUITMENT Business Chief talks to Janette Marx, CEO of Airswift, about the effects of digital transformation on recruitment and retention, and what the future holds WRITTEN BY
HARRY MENEAR
© Albert Robida / Wikimedia Commons OCTOBER 2019
59
e uro pe .busi ne ssc hief. com
PEOPLE
I
n 1899, French artist Jean-Marc Côté was among a team of illustrators commissioned to create a series of drawings to commemorate the 1900 world’s fair in Paris. The series,
originally printed as inserts for cigar boxes (and
then later reprinted, but never sold, as postcards – science fiction author Isaac Asimov reportedly owned the only surviving set) took the artists’ best guess at how technology would change our lives by the advent of the 21st century. The subject matter of En L'An 2000 is, for 60
the most part, spectacularly off the mark. Firefighters battle flames while flying through the air on bat wings, deep sea divers ride giant seahorses through the ocean and students have the contents of history books transferred directly into their brains via psychic helmets. Endearingly hopeful and bizarre, Côté and his fellow artists’ work does betray just how hard it is to predict where the next wave of technological developments will take us. In 1995, renowned astronomer and author Clifford Stoll wrote in an article for Newsweek that “the truth is no online database will replace your daily newspaper, no CD-ROM can take the place of a competent teacher and no computer network will change the way government works.” He also vociferously argued that there OCTOBER 2019
61
© Jean-Marc Côté / Villemard / Wikimedia Commons
was no such thing as a future where people would buy things over the internet, or read books and magazines online. “Discount the fawning technoburble about virtual communities,” he continued. “Computers and networks isolate us from one another. A network chat line is a limp substitute for meeting friends over coffee.” seventeen years after the article’s publication, Newsweek became an exclusively e uro pe .busi ne ssc hief. com
PEOPLE
“ THERE IS A LOT OF AUTOMATION IN SOURCING NOW… THE PIECE THAT’S OFTEN MISSING IS THE PERSONAL TOUCH” — Janette Marx, CEO, Airswift
tion (and digitalisation in general) only highlights the continued need for the human element in business. “There is a lot of automation in sourcing now, a lot of technology that companies use within their applicant tracking systems to interact with people applying for jobs, and engage with them via automated responses,” says Janette Marx, CEO of Airswift.
62
online publication. Obviously, the future
“The piece that's often missing is the
is not something to be predicted lightly.
personal touch.” Founded in 1979,
However, one or two predictions
Airswift is an international workforce
made by En L'An 2000 came partly
solutions provider within the energy,
true. Several of the illustrations por-
process and infrastructure industries.
tray a world in which a single worker
Headquartered in Houston, Texas,
sits, comfortably pushing buttons, as
the company has operations in 71
automated machinery does the work
countries with 58 office locations, and
of a dozen laborers. In this respect, at
employs 700 staff and 6,800 contractors.
least, Côté was entirely on the money.
“We're specialists in industries where
Automation has completely changed
companies, no matter what country
the way in which people work, reaching
they're in around the world, have the
further and further into aspects of our
challenge of trying to source the right
jobs and changing the culture of work
talent,” Marx explains. “We're not only
forever. While organisations like the
experts in identifying the right talent for
Office for National Statistics predict
our clients, but also experts in mobilis-
that, in the UK, as many as 1.5mn jobs
ing that talent wherever it’s needed.
are at risk of being eliminated by auto-
Whether it's locally, nationally or glob-
mation, a greater number of thought
ally, we do everything from making
leaders believe that increased automa-
sure people have a place to live, feel
OCTOBER 2019
CLICK TO WATCH : ‘OPPORTUNITIES WITH AIRSWIFT IN MOZAMBIQUE’ 63 that they are welcomed into a new
interaction between employer and
country and understand the culture,
future employee,” she says. “From a
to helping find schools for their kids.”
sourcing point of view, the medium
Airswift partners with some of the
has changed so much, from ads in the
largest companies around the world to
newspaper to online job boards to the
solve talent sourcing, recruitment and
invention of LinkedIn and so on. There
retention challenges in any number of
are a lot of different ways to attract
new and existing markets. In terms of
candidates to different companies.”
the ability to comment on the effect of
The increased digitalisation of the
digital transformation and innovation
recruitment space, according to Marx,
on the modern workforce, few are
has radically altered the size of the net
in a better position than Marx. “The
that companies can cast. This is where
biggest change in the talent sourcing
automation becomes so important.
world is, if you take a step back, how
“We can use chatbots and other types
digital transformation will change the
of automation to make sure that we're e uro pe .busi ne ssc hief. com
PEOPLE
reaching the right audience. There are companies using chatbots to prescreen candidates to make sure they are qualified before doing an actual interview,” elaborates Marx. “It's really broken down a lot of barriers and globalised our outlook, especially if the skill you’re sourcing is niche, specific or hard to find.” However, at the heart of recruitment is still the human relationship. “When a person decides to leave a job to go to another job, that's a really big 64
decision. Facilitating and navigating the thought process surrounding that
© Jean-Marc Côté / Wikimedia Commons
change is where real recruiters come in to help connect the dots between the employer and the job seeker,” Marx
especially with where the unemploy-
explains. “The digital world is coming
ment levels sit around the world right
into it, but you still need a human ele-
now,” she says. “There are a lot of
ment in the recruitment process.”
measures companies can take to
Digital transformation is not only
increase their retention and employee
changing the way that companies
engagement, to really train and
attract talent. Marx notes that, as the
develop their people.” More and more,
human capital space is increasingly
Marx finds, career progression is the
reshaped by the accelerating pace of
number one reason people switch
innovation, the strategies and values
jobs, with opportunities for training and
companies use to retain their talent are
development coming a close second.
becoming increasingly people–centric.
The global workforce is as aware of
“Retention is a really important piece,
the pace of change as anyone, and
OCTOBER 2019
“ THE TRUTH IS: NO ONLINE DATABASE WILL REPLACE YOUR DAILY NEWSPAPER, NO CD-ROM CAN TAKE THE PLACE OF A COMPETENT TEACHER AND NO COMPUTER NETWORK WILL CHANGE THE WAY GOVERNMENT WORKS” — Clifford Stoll, (Newsweek, 1995)
65
prioritises personal development in
the technology will support that overall
order to keep up.
experience,” she enthuses. “I can’t wait
In the same way that Côté and
to see where the next five years take us,
Stoll struggled to accurately envision
particularly in terms of communications.
where technology would take human-
It would be nice to have holograms,”
ity, the next five to 10 years are a time
she says, somewhat wistfully.
shrouded in mystery, brimming with the possibility of rapid advancements and new challenges to face. Marx herself is filled with optimism. “The future is going to be really, really interesting with regard to how we balance human interaction with technology and how e uro pe .busi ne ssc hief. com
22ND - 23RD OCTOBER 2019 BUSINESS DESIGN CENTRE, LONDON #SMARTHOMESUMMIT2019
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Shane Larkin - Chief Commercial Officer, company: Neos
Patrice Slupowski - SVP Digital Innovation, company: Orange
Jeremy Smyth - General Manager B2B, company: Netatmo
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S U S TA I N A B I L I T Y
68
FIVE STEPS TOWARDS A MORE SUSTAINABLE SUPPLY CHAIN John Perry, Managing Director at SCALA, a leading provider of management services for the supply chain and logistics sector, shares the processes businesses should undertake to become more sustainable WRITTEN BY
JOHN PERRY
OCTOBER 2019
69
e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
70
S
ustainability is becoming
their supply chains are as sustainable
increasingly crucial to both con-
as possible – the question is, how?
sumers and key stakeholders
alike, with research from Unilever find-
DEVELOPING A BUSINESS CASE
ing that one in three consumers now
The first step towards achieving a
choose brands based on their social
more sustainable supply chain is to
and environmental credentials. This,
build the business case for action.
combined with the UK having recently
This will help to identify the highest
become the first major economy in
priority supply chain issues for the
the world to legally commit to net-zero
company, evaluate opportunities and
emissions by 2050, means that busi-
risks, and build the internal support
nesses are now having to ensure that
needed to move forward.
OCTOBER 2019
71
The business case for a particular
reducing the costs of material inputs,
company depends on a variety of
energy and transportation, increas-
issues, including: industry sector,
ing labour productivity, and fostering
supply chain footprint, stakeholder
growth by meeting evolving customer
expectations, business strategy and
and business partner requirements.
organisational culture. However, in most cases, supply chain sustainability
ESTABLISHING A VISION
offers a number of significant benefits.
Once the business case has been suc-
This can include minimising business
cessfully put forward, it’s important
disruption from environmental, social
to then establish a clear vision for the
and economic impacts, protecting a
company’s sustainable supply chain
company’s reputation and brand value,
programme. Defining the objectives at e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
“ A key element of supply chain sustainability is efficiency” — John Perry, Managing Director, SCALA
the outset of the project will prove invaluable when it comes to devising the strategy. Having a vision in place also makes it easier to evaluate the success of the programme and identify areas for continued improvement. In order to ensure full support from the business’s senior executives, which will be crucial for success, they should be actively involved throughout the creation of the vision. In addition to the c-suite, representatives from across the business including sales, marketing, finance, IT systems, manufacturing and
72
procurement should be consulted, as each of these functions will have a role to play in the implementation of the sustainable supply chain programme.
STRATEGIC PLANNING A key element of supply chain sustainability is efficiency, which is best achieved through careful planning. Sophisticated digital modelling tools can provide end-to-end supply chain perspective, enabling businesses to pinpoint inefficiencies and design a more sustainable supply chain and logistics network going forward. By assessing all potential options OCTOBER 2019
CLICK TO WATCH : ‘CATHERINE WEETMAN - FUTURE-FIT LOGISTICS’ 73
and analysing a range of future ‘what
network, and reduce emissions by
if’ scenarios, companies can ensure
directing inventory to serve demand.
not only that their supply chain and logistics networks are resilient to
SOURCING RESPONSIBLY
future changes, but also that they can
While it’s impossible for businesses
benefit both the environment and their
to fully control the practices of every
bottom line by eliminating wastage
third party they deal with in their supply
and overspending.
chain, they should work to ensure that
For example, modelling software can
wherever possible they only partner
help supply chain professionals to min-
with companies that share the same
imise physical space used by identify-
goals, sustainability values, and envi-
ing redundant facilities or opportunities
ronmentally-conscious supply chain
to rebalance storage, avoid empty
processes as themselves.
miles by analysing their transportation
Customers will ultimately hold the e uro pe .busi ne ssc hief. com
S U S TA I N A B I L I T Y
businesses they interact with directly accountable for the products or services that are delivered. So, if it is discovered that products contain parts manufactured unsustainably that have come from an external supplier, it won’t be the supplier that faces the backlash and suffers the consequences. Qualifying the right sourcing partners is a critical piece of the sustainability puzzle, and it requires businesses to enforce the same high sustainability standards to which they hold them74
selves. Establishing and communicating expectations through a supplier code of conduct is an effective way for businesses to involve suppliers in their sustainability efforts.
whether their fleet’s size, type and geographic spread remains optimal,
OPTIMISING DISTRIBUTION
whether their distribution centres are
When looking to improve sustainability,
in the right places, whether customer
logistics is one of the areas where the
order profiles and delivery require-
biggest difference can be made. With
ments have changed since the original
a large number of vehicles moving high
transport operation was designed,
volumes of goods to diverse and dis-
and whether a dedicated transport
persed locations, there is a significant
operation is even still needed, or if
risk of inefficiency when it comes to
it could be more economical and
transport operations.
environmentally-friendly.
In order to optimise their logistics network, businesses should look at OCTOBER 2019
This will not only help to ensure that the supply chain can operate as
“ Businesses are now having to ensure that their supply chains are as sustainable as possible” — John Perry, Managing Director, SCALA
75
smoothly as possible, but also reduce empty miles and carbon emissions, which has a significant positive effect on a business’s environmental impact. In addition to helping the environment and satisfying public demand for ethical and environmentally sound business practices, sustainability can drive significant business value both now and long into the future.
e uro pe .busi ne ssc hief. com
IN ASSOCIATION WITH
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CITY FOCUS
LOND City Focus
78
Business Chief Europe looks at London’s tech world and how the NHS is implementing innovative AI technology in healthcare WRITTEN BY
OCTOBER 2019
GEORGIA WILSON
DON e uro pe .busi ne ssc hief. com
79
CITY FOCUS | LONDON
L
ondon, “A unique blend of talent, investment and innovation” – London and Partners. In 2018, digital
technology saw a turnover of £64.11bn
($US78.24bn), employed 263,000 people and ranked highest in the UK for investors in technology. With 51,690 digital tech businesses and a growth rate of 56% for tech startups, London is one of the world’s leading technology hubs. In the last 10 years alone, technological advancements have been exponential. 80
Technology we couldn’t live without today such as the Cloud, chatbots, online streaming and Uber didn’t exist. Even GPS on phones wasn’t widely available back in 2009. Today, technology continues to advance at an intense rate, in particular artificial intelligence (AI). Such advancements include the cloud, practical augmented reality, machine learning, AI robotic bars and self-driving cars. In addition, AI as an industry has also advanced significantly. As of 2018, London has four AI universities in the world’s top 40, 645 AI company headquarters and has received the highest VC funding in Europe for AI of £1.8bn ($US2.2bn) all of which continue to strengthen the city’s strong global position for AI. OCTOBER 2019
81
e uro pe .busi ne ssc hief. com
CITY FOCUS | LONDON
‘With a vision of being a world leader in AI and machine learning within five years, the NHS is fully committed to innovative development of AI’
Looking into specific industries, a key sector that has seen a widespread of innovative AI technology introduced into its field in the last couple of years is healthcare – in particular, the NHS. With a vision of being a world leader in AI and machine learning within five years, the NHS is fully committed to innovative development of AI.
RECENT NHS TRIALS FOR AI TECHNOLOGY In August 2019, the NHS announced a £250mn ($US305mn) government investment to create a national AI labo-
82
ratory focused on enhancing patient
OCTOBER 2019
CLICK TO WATCH : ‘INTRODUCTION TO HEARTFLOW (UK)’ 83
care and research, specifically for
records from 22,000 appointments
cancer, dementia and heart disease.
for MRI scans. The algorithm suc-
Other recent trails carried out by
cessfully identified 90% of the people
the NHS include collaboration with
who are most likely not to attend their
London based organisations such as:
appointment. “On average we estimate
University College London Hospitals
this could save £2-3 per appointment,”
(UCLH), Microsoft, HeartFlow and
says National Hospital for Neurology
King’s College London.
and Neurosurgery (NHNN) consultant, Parashkev Nachev.
UNIVERSITY COLLEGE LONDON HOSPITALS (UCLH)
Hancock commented on the software,
As part of a broader project to bring
“Missed hospital appointments waste
the benefits of AI to the NHS, UCLH
patient and staff time, prevent sick
has produced an algorithm using
people from being seen at the earliest
Current health secretary, Matt
e uro pe .busi ne ssc hief. com
CITY FOCUS | LONDON
‘Artificial intelligence has enormous potential to revolutionise healthcare’ 84
opportunity and cost our amazing NHS
reported that their machine learn-
an unjustifiable amount of money.”
ing software developed to automate
He added, “Artificial intelligence has
delineation of tumours has been suc-
enormous potential to revolutionise
cessfully streamlining the previously
healthcare and this is exactly the
multiple hour-long process of outlining
type of innovation our NHS needs to
borders and contours of prostate
embrace to ensure every penny goes
cancers. The project, known as
further as part of the long-term Plan.”
Project InnerEye, started development back in 2016.
MICROSOFT
“This collaboration between the
In 2018, Microsoft, Cambridge
InnerEye team at Microsoft and
University and Addenbrooke’s Hospital
the Department of Oncology at
OCTOBER 2019
85
Addenbrooke’s is an example of the
HEARTFLOW
type of innovation that we wish to
In April 2018, the NHS adopted the
promote within the NHS. It is a good
HeartFlow FFRct Analysis. Following
example of what can be achieved
a non-invasive coronary CTA, the
when the Trust works in collaboration
HeartFlow software uses deep learn-
with industry and the University in order
ing to create a personalised, 3D digital
to produce cutting edge technologies
model of a patient’s coronary arter-
with real-world applications in patient
ies. The software then uses powerful
care, to benefit the UK,” says Chief
algorithms to assess the impact of
Executive Officer, Cambridge University
blockages and determine how to
Hospitals NHS Foundation Trust,
stimulate blood flow. Trials have dem-
Roland Sinker.
onstrated that the technology can e uro pe .busi ne ssc hief. com
CITY FOCUS | LONDON
reduce unnecessary and invasive diagnosis and procedures that can lead to high risk complications. “Using the HeartFlow Analysis has transformed our paradigm for investigating chest pain. It has dramatically reduced the numbers of patients requiring invasive investigation and has allowed strategic targeting of therapy for those patients who still require invasive angiography, which saves both time and expense,” says Interventional Cardiologist, Dr Philip Strike at Queen 86
Alexandra Hospital, Portsmouth. “It has allowed sensible and safe waiting list management and allowed prioritisation of higher risk patients by removing unnecessary invasive assessment in other patients.”
KING’S COLLEGE LONDON When it comes to cancer diagnosis, 50% of patients are diagnosed in the last stage of growth. As a result, 80% will die within five years. With earlier diagnosis, those 80% could survive for at least five more years. The NHS began working with King’s College London and C the Signs earlier this year to support its multi-platform OCTOBER 2019
‘As of 2018, London has 4 AI universities in the world’s top 40, 645 AI company head-quarters and has received the highest VC funding in Europe of £1.8bnt’
tool that allows early identification of patients at risk of cancer. The software uses AI mapped with the latest NICE guidelines and other relevant evidence, allowing GPs to check combinations of signs, symptoms and risk factors to identify which referrals and investigations are required. The tool has been successfully trailed in Sutton and is now being piloted in Merton and Wandsworth. Although there are certainly challenges to face as the use of AI in healthcare increases – such as privacy, ensuring data is correct, and potential cyber threats – there are multiple benefits to be seen from the innovative steps made in AI. Benefits include: increasing time efficiency, reducing missed appointments, identifying treatments and referrals so that more time can be spent on severe cases. As well as earlier diagnosis of high-risk illnesses, higher accuracy when outlining tumours and reducing invasive diagnoses and procedures.
e uro pe .busi ne ssc hief. com
87
29 - 30 January, 2020 | Hotel Palace, Berlin
Be Inspired – Our Featu
Curtis Carson
Head of Engineering Process, Methods, & Performance
130
John Vermeer
Director Digital & Smart Factory
Heiko Witte
Head of Engineering Improvement
Smart Manufacturing Leaders joining us in Berlin
45
Paul Mairl
Chief Digital Officer
Thought Leadin Pioneering Indu
Save 15% on your ticket when you use the code MANG
Join The Fastest Growing Fixed Income Community Implementing Industry 4.0: Connecting People, Process & Technology
ured Keynotes Includes:
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Hotels in Europe Business Chief Europe counts down the top 10 hotels in the continent, using Travel and Leisure’s ranking of the Top 100 Hotels in the World WRITTEN BY
SHANNON LEWIS
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10
Hotel Bristol Poland
Hotel Bristol, a Luxury Collection Hotel of the Marriott family, is ranked 81st in the world by Travel and Leisure. Situated in Warsaw, Poland, it has a score of 95.60. Founded in 1901 by piano virtuoso Ignacy Paderewski, it features 165 rooms, 41 suites, and amenities such as a spa, two bars, a restaurant, and the famous CafÊ Bristol, according to the hotel’s website. Well-rated, it received a ranking of 4.7/5 on Expedia and 9.4/10 on hotels.com.
OCTOBER 2019
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09
Katikies Hotel Greece
Located in Santorini, Greece, the Katikies Hotel offers views of the Aegean Sea, views of the Aegean Sea from its location on the cliffs of the Santorini caldera. One of many Katikies properties distributed across Santorini and Mykonos, it is ranked as the 78th best hotel in the world by Travel and Leisure, with a score of 95.63. A five-star hotel, Katikies Hotel is a firm favourite for couples, with a rating of 9.8/10 for a two-person trip on Booking.com.
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08
The Lanesborough United Kingdom
The number one London-based hotel on Travel and Leisure’s 100 best hotels list, The Lanesborough places 66th in the world. With a score of 95.80, the hotel offers many amenities, including 93 luxury suites and bedrooms, the Library Bar and Garden Room, a club and spa, and the Michelin-starred CelÊste restaurant. A part of the Oetker collection, it is a globally renowned hotel, with a TripAdvisor Certificate of Excellence.
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07
Rosewood Castiglion del Bosco Italy
Located in Montalcino, Italy, the Rosewood Castiglion del Bosco is situated on an 800-year-old estate in the heart of UNESCO Heritage Site Val d’Orcia. With a score of 96.00, it is tied for 55th in the world, according to Travel and Leisure’s ranking. The hotel’s 5,000-acre estate includes a medieval church, ancient castle ruins, the Borgo, a historic village, a winery, two restaurants, a vegetable garden, and Italy’s only private golf club. It offers 23 suites and 11 luxury villas.
OCTOBER 2019
97
06
La Réserve Paris Hôtel & Spa France
Tied for 55th in the world, La Réserve Paris Hôtel & Spa has a Travel and Leisure score of 96.00. Its location in Paris guarantees guests access to iconic landmarks, adjacent to the Champs-Elysées and overlooking the Grand Palais, the Eiffel Tower, the Pantheon, and the Concorde obelisk. It has a 9/10 overall rating by the Telegraph, as well as in the categories of location, style & character, services & facilities, rooms, and food & drink.
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05
Palazzo Avino Italy
Originally built as a private villa for a 12th century Italian noble family, Palazzo Avino was inaugurated as a hotel in 1997, according to the hotel’s website. Situated in Ravello, Italy, its Travel and Leisure score of 96.15 makes it the 51st best hotel in the world. Overlooking the Mediterranean, it boasts 32 rooms and 10 suites, as well as a heated outdoor pool, a Michelin-starred restaurant, and a staff-to-guest ratio of 2:1 per room.
OCTOBER 2019
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04
Grand Hotel Villa Serbelloni Italy
One of the oldest hotels in the Lake Como area of Italy, Grand Hotel Villa Serbelloni is the only five-star deluxe hotel in Bellagio, according to the hotel’s website. It is rated the 43rd best hotel in the world by Travel and Leisure, with a score of 96.33. Famous for its beauty farm, it has a score of 8/10 on a Telegraph review, a 9/10 on Booking.com, and 4.5 stars on TripAdvisor.
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03
Grace Hotel Santorini Greece
A part of the Auberge Resorts Collection, the Grace Hotel Santorini is a clifftop resort in Santorini, Greece. With a score of 96.40, it is the 41st best hotel in the world according to Travel and Leisure. With an infinity pool overlooking the Santorini caldera, Grace Hotel Santorini offers a 180-degree view of the unique Greek landscape. It offers a wide array of experiences to guests, including fireworks shows, world-class yoga, and a luxurious spa.
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J.K. Place Firenze Italy Located in Florence, Italy, the J.K Place Firenze’s
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Travel and Leisure score of 97.27 makes it the 22nd best hotel in the world. Its 20 rooms boast unique styles by local interior designer Michele Bonan. Across the street from the Saint Maria Novella church, the hotel is a short walk away from prime Florence locations such as the Duomo and Via Tornabuoni. Its two-level penthouse suite offers a 360-degree view of the city.
OCTOBER 2019
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Canaves Oia Epitome
Greece
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The number one hotel in Europe, Canaves Oia Epitome comes 17th in the world, with a Travel and Leisure score of 97.58. Canaves Oia Epitome opened in Santorini, Greece in May 2018. Its 24 luxury villas are a part of the Canaves Oia brand, which first transformed 17th century caves into luxury hotels in 1985, according to the hotel’s website. World-rated, it has a fivestar rating on TripAdvisor and a 9.5/10 rating on Booking.com.
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OF F E R I NG I N T E R N AT ION A L DY N A M IC C U L I NA RY E X PE R I E NCE S
WRITTEN BY
AMBER DONOVAN-STEVENS PRODUCED BY
LEWIS VAUGHAN
OCTOBER 2019
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H O T E L L E R O YA L M O N C E A U
Sylvain Greiner, Director of Food and Beverage at Le Hotel Monceau, talks dynamic culinary experiences, creative partnerships and the implementation of technology into the food and beverage industry
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F
rom the outside, Le Royal Monceau – Raffles Paris hotel appears to embody classic French elegance. With its grand
architecture from 1928, the five-star Parisian hotel reopened in 2010, following a complete redesign from Philip Stark. Though understated, upon closer inspection, designs reminiscent of famous historic guests from all over the world have been incorporated into the aesthetic of the hotel. Starting in hospitality at the age of 15, Sylvain Greiner completed his formal education with a master. Now the Director of Food and Beverage, he not only matches this contemporary atmosphere, but draws from cultures all over the world to create new culinary experiences for his guests. “Food and beverage at Le Royal Monceau is one of the largest operations; it is also unusual in that we only offer experiences,” OCTOBER 2019
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H O T E L L E R O YA L M O N C E A U
“ We want to create experiences that are luxury, but understated, not the traditional French way” — Sylvain Greiner, Director of Food and Beverage, Le Royal Monceau, Raffles 110
says Greiner, “It isn’t a traditional gastronomic French restaurant, it is either a Japanese fusion restaurant, or an Italian one. We offer new experiences particularly to our Parisian guests.”
CREATIVE PARTNERSHIPS One of the most prominent attractions to the hotel is Chef Nobu Matsuhisa. Greiner shares that guests are drawn to the hotel to try his cuisine. His unique dishes combine a number of different cultures that attract Parisians and regular customers looking to try new food. OCTOBER 2019
CLICK TO WATCH : ‘LE ROYAL MONCEAU – RAFFLES PARIS’
Greiner’s responsibility is to ensure
It is for this reason that Greiner
that the hotel maintains its dynamic
strives to maintain new creative part-
edge in the food and beverage sec-
nerships and concepts. He reflects
tor, and so he created the pop-up
that during the summer, he partnered
Japanese Garden Matsuhisa Niwa.
with Moise Sfez from Homer Lobster,
“We created this restaurant to highlight
inspired from a New York lobster roll.
the skill of our Executive Chef, Hideki
Greiner goes on to discuss the pop-
Endo, and of course to publicise Nobu
up he created with Gennaro Nasti
and his sushi speciality.” Seating a
this year: “We have an Italian faction
maximum of eight, the pop-up has
within the hotel with Il Carpaccio res-
been successful, says Greiner: “There
taurant.” Nasti is, says Greiner, a true
was a real draw to this from our regu-
artisan, and “a god of pizza” in Paris.
lars. It was something different,
“It was great for us to showcase his
something exclusive.”
talent to our guests.” Greiner e uro pe .busi ne ssc hief. com
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H O T E L L E R O YA L M O N C E A U
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OCTOBER 2019
E XE CU T I VE PRO FI LE
Sylvain Greiner Sylvain Greiner graduated in 2005 with honours from the University of Toulouse, where he achieved a specialised diploma (DESS) in Tourism Industries. Sylvain began his career as Assistant to Revenue Manager during his internship in the Accor Hotels group. He then joined the Hilton Luxembourg for a mission as Assistant to Operations Manager as part of his specialised diploma. His career within the restaurant sector began in 2006 with Hyatt, where he held several operating functions before being appointed as Operational Manager of the Food and Beverage venues. In 2008, he joined the Ritz Paris hotel as Sales, Conventions and Receptions Director before becoming Food and Beverage Manager in 2011. Expressing his willingness to learn and satisfying his taste for high standards, Sylvain decided to integrate Le Meurice hotel (Dorchester Collection) in 2012 as Deputy Director of Food and Beverage, in charge of the three Michelin star restaurant, the contemporary restaurant and teahouse, the bar and the room service, the mini bar and receptions. He then joined the Buddha Bar Hotel Paris in 2014 as Director of Food and Beverage and interim General Manager in 2015. Following his rich and varied career path, Sylvain has decided to join Le Hotel Monceau as Director of Food and Beverage in order to share his knowledge, his passion for restoration and also his management skills and sense of excellence.
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H O T E L L E R O YA L M O N C E A U
“ E mployees will come for the brand and product, but stay for the managers” — Sylvain Greiner, Director of Food and Beverage, Le Royal Monceau, Raffles
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OCTOBER 2019
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CLICK TO WATCH : ‘PRESIDENTIAL SUITES, LE ROYAL MONCEAU – RAFFLES PARIS’
acknowledges that customers
TECHNOLOGY
demand more from a high-quality
Greiner says that the desire to imple-
hotel, and seek to engage with new
ment technology is always centered
experiences upon each visit. To
around a very “human experience.”
ensure that his vision is consistent
Technology divides into two categories
across the hotel, Greiner says that
for him: “sales reports, which are so
attracting and retaining top-tier staff
much more accessible today than they
is paramount: “It is particularly
used to be. Now we can use analytics
important to have the right employ-
tools such as Avero and then imple-
ees in directorial positions across
ment this data to suit the business
the restaurant, bar, banquet and
strategy,” and customer feedback.
room service. Employees will come
Greiner references TrustYou, which is
for the brand and product, but stay
a platform used to collate customer
for the managers.”
feedback based on the language they e uro pe .busi ne ssc hief. com
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H O T E L L E R O YA L M O N C E A U
use. “With TrustYou, you can have 200 comments refined into a couple of sentences from the most regularly used words. The efficiency this provides is excellent, and allows us to respond to customer feedback faster than ever.” Another partner that he cites as integral to the operations across food & beverage is a family-owned, Torontobased company, Silverware POS: “Silverware POS has a great team, and they are constantly challenging themselves and meeting our requests head118
on. This partnership has opened many new opportunities and the interface is user-friendly for both restaurant employees and accounting and IP teams alike. Partnerships are so important in this business to remain profitable.” This is a value shared across the hotel. Greiner states that there is a director of strategic partnerships who he has worked closely with. “This role gives us a real competitive advantage as we now have the foundations and can begin to offer more singular experiences. When This, combined with these partnerships, allows for us to streamline our operations to focus on creating this truly dynamic experience.” OCTOBER 2019
“ Food and beverage at Le Royal Monceau is one of the largest operations, and unusual as we only offer experience” — Sylvain Greiner, Director of Food and Beverage, Le Royal Monceau, Raffles
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H O T E L L E R O YA L M O N C E A U
1928
Year hotel opened
280,000
Number of employees (Accor Hotels)
4,800
120
Number of hotels worldwide (Accor Hotels)
OCTOBER 2019
LOOKING FORWARD As the hotel moves forward, Greiner enthuses that it plans to progress under the same strategy of maintaining contemporary art and continuously offering ephemeral and dynamic experiences to loyal guests. “We want to create experiences that are luxury, but understated, not the traditional French way. I also want to build a closer relationship between chefs and the guests, to make guests’ experiences at the hotel all the more special.” Another experience soon to be available is an afternoon tea, inspired and based around the French poet, Jean Cocteau. The poet is already present across the hotel, with his poems adorning bedside cabinets, and his scribbled musings incorporated into the lightware and furnishings; they will now accent the new porcelain from Raynaud. As Greiner moves forward with his dynamic partnerships, his customers, both new and loyal, can continue to expect the high pedigree of understated luxury that is intrinsic to le Royal Monceau.
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IMPROVING CARE 122
T HR OUGH D IGI TA L T R A N S F O R M AT I O N WRITTEN BY
MATT HIGH PRODUCED BY
LEWIS VAUGHAN
OCTOBER 2019
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BROTHERS OF CHARIT Y SERVICES IREL AND
BROTH E R S O F C H AR IT Y S E RV I C E S I REL A ND IS U ND E R G O I N G A DI GI TA L TR AN SFO R MAT IO N B UI LT ON A N AMBITION TO PROVIDE BETTER CARE TO TH E C O MMU NIT Y
A
sk companies their distinguishing factors and there is every likelihood you will hear similar themes
time and again. Fewer, however, will bypass many of the more typical board-level buzzwords in favour of a simpler response: 124
‘caring’. But that is how Ronan Coy, National Head of ICT (CIO) at Brothers of Charity Services Ireland, describes the culture at the Irish charity organisation that supports more than 7,000 people across Ireland with intellectual disabilities. Coy has been with the organisation for three years, having previously held high-level positions with the likes of Fujitsu Ireland (Director, Strategic Projects) and IBEC (Chair, Data Working Group). His current role, he admits, is a “very different world”, a far cry from the “cutthroat” IT sector positions he has previously held. “Brothers of Charity Services Ireland is an incredibly caring organisation,” Coy states, “every employee and all those in charge are primarily focused OCTOBER 2019
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BROTHERS OF CHARIT Y SERVICES IREL AND
126
on the people we support, with an
digital transformation, including the
ethos of caring that ensures we always
nationalisation of the organisation’s
put their needs at the forefront of
IT infrastructure, business applica-
anything we do. It is what drives us.”
tion systems and ICT services. “It has
Coy joined the organisation in
been a true consolidation journey,” Coy
September 2016, tasked with spear-
expands. “There are several strands
heading an ongoing process of change
to that journey, such as the alignment
that involves bringing the operational
between the various regional organi-
structure from one that was spread
sations, the considerable technology
across six regional companies – Clare,
transformation and evolution that has
Galway, Limerick, Roscommon,
been necessary to facilitate that,
South East and Southern – to one
and a wider organisational and
national company. It is a process, he
cultural development that is still
says, that has required significant
ongoing. It has been a significant
OCTOBER 2019
change, and one that has brought inevitable disruption to the organisation, but it’s also been an exciting journey in which we are making use of new and innovative technologies and taking advantage of opportunities that we would not have had in the past.” Coy’s key focus within that journey has been managing a technology transition that he describes as initially challenging. “The local cultures in each of the regional organisations were very much inwardly-focused and still using legacy IT systems, making
€200mn+ Approximate revenue
1883
Year founded
4,138
Approximate number of employees 127
E X E CU T I VE PRO FI LE
Ronan Coy Ronan Coy is the National Head of ICT (CIO) at Brothers of Charity Services Ireland (BOCSI). In this role, he oversees all aspects of information technology, information security, data and analytics for one of Ireland’s largest charities. Prior to joining BOCSI in 2016, Coy was Director of Strategic Projects at Fujitsu Ireland Ltd. With 18 years in the high-tech industry, he also served in various roles including Bid Director, CTO and IT consultant. Coy has worked with IBEC, focusing on positioning Ireland as a global ICT powerhouse. He holds a BEng in Electronic Engineering from University of Limerick and a MSC in Technology Management from National University of Ireland, Galway.
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BROTHERS OF CHARIT Y SERVICES IREL AND
“ I T H AS B E E N A TRUE C ONSO LI DAT I O N JOURNEY“ Ronan Coy National Head of ICT (CIO), Brothers of Charity Services Ireland
the key priority one of standardisation and data harmonisation by moving to cloud systems. One of my first actions was to summarise what we hope to achieve with something I call ‘E-cubed’: effective frontline services, empowering people in and outside of the organisation through the use of technology, and providing the best experience for those that we support.” This was followed by a focus on standardisation. Coy readily admits that the organisation had
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con tact us
CLICK TO WATCH : HAPPY HERITAGE DAY 129 been “somewhat insulated from the
platform to move forward with our
broader developments in some IT
vision and to make use of the cloud
processes, meaning that standardis-
and other Microsoft technologies
ing all of our processes had to be the
to drive our journey,” Coy adds.
first part of the journey.” Second, he
“We’re making the change from
adds, was migrating to a secure data
Exchange 2003 and various other
centre environment. The organisa-
platforms to the cloud, and it’s not
tion was aided on this migration
straightforward, but we’re using tools
through its relationship with partner,
like BitTitan MigrationWiz to move to
Unity Technologies, which was also
the newest systems as seamlessly
working closely with Microsoft. As a
as possible. We’ve found that moving
result of this partnership, Brothers of
everyone to the cloud has not only
Charity Services Ireland was awarded
brought the expected benefits from
a grant by Microsoft in 2017 worth
a standardisation point of view, it has
more than €3m. “This gave us the
also allowed us to function far more e uro pe .busi ne ssc hief. com
BROTHERS OF CHARIT Y SERVICES IREL AND
efficiently and effectively,” says Coy. The level of digital transformation seen at Brothers of Charity Services Ireland is being mirrored across the charity sector on a wider basis, Coy explains, with a broader attitude emerging of how to consider and deliver charitable services in new and innovative ways. To this end, Coy is keen to work towards the development of a centre of shared excellence through which all charitable organisations in Ireland can deliver 130
more individualised services. Such a system, he notes, would also allow for the transferring and sharing of data across organisations and services. “My ultimate goal is that we have an individualised portal for each person,” he explains. “However, in order for that to happen, we need to build these foundation elements that are part of our current journey. It will require a significant cultural shift from where we are today, but the ideal is the creation of an interactive portal through which we can entirely rethink the way we provide services and make better use of smart technologies. It makes absolute sense for that to be our vision.” OCTOBER 2019
“ M Y U LT I M AT E G O A L I S T H AT W E H AV E AN INDIVIDUALISED P O R TA L F O R E A C H PERSON” Ronan Coy National Head of ICT (CIO), Brothers of Charity Services Ireland Achieving that vision will rely on the continuation of the organisation’s digitisation. On this subject, Coy sees the continued implementation of new technologies and smarter ways of working as key. “We still feel like a paper organisation, and I want us to move away from that. We’re on our way – our new cloud platform, Aspire, allows us to store vast amounts of data and view it in real time – but we need to continue to drive through the modernisation of the remaining legacy systems over the next three to five years so that we have a truly modern and integrated workforce.”
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131
IT'S NOT JUST AN AIRLINE. IT'S ISRAEL
132
EL AL ISRAEL AIRLINE NAVIGATING DIGITAL T TO BECOME A ‘SMART WRITTEN BY
AMBER DONOVAN-STEVENS
OCTOBER 2019
PRODUCED BY
K ANE WELLER
133
ES: TRANSFORMATION AIRLINE’ e uro pe .busi ne ssc hief. com
EL AL ISRAEL AIRLINES
SHAHAR MARKOVITCH, THE CHIEF DIGITAL AND INFORMATION OFFICER OF EL AL ISRAEL AIRLINES, EXPLAINS HOW THE ADOPTION OF AI AND DATA ANALYTICS IS STRENGTHENING EL AL AS THE ‘SMART AIRLINE’ OF THE STARTUP NATION
E
L AL is Israel’s national airline, boasting close to 6mn customers a year and US$2bn in annual revenue. Before joining
EL AL as the airline’s Chief Digital and Information Officer, Shahar Markovitch was the Chief Digital 134
Officer of Bank Hapoalim, one of Israel’s largest banks. Prior to that he was a partner of the consulting firm McKinsey & Company, and as such brings experience of shaping the digital strategy and leading digital and IT transformations of organisations all over the world. A little over a year ago, Markovitch brought this expertise to EL AL to assist in the creation of a new division that combines IT and digital to drive the technological transformation of the company. Markovitch begins by sharing that there are two key disruptions in the airline industry today. The first is “the digital airline, which is a combination of both new business models like the low-cost carrier model with new open sky regulation.” Secondly, he adds that “the customer is becoming more digital” with access to dozens of options for booking their flight. Yet Markovitch also says that there is a new OCTOBER 2019
135
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EL AL ISRAEL AIRLINES
revolution hurtling towards the airline
business, airlines are one of the
industry: what he calls the smart airline
industries to benefit most from AI and
revolution, major disruption fueled by a
machine learning technologies,” he says.
combination of data and machine
“When we built our strategy for EL AL’s
learning. A key component of a ‘smart
technology and digital transformation,
airline’ is the ability to leverage AI,
we realised that we need to win in these
machine learning and analytics to deliver
two fronts at the same time. On the one
a better, more personalised customer
hand, we had to fully transition to a
experience, drive revenues and
‘digital airline’ to remain competitive,
profitability, and improve operational
on the other hand, we must build capa-
efficiency. “According to research,
bilities for becoming a smart airline
due to the massive complexity of the
in order to remain ahead of the next
136
OCTOBER 2019
CLICK TO WATCH : ‘EL AL ISRAEL AIRLINES: MILESSTONES’ 137
disruption.” EL AL also realised that one of its main differentiators in the technology space is the fact that it is the airline of
native” capabilities in its day to day life? 3. How do we make ELAL’s “IT factory” a competitive differentiator?
the ‘startup nation,’ being immersed in ecosystems in the world. This gave birth
1. IMPACT OF TECHNOLOGY AND ROADMAP FOR THE ‘SMART AIRLINE’
to its vision of becoming the smart airline
EL AL started with defining a clear
of the startup nation.
roadmap on how technology as a
one of the most vibrant tech and startup
To achieve this vision, the company
whole will transform the company.
defined a transformation plan centered
“This is what our business should
around the following questions:
look like in the future across all areas
1. How will technology affect every aspect of our airline operations? 2. How will ELAL infuse “digital
of operation, from front to back – anything from having leading digital websites all the way through having e uro pe .busi ne ssc hief. com
Don’t guess how people feel about your business. Let them tell you. Experience Management is here. Understand what your customers are feeling and act on it. sap.com/XM Š 2019 SAP SE or an SAP affiliate company. All rights reserved.
LET’S MOVE THE WORLD, TOGETHER At SITA we’re co-innovating with customers to give passengers greater control over their travel experiences. Through increased self-service options and more real-time information we’re ensuring they’ll enjoy more seamless journeys through the airport. Because when air travel is simple, it has the power to move passengers emotionally as well as physically. sita.aero
automated back-end operations to
nance of its planes. As components to
dynamic and smart routing to giving
planes are expensive, aircraft are
our employees better smart digital
regularly maintained. Every few
tools,” says Markovitch. Given the
months each plane is taken apart and
importance of operational excellence
reassembled again to inspect all of its
for airlines, a large part of the roadmap
components. To manage this, Marko-
addressed these areas. For example,
vitch explains, EL AL has implemented
one of the areas where EL AL sees
a system designed by Swiss Aviation
huge potential for leveraging technology
called AMOS, which digitised the
to transform operations is the mainte-
end-to-end maintenance process.
E XE CU T I VE PRO FI LE
Shahar Markovitch Shahar Markovitch is Chief Digital and Information Officer of EL AL Israel Airlines as of March 2018. Shahar joins El Al from Bank Hapoalim, Israel’s largest bank, where he served as Chief Digital Officer, responsible for digital strategy and roadmap, customer experience, digital platforms, and all digital related projects. As part of his role there, Shahar launched a number of award winning digital products, including bit, Israel’s largest P2P payment app. Previously he was a partner in McKinsey & Company, focusing on digital, technology, and innovation, and leading digital transformations for the world’s leading organisations. Before McKinsey Shahar held technology and leadership positions in a number of Israeli high-tech startups and partner communication. Shahar holds a Bachelor of Science degree with distinction in Computer Science and Maths from the Hebrew University in Jerusalem and a Master in Business Administration from MIT in Cambridge, USA, with a 5.0/5.0 GPA. He was recognised as one of Israel’s top 100 people in digital for 2017.
e uro pe .busi ne ssc hief. com
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EL AL ISRAEL AIRLINES
“ A KEY COMPONENT OF A ‘SMART AIRLINE’ IS THE ABILITY TO LEVERAGE AI, MACHINE LEARNING AND ANALYTICS TO IMPROVE THE AIRLINE WITH THE EXTRACTED DATA” 142
— Shahar Markovitch, Chief Digital and Information Officer, El Al Israel
OCTOBER 2019
143
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EL AL ISRAEL AIRLINES
144
C O M PA N Y FACT S
• One terabyte of data is generated from every flight • EL AL is Israel’s national airline boasting close to 6mn customers a year, and US$2bn in annual revenue
OCTOBER 2019
EL AL is also extending this system to create a fully paperless maintenance process where all of the ground technicians will use tablets for maintenance activities. Another example is end to end management of finances and process management. “We are working with SAP to digitise, automate and create the technology backbone for our entire finance and procurement operations, including some of our warehouse management activities.” This allows a greater streamlining of operations, saving time and money.
2. INFUSING “DIGITAL NATIVE” CAPABILITIES IN THE DAY TO DAY LIFE OF THE AIRLINE As part of the transformation, ELAL is focusing on embedding “digital native” capabilities that are a must have for every company operating in the digital age in the areas of customer experience, digital platforms, and data and analytics. “We start with customer experience, and how our plan fits with the end to end customer journey,” Markovitch explains. “It’s about how we leverage methodologies like design thinking to drive the actual value e uro pe .busi ne ssc hief. com
145
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$2.1bn Approximate revenue (USD)
business makes, and using insights to increase profitability. These capabilities work together to deliver innovative digital products to EL AL’s customers. For example, customer
1948
research showed that one of the pains for customers traveling abroad is the
Year founded
cost of a taxi to the airport. As a
6,000
innovative digital platform called
Approximate number of employees
response EL AL developed an “Taxi Pool”. This is one of the first services of its kind, designed to facilitate sharing taxis for customers who travel from the airport to the same hotel or hotels in close proximity. The system connects people who are
proposition that we offer our customers
taking the same flight, matching up
as part of our overall transformation
groups who can pool a taxi to save
roadmap.” Then EL AL considers its
money. This service is provided by EL
digital platforms, which includes not
AL to customers all over the world, no
only upgrading its digital channels but
matter what airline they are using.
also transforming the way the company
These capabilities are further
thinks of and develops these channels,
accelerated by implementing start-up
moving from “a project view of the world
technology solutions. One example is
to a product view of the world” with the
a hybrid chatbot EL AL launched to
aspiration of operating like a “native
assist customers, which can be
digital player”. The last value multiplier is
accessed through WhatsApp or
leveraging data and advanced analytics,
Facebook Messenger. The hybrid bot
which Markovitch says is essentially
mixes state of the art AI with human
managing data as an asset, embedding
support. Should the bot be unable to
data-driven tools into every decision the
provide a solution to the customer, e uro pe .busi ne ssc hief. com
147
AMOS. AGAIN.
AMOS, the world-class M&E software solution, supports EL AL’s vision to become a paperless company. Swiss-AS recognizes EL AL as one of the early adopters when it comes to digitizing and then later digitalizing all maintenance processes. EL AL is a customer that is investing a lot of effort in fully understanding the potential that lies in AMOS and exploiting it to the maximum.
“ Implementing AMOS in our organization enabled us to have end to end solution with full transparency of M&E processes & costs. We can now better control the work in all our departments, improve our inventory management and establish better automated connections to our customers and suppliers. AMOS enables us to constantly improve our processes to be lean & efficient.” EL AL’s Department Manager SW implementation in M&E
SWISS-AS.COM
member of the support team, without
3. TURNING THE IT FACTORY TO A COMPETITIVE ADVANTAGE
the customer ever needing to be aware
Markovitch highlights that the third pillar
of this shift. Another example of a
of the company’s digital transformation
digital platform that combines data and
is upgrading its technology factory. This
analytics with advanced data analytics
focuses on transforming the entire
is Bid2Fly. This solution uses data
technology stack to enable faster time
analytics to analyse low sale flights
to market and greater flexibility while
and combine that with the buying
ensuring resilience and security in
patterns of a customer. If a customer is
everything EL AL does. Part of this
unlikely to buy a flight, they have the
includes moving towards a more agile
opportunity to save up to 50% on a
way of working and changing the
flight by bidding on it at auction that
software architecture and infrastructure.
may not have sold at all otherwise.
In this activity as well, the focus in on
there is a seamless connection to a
OCTOBER 2019
bringing business value and competitive
flexibility the business demands.
advantage through the technology
EL AL has also implemented a Big Data
factory. For example, “How do we
solution based on Cloudera. “The
enable better services for our custom-
queues, the various dates, and the
ers through API and open systems?
analytics we run on the Cloudera
What value can we bring by accelerating
infrastructure are to decide what kind of
our move to the cloud, and how will the
marketing message we should provide,
automation of our IT operation improve
and how to better appeal to each
our customer satisfaction”
customer,” he explains.
When faced with the goal of creating a
As EL AL looks to the future,
more personalised customer experience
Markovitch says that there is already a
using its Adobe marketing automation
lot in the pipeline. After a recent upgrade
solution, the focus was on finding a
to the mobile app, the company has
solution that could process large
launched a new website, which will
amounts of data but also provide the
improve upon customer engagement and allow customers to access and better understand their frequent traveller miles. Additionally, the airline is acquiring new planes including the Dreamliner 787 which are being equipped with Wi-Fi. “Overall, we’re going through quite a lot of changes and technology is a vital part of these changes.” With a clear path set, it is without a doubt that EL AL will continue to strengthen its position as the ‘smart airline’ of the startup nation.
IT'S NOT JUST AN AIRLINE. IT'S ISRAEL
e uro pe .busi ne ssc hief. com
149
150
WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
RICHARD DEANE
OCTOBER 2019
151
e uro pe .busi ne ssc hief. com
ALACER GOLD
The construction of the Çöpler Sulfide Plant is a game-changer for intermediate gold producer Alacer
T
he Çöpler Sulfide Expansion Project (CSEP) was completed on time and ~10% under its projected budget of $744mn.
The project was delivered 13 million hours Lost Time Injury (LTI) free, and with a Total Recordable Injury Frequency Rate (TRIFR) of 1.84 per million hours – a record that Chief Operating Officer 152
Stewart Beckman describes as a “stellar” achievement for the more than 3,000-strong team responsible for construction and the operations team, who are responsible for ramping up and running the new plant. The successful completion of the CSEP, combined with its operational oxide plant, will provide Alacer’s Çöpler Gold Mine with a strong foundation for at least the next 20 years. “For approximately 10 years we have produced gold by processing oxide ore through our heap leach plant. Underneath the oxide ores are sulfide ores that also contain gold, but gold that cannot be recovered by simple leaching. Nature converted the top of the deposit to oxide ore by slowly oxidising the sulfide ores. The construction of the Çöpler Sulfide Plant gives us the ability to accelerate the process and rapidly OCTOBER 2019
153
e uro pe .busi ne ssc hief. com
WINNING THE GOLD METAL !
your local contact
more information
It‘s the teamwork that leads a project to success! Our expertise for your success in: Process studies Process related developments Finite element calculations Hardware solutions
EKATO Rühr- und Mischtechnik GmbH | Hohe-Flum-Str. 37 | 79650 Schopfheim | Germany | +49 7622 29-0 | info@ekato.com
Close collaboration with EKATO for the Çöpler Sulfide Expansion Project As for many other mineral processing projects, EKATO accompanied the Çöpler gold project over the last years. Already in the early design stages an intensive exchange and discussions between the end customer, engineering company and the equipment suppliers like EKATO took place. As the experience with other similar projects has shown in the past, this collaboration is increasingly limited to not just the equipment but to an extended scope of supply, which is appreciated by customers. In these cases, EKATO, with more than 85 years of experience in mixing technology and state-of-the-art testing equipment in its technical center, offers much more than just agitators. This additional scope can be quite extensive and cover all types of agitated applications in the plant flowsheet. For Anagold’s Çöpler Sulfide Expansion Project, EKATO designed and delivered agitators for all large agitated applications including the POX autoclaves‘ agitators. EKATO also performed several studies in its technical center. One of these series of tests was related to the optimum feed pipe locations and geometries in the first autoclave compartment. These tests in the model scale were then backed up by CFD (Computational Fluid Dynamics) studies which were carried out in-house as well. Other services included the assessment of slurry rheology data, supplied by other parties. The consideration of the appropriate slurry rheology is crucial for the proper operation of the agitators, especially for the large atmospheric tanks with capacities up to several thousand cubic meters. For this particular project, additional CFD simulations were prepared to double-check the designs of these tanks. EKATO’s capabilities also allow to extend this scope, provided during the design and construction phase, to the start-up and operation of the plant.
3D model of a world scale POX autoclave
Of course EKATO’s solutions are not limited to process related issues. The reliable mechanical design of the agitators, including the in-house manufactured mechanical seals and supply systems, ensures a maximum life time of the equipment with longest service intervals. This overall reliability has not only been proven in this particular project but in many other projects in mineral processing.
Pilot autoclaves in EKATO‘s R&D Center
www.ekato.com
ALACER GOLD
“ A “stellar”achievement for the more than 3,000-strong team responsible for construction and the operations team, who are responsible for ramping up and running the new plant”
156
— Stewart Beckman, Chief Operating Officer, Alacer Gold
OCTOBER 2019
oxidise the sulfide ores, enabling us to recover the considerable gold value that was previously trapped,” explains Beckman. “The oxide ore in the original mining area was depleting and so, without the CSEP, the Çöpler Mine would have been facing declining production and the prospect of winding down operations. However, the CSEP now gives the operations ~20 years of life. In addition, recent discoveries of new oxide ore deposits around the original Çöpler deposit now provide the prospect of extending the
CLICK TO WATCH : ‘ALACER GOLD: EMPOWERING EMPLOYEES AND TRANSFORMING THE FUTURE WITH SAP S/4HANA®’ 157 life of the oxide ore processing well into the future. We have gone from the prospect of declining operations at Çöpler to now having a very bright future, with both the oxide plant and the sulfide plant running. This is a great outcome for our business, our employees and the communities that are supported by the mine’s operations”. In 2019, Çöpler is expected to produce 355-415 koz at an AISC range of $675-725/oz from both the oxides and sulfides. Project Director John Ebbett oversaw the design and build of the CSEP, explaining that the construction of the e uro pe .busi ne ssc hief. com
No Margin for Error Congratulations to Alacer Gold and the Wood Group, we look forward to our continued working relationship at this site and other potential projects in the future. Koch Knight, LLC is a leader in acid proof and corrosion solutions with capabilities in construction, engineering and services, working with state-of-the-art ceramics and plastic materials. Koch Knight manufactures ceramic products which include, brick, proprietary mortars and membranes highly suited for the mining industry. Koch Knight provides responsive, customer-focused solutions. Our products and services are available worldwide through our global network of manufacturing and outsourcing ceramic and plastic facilities. Whether it is a revamp or new construction, from start to finish, Koch Knight will assist you with every step to ensure speedy completion and successful results.
LEARN MORE Globally Known, Globally Chosen
new plant utilised an Integrated Project
behaviours, while also remaining
Management Team (IPMT) model to
involved throughout the project by
successfully break down inter-company
performing organisational health
barriers, increase transparency and
checks and assisting with change as
drive individual accountability. “This
the project progressed through its
allowed project issues to be highlighted
execution stages.”
and dealt with in a timely manner,”
Ebbett’s teams were able to take
he says. “Early in the development of
advantage of existing infrastructure on
the IPMT, 4Points were engaged to
site and built additional accommodation
develop a structured programme that
for the 3,000 temporary workers “at
would instill the desired culture and
well above the typical local standards
E XE CU T I VE PRO FI LE
159
John Ebbett John Ebbett spent almost five years as Project Director at Alacer Gold throughout the construction process on the company’s Çöpler Sulfide Expansion Project (CSEP). Previously, he spent over four years working as Project Manager for Newcrest in Indonesia and Papua New Guinea. Managing the portfolio of capital works at the Lihir Gold Mine, he ensured that capital use was efficient and aligned with Newcrest’s short- and long-term strategic plans. The projects delivered during this time included optimising the process plant following the MOPU project, community infrastructure and refurbishment of process plant facilities. Prior to this he was a Senior Mechanical Engineer at Ausenco, where he has now returned to take up the role of Vice President, Global Project Delivery.
e uro pe .busi ne ssc hief. com
ALACER GOLD
160
OCTOBER 2019
“ The construction of the Çöpler Sulfide Plant gives us the ability to accelerate the process and rapidly oxidise the sulfide ores, enabling us to recover the considerable gold value that was previously trapped” — Stewart Beckman, Chief Operating Officer, Alacer Gold
e uro pe .busi ne ssc hief. com
161
Think about your entire circuit; we have. Consider an end-to-end solution from Weir Minerals. Our product range covers everything you need. With best-in-class products from Cavex®, Enduron®, Isogate®, Linatex®, Trio® and Warman®, your circuit will work in perfect harmony. Whether it’s a pump or an entire circuit, every Weir product comes with a lifetime of support from Weir Minerals’ extensive global service network. That’s what makes our market leading product range, market leading, from end-to-end.
To get more from your plant, visit www.global.weir today.
Weir Turkey Mineralleri Ltd. Şti. T +90 216 688 16 06 www.global.weir
Copyright © 2018 Weir Minerals Europe Ltd. All rights reserved. WARMAN, CAVEX, ISOGATE, LINATEX, ENDURON and WEIR LOGO are trade marks and/or registered trade marks of The Weir Group PLC and/or its subsidiaries. Certain features of the technology featured in this publication may be protected by pending and granted patents and designs in the name of The Weir Group PLC and/or its subsidiaries.
163
for a construction site”, along with
sections of scope: the process plant,
more than 100 apartments, including
tailings storage facility and support
three-bed family units, for the ongoing
infrastructure. The tailings storage
operations team. “Compared to some
facility is a fully lined, downstream
of the projects I have completed
impoundment with both under and over
elsewhere in the world, the infrastruc-
drain systems. The embankment is a
ture in eastern Turkey is fantastic. We
mass wall, with phase one constructed
had a great road to the mine site, a
during the CSEP construction,
50MW hydro power station 5km away
containing 3.5 million m3 of structural
(connected to the national grid) and
rock fill. The construction of the TSF
other hydro power stations in the area.”
was delivered using the current mining
The CSEP comprised of three major
contractor, Çiftay, with Golder providing e uro pe .busi ne ssc hief. com
Delivering value-driven solutions for the future Backed by a 60+ year history delivering some of the world’s most logistically and challenging mining projects, Wood has a proven ability to optimize asset performance, drive capital efficiency and deliver for our customers. From early-stage concepts and evaluations to turn-key projects and asset solutions, we are implementing technology-enhanced solutions to change the blueprint for the next generation of mining. Our global experts challenge the impossible to meet the growing demand for materials that make future technologies possible.
Click here to learn more at woodplc.com/mms
construction quality control.
The process plant scope included
The infrastructure scope included
crushing, grinding, acidulation,
upgraded access roads, accommoda-
pressure oxidation, iron/arsenic
tion apartments for staff, an upgraded
precipitation, counter current decanta-
water supply system and other site
tion, leach, carbon in pulp, elution,
facilities. The bulk of this infrastructure
electrowinning, detox/neutralisation
was delivered by local contractors from
and tailings pumping. “A key feature of
within the Çöpler District, resulting in a
the process plant is the twin autoclave
significant level of community involve-
circuits that, due to transport con-
ment. The CSEP was an opportunity to
straints, required vessels to undergo
further develop local contractor
final assembly and post-weld heat
capability and assist with Alacer’s goal
treatment on site,” reveals Ebbett of
of creating a sustainable operation and
this industry-leading approach. “We
surrounding community.
looked at the best way we could get
E XE CU T I VE PRO FI LE
Stewart Beckman Mr. Beckman joined Alacer Gold in June 2016. He has 30 years of experience in the mining and minerals processing industry. Prior to joining Alacer, Mr. Beckman spent 19 years with Rio Tinto, working across a number of product groups in senior leadership, minerals processing, mining operations and project development roles. His most recent roles were Global Lead for Group Working Capital Reduction and Senior Vice President Operations and Technical Development for Turquoise Hill Resources and Director Oyu Tolgoi Expansion. Prior to joining Rio Tinto, he spent seven years in a variety of operational roles at Placer Dome.
e uro pe .busi ne ssc hief. com
165
Courage, firm steps, innovation, and common sense. Result: Success More than 130 successfully completed projects on three different continents. Ranking in ENR’s “Top Contractors League” Since 2006. Logistics power extending over three continents. 22 million accident free man/hours.
As a prestigious contracting company preferred in infrastructure, substructure, housing and industrial plant projects, G İnşaat is a leading, innovative, and environment-friendly solution partner, which has adopted the principle of making maximum use of modern technology. GAP has undertaken the whole scope of Civil Works, Steel Structure, Equipment Installation, Lifting, Piping, Carbon Steel, Stainless Steel and Super Duplex Tanks installation, Electrical and Instrumentation Works and Scaffolding Works at ÇÖPLER PROJECT .
LEARN MORE
CONTACT US
www.gapinsaat.com | www.calik.com HQ (0 212) 306 50 00
the autoclaves to site in sections within
flexibility are also provided by matching
the tight transport limits in terms of
the twin horizontal autoclave configura-
both size and weight. Transporting the
tion to the twin train oxygen plant
autoclave to site in sections allowed us
(supplied by Air Liquide under a build
to balance the operational benefits of
own operating agreement).
horizontal autoclaves, and to minimise
Ebbett recalls the unity of the
the potential construction issues by
various branches of the contracted
only having to weld autoclaves sections
Engineering, Construction & Project
together on site rather than site
Management (EPCM) team: “Some-
fabricating the complete vessels.�
times owners can get in the way of the
Increased availability and operational
EPCM being effective; with an integrated
167
e uro pe .busi ne ssc hief. com
ALACER GOLD
168
“ Sometimes owners can get in the way of the EPCM being effective; with an integrated owner’s team and no positions duplicated we were able to meet challenges with quick decision making” — John Ebbett, Project Director, Alacer Gold
OCTOBER 2019
169
e uro pe .busi ne ssc hief. com
Industry leading severe service innovations More than ever before, autoclave operations require commissioning of process sites as quickly and efficiently as possible. Thereafter, the focus shifts to sustainability and reliability, where it becomes critical to extend the production time between major shutdowns. Extreme processing conditions require high-integrity valve designs with the most advanced coatings. For over forty years, MOGAS has invested in surface engineering development, culminating in the latest and most advanced coating technologies. Our breakthrough ML-381 metallurgically bonded weld overlay has been proven to substantially increase the time of plant operations between shutdowns. When profitability and efficiency are key, MOGAS valves outperform the competition time and time again.
www.mogas.com
The Çöpler Gold Mine Alacer continues to pursue opportunities to further expand its current operating base to become a sustainable multimine producer with a focus on Turkey. The Çöpler Gold Mine is located in east-central Turkey in the Erzincan Province, approximately 1,100km east of Istanbul and 550km east of Ankara, Turkey’s capital city. The mine processes ore through two producing plants. With the recent completion
of the new sulfide plant, the Çöpler Mine will produce over 3.5 million ounces at first quartile All-in Sustaining Costs, generating robust free cash f low for approximately the next 20 years. Commercial production at the sulfide plant was declared in May 2019 and the bank completion test passed in August 2019. The ramp up continues and the plant design is proving to be robust with good upside potential.
e uro pe .busi ne ssc hief. com
171
ALACER GOLD
172
OCTOBER 2019
owner’s team and no positions duplicated, we were able to meet challenges with quick decision making.” Wood provided engineering procurement and construction management services; Carpenteria Corsi delivered POX circuit vessels, while Ekato brought mixing and agitation technologies. “The IPMT structure drove a high level of collaboration and ensured nothing fell through the cracks in terms of information shared,” adds Ebbett. Turkish contractor GAP İnşaat (a subsidiary of Çalik group, which is Alacer’s Turkish partner and 20% owner of the Çöpler Gold Mine) was the general contractor for the process plant scope of the project, working closely as part of the IPMT. “GAP was C OM PA N Y S TAT S
Çöpler Sulfide Expansion Project (CSEP) by numbers
key for us to effectively manage and work with our Turkish subcontractors,” he confirms. Ebbett maintains completion of the
• 40,363 m3 concrete
project on time and under budget was
• 8,751 tonnes steel
achieved by “getting the basics right”
• 1,164 mechanical items
and following best practice rather than
• 85km piping
taking risks with new innovations. “One
• 885km cable
of the key achievements was that we were well advanced on the engineering when the Alacer board approved the e uro pe .busi ne ssc hief. com
173
175
project,” he says. “Some resource
make sure we could get the process
projects tend to miss cost and schedule
and performance requirements Wood
targets when they’ve been approved
was specifying.”
with insufficient engineering and project definition.” Wood’s strong engineering expertise
Elsewhere on the project, MOGAS provided all of the severe service valves needed around the POX
is recognised by the project director.
(pressure oxidation) circuit. “There
“They provided the bulk of our person-
are only a few manufacturers in the
nel and worked with other key partners.
business capable of delivering the
Carpentiria Corsi fabricated the
valves required and their performance
pressure vehicles (certified under
is important for plant reliability,” says
the European Pressure Equipment
Ebbett. “Koch Knight was another vital
Directive) and also completed the site
partner, brought on board to provide
assembly, working in unison with us to
the lining of the vessels with the use of e uro pe .busi ne ssc hief. com
ALACER GOLD
3 MAJOR COMPANIES, 10 MAJOR CONTRACTORS, 3000+ PEOPLE AND 30+ CULTURES...
See how we solved the Integration challenge on the CSEP. DISCOVER HOW
A WORLD FIRST PROGRAM FOR MINING, CONSTRUCTION AND INFRASTRUCTURE PROJECTS. INTEGRATE.4POINTS.COM.AU
177 tailored acid and corrosion resistant
in the future operation of the Çöpler
materials. Also working with us was
Gold Mine and its plants was a
Weir, which supplied the specific
consideration throughout the CSEP.
equipment required (for the POX feed
“We have included the ability to take
pumps) with an elegant design and
it further,” confirms Ebbett. “The full
proven technology to function at the
control system across the plant is
high POX feed temperatures present
state-of-the-art, along with the ability
at Çöpler.” Importantly, along with
to collect and utilise data.” The new
specialist international suppliers, the
plant also has a high level of digitisation
tanks, piping and structural steel
laying the groundwork for advanced
fabrication and prefabricated electrical
analysis. “Nothing is set in stone,” he
rooms were all sourced from within
adds. “These plants are complex to run
Turkey, resulting in a high portion of
and optimise, with the operators
in-country spend.
managing many input and control
The role that technology would play
variables such as the sulfide in the ore, e uro pe .busi ne ssc hief. com
ALACER GOLD
“ There’s plenty of options to accommodate growth, and different ore characteristics through the sulfide plant.We’ve got flexibility in the process plant for the future” — John Ebbett, Project Director, Alacer Gold
178
OCTOBER 2019
oxygen consumption, oxygen efficiency, carbonates in the ore, the amount of acid being generated, etc. The ability to leverage simulators and high-powered tools will help the plant keep delivering to the highest standards in the future.” Beckman is proud of the speed at which the plant has been ramped up. “We fully expect the CSEP to have the capacity to perform beyond its nameplate design,” he says. “We’re
already working on options to make
ore characteristics through the sulfide
minor modifications to the plant to
plant. We’ve got flexibility in the
improve operations and increase
process plant for the future.”
production. Concurrently we’ve got significant exploration adjacent to the mine, so we aim to continue the oxide plant running in parallel to the sulfide plant and to increase the amount of ore available to the sulfide plant.” Ebbett concurs: “There’s plenty of options to accommodate growth, and different
179
e uro pe .busi ne ssc hief. com
180
Kinross Gold is utilising IT as the backbone of its innovation strategy WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
RICHARD DEANE
OCTOBER 2019
181
e ur o p e . b u s in e s s c hie f. c o m
KINROSS GOLD
A flexible IT strategy is helping Kinross Gold plan for the future of its diversified operations
F
ounded in 1993, Kinross Gold (Kinross) is a senior gold mining company with a diverse portfolio of mines and projects in
the United States, Brazil, Chile, Ghana, Mauritania, and Russia. Headquartered in Toronto, Canada, Kinross employs approximately 9,000 people worldwide. The company is focused on delivering value through operational excellence, balance sheet strength, disciplined growth, and responsible mining. 182
Kinross’ diverse portfolio of mines stretches from Africa to Russia. The senior gold mining company has embraced the challenge of developing its operations at remote locations across the globe where it has a strong track record of either meeting or exceeding production guidance targets for the past seven years, while regularly meeting or coming in under annual cost and capital expenditures guidance. A key component to delivering on its goals is a flexible IT strategy capable of planning for the future of Kinross’ operations. Regional IT Projects Manager – Africa, Néstor Alemán Esteban has been working for the company for almost seven years. Alemán is based in the Canary Islands at the company’s Las Palmas program management office (PMO) for IT Projects in Africa, where he oversees all projects; also taking OCTOBER 2019
183
e ur o p e . b u s in e s s c hie f. c o m
KINROSS GOLD
“ There needs to be an IT strategy behind advances in mining. To make the most of the features available from the latest software and automated hardware the technology can’t exist in silos” 184
— Néstor Alemán Esteban, Regional IT Projects Manager – Africa, Kinross Gold
responsibility for the financial control of the capital budgets of the IT department. “Much of my work has been focused on the expansion of the Tasiast mine in Mauritania,” explains Alemán. “We also run projects in the main office of Kinross in Mauritania’s capital city, Nouakchott, where we’re working on connectivity for employee accommodation.” What challenges does the company face to develop and support communications infrastructure when establishing mining projects in such remote areas? “When you’re examining the status of the mining industry everybody is talking about innovation and automation but nobody speaks about IT,” laments Alemán. “It’s the communication behind the technology initiatives that makes them work. In developed countries IT is taken for granted, but what if you are in the middle of a remote area with zero coverage from any telecom provider? In most cases that’s the story with a new mining operation and the company has to find a way of working around this. It’s important that IT and cybersecurity are not left behind, because without them you can’t support innovation safely. It’s a big risk.” Kinross was fortunate that when
OCTOBER 2019
CLICK TO WATCH : ‘KINROSS PROCEEDING WITH TASIAST 24K PROJECT’ 185 it acquired Tasiast from Red Back, a
to achieve the installation of a 60km
telco provider had infrastructure in the
aerial fiber optic, plus a 1km buried fiber
area. However, it was necessary to
optic, to get the site connected to the
start from scratch and negotiate with
underground main fiber connection of
the provider to boost bandwidth at the
Mauritania, connecting the south with
site. “We started with a 25mb micro-
the north.” Alemán believes satellite
wave connection with around 1,000
communication offers a viable reach-
people on site,” recalls Alemán. “When
back approach, but it’s typically more
activity at the site ramped up we were
costly than microwave or fiber. While
hosting around 2,500 employees with
satellite can solve the connectivity
a 45mb connection and then man-
problem from day one, communica-
aged to get that increased to 90mb
tions infrastructure offered by local
when the workforce reached 4,000.
providers over time may provide more
We now have a fiber optic connec-
cost-effective alternatives.
tion of 155mb+. It was challenging
Meanwhile, the corporate office e ur o p e . b u s in e s s c hie f. c o m
KINROSS GOLD
186
headquarters of Kinross in Toronto
and from across Mauritania, carrying
handles the perimeter security of the
with them old and unsecured devices
company’s network bubble. “We are
being connected to the network.
responsible for the security of the mine
Alemán believes innovation should
site. We have Las Palmas, Ghana, and
be about much more than modernisa-
Mauritania connected together via
tion with equipment. “There needs to
Toronto, so when somebody enters our
be an IT strategy behind advances in
network through the perimeter secu-
mining,” he urges. “To make the most
rity of Toronto it’s our responsibility to
of the features available from the latest
ensure they don’t behave maliciously in
software and automated hardware the
our network,” adds Alemán. The chal-
technology can’t exist in silos.” Alemán
lenge for his team is maintaining those
champions the concept of interoper-
levels of security when contractors are
ability to ensure value reaches across
arriving from Morocco, Mali, Senegal
the operation. “Mine management
OCTOBER 2019
need to ask themselves where they
chasing new systems and machinery
see operation two years from now in
that might not be compatible with each
terms of innovation and modernisa-
other.” He argues IT should have a seat
tion. Long-term strategies are im-
at the decision-making table, they’re
portant. For example, to implement
not just the guys providing WiFi but the
autonomous vehicles you need to set
team who ensure systems can commu-
your goals by changing mindsets and
nicate with each other.
processes way before you start pur-
Kinross has made big steps forward
E XE CU T I VE PRO FI LE
Néstor Alemán Esteban Néstor Alemán Esteban has been an IT Project Manager at Kinross, the world’s fourth largest gold mining company, for almost seven years. Prior to that he worked for NXP Semiconductors (formerly Philips Semiconductors) and Blacktrace Holdings (a world leader in productising science). A PMP and PRINCE2 certified Project Manager, Alemán holds an MSc in Telecommunications Engineering as well as completing multiple postgraduate courses in Technology, Business and Project Management. “One of the things I’ve discovered during many years working in Africa is that I have learned more about project management, people management and communication protocols, by working every day on the field of battle than I have from any academic certificates,” says Alemán. “I’ve worked in the chemicals and microelectronics industries but what fascinates me about mining is the crossover in specialties and the need to keep up with all of the new innovations with technology each department, from geology to operations and processing would like to implement.”
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KINROSS GOLD
$3.3bn+ Approximate revenue
1993
Year founded
9,000
Approximate number of employees
2-3
GUIDED SPOTTING RESULTS:
100
Billion additional TONS of optimized haulage*
* Achieved at customer sites
4
DECADES of value-driven results
ADDITIONAL Loads per Hour*
150 INCREASE
%
Mean Time Between Failure (MTBF)*
Doing More to Deliver More
189 to alert IT of new business cases that require its supervision with a telematics process. Alemán sees further room for improvement with communication protocols. “The mine operation should be understood as a unique entity,” he says. “This is why a holistic approach is so important. If you upgrade one part of a system then it needs to be connected to the rest. It’s an issue that needs to be addressed in the industry.” He believes, when it comes to innovation, while mining is keen to catch up with other industries like aerospace
“ The mine operation should be understood as a unique entity. This is why a holistic approach is so important. If you upgrade one part of a system then it needs to be connected to the rest” — Néstor Alemán Esteban, Regional IT Projects Manager – Africa, Kinross Gold
there has been a pressure to adapt quickly which heightens the need for e ur o p e . b u s in e s s c hie f. c o m
KINROSS GOLD
workarounds. “The problem with mining is that it’s a mission critical operation so the pressure to make things work regardless is greater,” he says. “The extreme costs associated with exploration, production and operation mean that network downtime can destroy profitability.” Tasiast is undergoing major expansion in two phases to increase the size of the operation. IT plays a vital role in the execution of all projects and one that Alemán notes could be enhanced in the mining industry by making it a 190
part of the early stages of the decisionmaking process. “Vendors need to collaborate more in our industry, because in others like aerospace or the military they have solved the interoperability puzzle,” he says. “They have standardisation with protocols so any vendor that wants to sell any equipment or hardware systems to these industries has to work to those requirements which enhances collaboration.” Kinross has a longstanding partnership with Modular Mining. The global leader in the delivery of real-time computer-based mine management solutions for surface and underground mining operations supplies the OCTOBER 2019
“ Vendors need to collaborate more in our industry, because in others like aerospace or the military they have solved the interoperability puzzle” — Néstor Alemán Esteban, Regional IT Projects Manager – Africa, Kinross Gold
gold miner with its DISPATCH Fleet Management System (FMS). “It has optimised operations at Tasiast, saving time and reducing costs,” confirms Alemán. The system gives mines automated, real-time monitoring, management and visibility of their operations whether above or below ground. “We connect the data received to our mobile maintenance workshop,” explains Alemán, highlighting the use of predictive analytics to drive efficiencies across the fleet. Kinross also deploys Caterpillar’s Terrain applications for precision drilling, while guidance and tracking tools are used to control the stability of the slopes. “All of this is running wireless so we have to ensure all the machinery is connected across our IT network,” he says. While innovative applications are helping deliver huge operational improvements, Alemán points out that mines are traditionally run on controlled, isolated networks which, though the technology was old, made them safe. “Now with the Internet of Things (IoT) and cloud applications the temptation is to connect the mine all the way to the internet,” he says. “It’s a big security risk for mining operations opening up the control network to the e ur o p e . b u s in e s s c hie f. c o m
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KINROSS GOLD
S TAT I S T I C S
Tasiast local network
192
• +30,000 devices connected • 10 GB backbone network • +100 Km of fiber optic pulled • +110 radio frequency links • 360 WiFi access points • 280 Switches • Six telecommunication towers +45m • Nested mine wireless network • Nested ICS/SCADA Network • Nested digital radio network Tasiast servers infrastructure • • • • •
4TB RAM memory 408 logical processors +450GHz CPU +330 TB storage +12 servers hosting +210 virtual machines • P roviding services to +1000 IT users • T wo sites in high availability +hot-site mode
OCTOBER 2019
Mining communications requirements •A ccess to corporate business applications • Access to real-time communication • The importance of well-being – keeping on-site personnel connected • D ealing with medical emergencies • Large file transfer • A sset tracking and management • Onsite (cyber) security • D ata storage, back up and redundancy – insuring against power outage and extreme weather
world via the vendors.” Kinross is partnered with Cisco, described by Alemán as “among the best in the market” when it comes to networking. “All our main station network, our business network, is on Cisco. At Tasiast we are completing the migration for everything involving our WiFi infrastructure to Cisco’s industrial networks and we’re very happy with the process.” He stresses the choices made with innovations should be site specific, based on studying the weaknesses of your operations and weighing those against the opportunities to add value and should be made before committing to any hardware/ software purchases. “Mining is a complicated industry,” he concedes. “At the end of the day, the objective with things like automation and driverless trucks is to remove people from dangerous areas.” The result at Tasiast is a challenge for Alemán’s team in managing the workarounds required for a mix of technologies that may lack standardisation when it comes to communication protocols, but will offer significant advances for Kinross in its most remote operations.
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194
Deloitte Belgium leverages cognitive technology to help companies think big, start small and scale fast WRITTEN BY
HARRY MENEAR PRODUCED BY
CHARLOTTE CLARKE
OCTOBER 2019
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Kevin Overdulve, Director in Logistics & Distribution at Deloitte Belgium, shares his insight into how the disruptive power of AI is shaping the autonomous supply chains of tomorrow
F
rom the invention of the steam engine and new ironworking processes to the microchip and the nuclear reactor, the
first three industrial revolutions have each recast the world in a new mould. Now, as the world 196
plunges into a fourth transformation, driven by disruptive technologies, hyper-connectivity and customer-centric new business models, looking back across the past 260 years can grant valuable direction into the shape of tomorrow. The trends defining Industry 4.0 are reflected in the impetus that fuelled the First Industrial Revolution at the close of the 18th century: harnessing new innovations in order to increasingly improve and automate the work carried out by human labour. Previously, digitisation was a process that focused on automating manual tasks, “transactions” if you will, but according to Kevin Overdulve, Director in Supply Chain & Network Operations at Deloitte Belgium, technological advances are on track to take automation to the next stage. “Since the beginning of the 1990s, we’ve seen companies OCTOBER 2019
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DELOITTE BELGIUM
“ We’re seeing a shift towards more cognitive automation and artificial intelligence” 198
— Kevin Overdulve, Director in Logistics & Distribution, Deloitte Belgium
explore the realm of transactional automation, which led to the increased adoption of Enterprise Resource Planning (ERP) systems, basically to do the things that human beings were doing on a piece of paper, but then better, faster and more cost-effective,” he says. “Now, we’re seeing a shift towards cognitive automation leveraging artificial intelligence (AI), where today’s human decision-making processes are automated.” Ultimately, Overdulve sees this trend resulting in the genesis of the autonomous digital supply network, whereby the siloed supply chain functions of today will evolve towards a network of connections between plan, source, make and deliver, as well as adjacent business functions, all enabled by a digital core. We sat down with him to discuss this evolution: “We see that companies are moving much more towards figuring out how to make their supply network an integral part of their value proposition to customers, by taking a differentiated approach towards new ways of competitive advantage,” he notes. Overdulve’s fascination with the delicate interplay of factors in the
OCTOBER 2019
CLICK TO WATCH : ‘DIGITAL SUPPLY NETWORKS: THE DIGITAL TRANSFORMATION OF SUPPLY CHAINS’ 199 modern supply network began years
it’s so dependent on business strategy
before his career at Deloitte Belgium.
and choice of differentiation,” he
He recalls being captivated while
explains. “Because supply chains are
walking around warehouses and
complex systems in which optimisation
visiting harbours, observing how goods
across all angles is a true challenge –
flowed in coordinated (or not so coordi-
if even possible – you typically need
nated) ways from A to B. Always on
to look into making several trade-offs:
the leading edge of optimisation
‘do you prefer to hold onto stock
and innovation, the dynamic world
to maximise operational efficiencies
of consulting had Overdulve hooked
or do you follow a lean, small batch
from the start, quickly realising that
approach? Do you value service at
his passion resides in supply chain
additional supply chain cost? How do
management. “There’s no one-size-
we choose what we want our supply
fits-all answer to finding the right
chain to look like?’ That complexity
supply chain for a company, because
was very interesting to me.” e uro pe .busi ne ssc hief. com
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DELOITTE BELGIUM
CLICK TO WATCH : ‘MANUFACTURING PROCESS INDUSTRIES CAPITALIZE ON DIGITAL SUPPLY NETWORKS’ 202
Helping Deloitte’s customers
we advise clients on how to adopt
navigate that complexity is at the heart
more of a pull perspective and listen
of Overdulve’s current role, a quest he
to the customer’s needs and wants.”
believes is fundamentally guided by
By listening to what Deloitte’s clients’
the need to put the customer at the
customers truly value in the supply
epicentre of the question. “For a lot of
chain service they receive, which
companies, their supply chain is the
eventually drives (part of) their buying
final connection point to the customer,”
decision, Overdulve maintains
he points out. “What I find intriguing is
companies can tune and reconfigure
the idea that, instead of taking a ‘push’
their supply chains – plural – in order
perspective from a supply chain point
to turn it into a source of competitive
of view and saying ‘this is our supply
advantage. He notes that, with
chain, these are our capabilities: this is
increasingly demanding customers,
the service we offer our customers’,
there are three major conclusions from
OCTOBER 2019
the customer studies performed by
gain greater insight in the way how their
Deloitte across several industries:
supply chain actually operates, giving
“In a lot of the B2B, or B2B2C environ-
rise to opportunities related to
ments, reliability is really the number
efficiency, rapid responsiveness and
one service expectation and, if you
lower amounts of capital employed.
can excel at that, it really gives you
Digital transformation is supporting
a competitive edge; the second one
all three of these observations, but
is flexibility, with customers wanting
particularly the third factor. Adding
to be able to change orders or service
the AI component to the equation, the
requirements depending on the
ability to analyse and create actionable
situation at hand; and the third one is
insights from disparate and sizeable
the visibility and transparency element.”
data sets drives a new wave of
This visibility component is not only
designing, planning and operating the
a customer demand. For most of
supply network of tomorrow. Overdulve
Deloitte’s clients it is a key enabler to
sees AI as an enabler of a future where
E XE CU T I VE PRO FI LE
Kevin Overdulve Kevin is a leader in Deloitte’s global Supply Chain practice, with 13 years of experience advising multinational clients on supply chain strategy, Logistics & Distribution, and Digital Supply Networks. He works across industries, with the majority of his clients residing in the CPG and manufacturing industry. Before his current tenure of eight years at Deloitte, he worked for other global consultancies, always with a focus on supply chain management. Kevin holds a M.Sc. Business Engineering and an MBA in Supply Chain Management.
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DELOITTE BELGIUM
€565mn Approximate revenue
1845
Year founded
4,400
Approximate number of employees 206 the supply network ceases to be a linear, siloed, one–size–fits– all structure, and becomes an interconnected, collaborative, customer-centric, and above all responsive network running across an industry’s value chain. “Where I see major advances at this point in time is clients having established the ability to retrieve real-time data from internal and external source systems, to provide user-centric visibility and the ability to identify exceptions at the spot, and to offer supply chain improvement suggestions to supply chain professionals – which OCTOBER 2019
improve over time as machine learning helps to perfect courses of action to avoid the negative consequences of supply chain deviations, eventually enabling an autonomous supply chain function,” Overdulve explains. “ERPs tend to be set up in a customised manner, creating hundreds of reports to manage execution, still transactional in nature, with supply chain professionals needing to plough their way through them in order to gain insights. By the time the insight, let alone the remediation action to be undertaken, is found you’re most likely too late and the negative effect of the disruption has already happened.” Overdulve believes in platform technologies that combine crawler technology – extracting and indexing large supply chain data sets to build your company’s supply network “memory” – and the power of AI – breaking silos in favour of the best supply chain response to exceptions – to augment the supply chain workforce of the future. “Let’s take the robot out of the human and allow supply chain professionals to focus on value-adding activities,” he says. “It’s the reason I’m working alongside e uro pe .busi ne ssc hief. com
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DELOITTE BELGIUM
several promising startups, which are developing technology I believe does this very well, making real-time copies of our company’s data, which is constantly and incrementally updated to ensure a supply chain professional can receive always retrieve the most current visibility on supply chain operations.” Of course, applying cutting-edge technology with a modern, digital transformation mindset means adopting an approach that is at odds with those that businesses have traditionally employed. “At Deloitte, our 208
tagline on how to do digital transformation is to ‘think big, start small and scale
CLICK TO WATCH : ‘DIGITAL SUPPLY NETWORKS TRANSFORMING OPERATIONS FOR OIL, GAS, AND CHEMICALS’
OCTOBER 2019
changing at an increasing pace, is much more agile, acknowledging the lessons learned from failure and the need for rapid adoption and adaptation. “The ‘think big’ phase is about envisioning the art of the possible of what a company’s future supply network could look like, which technologies it needs to explore to realise this vision and which are the most apparent supply chain areas to tackle in light of continuous business challenges. We create a constantly evolving roadmap for the company. Then, the ‘start small’ element involves us solving a specific business issue, rather than trying to boil the ocean. We take one of the core fast’,” Overdulve explains. “It’s a
use cases that could drive benefit for a
different mentality compared to the
company, we match that with the right
waterfall mentality that was prevalent
technology to solve the challenge, and
before. Previously, when you went
we do a pilot. Finally, the ‘scale fast’
through large scale-supply chain
part is about finding other areas where
transformations, you went off for a year
the solution prototype can be leveraged
to design the solution, then two years
to create momentum at scale and start
to build it, another year to test it. Then,
expanding the technology for adoption
four or five years later, it actually went
across the company.”
live. By the time you put it live, everything
Overdulve sees AI as the defining
has changed so much that you might
characteristic of the supply networks
wonder whether the solution is even
of the future. “It’s completely changing
still relevant.” Deloitte’s approach to
the way we can manage supply chains
digital innovation, in a world that is
in the realm of moving towards e uro pe .busi ne ssc hief. com
209
DELOITTE BELGIUM
autonomous supply networks,” he explains. He further argues that “the autonomous supply network trend has the ability to turn how we define supply chain, or network, upside down. Do you still need periodic planning capabilities if your supply network self-regulates itself? Which organisation and skills are needed to operate the autonomous supply network? “I have two top priorities right now: one is helping companies understand the potential of cognitive automation
“ Think big, start small and scale fast” — Kevin Overdulve, Director in Logistics & Distribution, Deloitte Belgium
and available technologies in the 210
supply network, to help them gradually enter the world of the cognitive – and by extension, autonomous – supply PA R T N E R S
Valued relationships Deloitte has been acknowledged consecutively by Manhattan Associates as Global Partner of the Year, and has been working across 100+ implementations globally to deliver best of breed WMS, TMS and OMS solutions across industries and sectors.
OCTOBER 2019
Llamasoft is a leading provider of Supply Chain Design software. Deloitte has been leveraging its technology for years to bring the latest customer-centric supply chain designs to its most respected clients.
211
network. I think that’s probably the
identify and adopt the new attitudes
biggest thing that will happen in the
and methodologies that will allow them
next couple of years in terms of
to remain agile and thrive in an
transformation in my field of expertise.
ecosystem that changes more rapidly
The second is more around strategic
with each passing day.
supply chain design, and how you evaluate different supply chain archetypes in light of continuously evolving customer needs.� To maximise the benefits of the Fourth Industrial Revolution, companies will need to not only make the most of the emerging technologies in the field, but to explore, e uro pe .busi ne ssc hief. com
Zurich Insurance 212
HOW PROCUREMENT IS SET UP TO DELIVER BUSINESS OBJECTIVES, TODAY AND TOMORROW Jaime Paiva, Regional Head of Sourcing and Procurement EMEA, shares how Zurich Insurance has transformed its Sourcing and Procurement function from an order taker to a recognised business partner WRITTEN BY
AMBER DONOVAN-STEVENS PRODUCED BY
JUSTIN BRAND
OCTOBER 2019
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ZURICH INSURANCE GROUP
I
n many large organisations, the sourcing and procurement function is often overlooked.
At Zurich Insurance, however, sourcing and procurement is becoming a driving force for innovation, customer value and sustainability, while playing a key role in enabling the business to fulfil its strategic objectives. When Jaime Paiva, Regional Head of Sourcing and Procurement EMEA, first joined Zurich in 2012, the company was 214
in the midst of outsourcing its procurement function. He explains: “The retained procurement organisation was down-sized and predominantly responsible for managing the service delivery from our BPO partner. The model with the BPO was based on the services being delivered out of hubs and so we lost the proximity to our internal stakeholders.” However, by the end of 2016, the procurement team at Zurich started a full review of the model. “Zurich was about to start a new strategic cycle and we wanted to ensure we were prepared to support our new objectives,” recalls Paiva. Zurich’s Sourcing and Procurement leadership team decided to enhance the function’s capabilities in order to provide more support to the local business OCTOBER 2019
215
“ Our vision is for our procurement practices to drive positive societal, environmental and ethical outcomes” — Jaime Paiva, Regional Head of Sourcing & Procurement EMEA, Zurich
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ZURICH INSURANCE GROUP
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CLICK TO WATCH : ‘ZURICH INNOVATION CHAMPIONSHIP 2020’
units as part of the new strategy. “We
internal stakeholders, with people that
did not want to give up the learnings
would understand their needs and be
and successes that the outsourcing
able to provide specialist knowledge,”
model gave us, but we knew from dis-
says Paiva. “Ultimately, we wanted to
cussions with our internal stakeholders
have our own resources focused where
that they were expecting more than
they were needed and give the business
cost-cutting; they wanted improved
the necessary agility to make decisions
capabilities,” says Paiva.
according to their needs.”
To meet these expectations and to position the function more strategically within the organisation, Zurich started to build its sourcing and contracting
THE TRANSITION TO IN-HOUSE PROCUREMENT: “As we started discussing our plans
capabilities internally. “Our goal was
with our business stakeholders,
to offer better services closer to our
we identified recurring ‘pain points’
OCTOBER 2019
regarding the outsourced model.” Paiva
measurement has evolved since early
goes on to list the most frequent ones:
2016, increasing from a score of -22
• The BPO had limited understanding
to +74 in 2019,” says Paiva. From the
of the insurance industry and business
previous operational model, Zurich
needs from Zurich.
kept the Procure-to-Pay (P2P) lifecycle
• Excessive handovers for end-to-end sourcing and contracting lifecycles.
• Lack of dedicated human resources from the BPO.
outsourced. “We contracted Genpact for operational procurement and accounts payable for a slightly-altered, cost effective Procure-to-Pay (P2P)
To measure customer satisfaction,
lifecycle. Zurich also worked on
the Sourcing and Procurement function
improving the relationship with the
also introduced the Net Promoter Score
BPO partner. “The partnership with
methodology (NPS) to gather immedi-
Genpact allows us to focus on strate-
ate and specific feedback from internal
gic or business critical topics instead
stakeholders. “It’s very rewarding to
of having resources burned with oper-
see how our customer satisfaction
ational or tactical aspects of the
E XE CU T I VE PRO FI LE
Jaime Paiva Jaime Paiva heads Sourcing and Procurement for the EMEA region at the insurance giant Zurich. Paiva is a seasoned sourcing leader with extensive experience in direct and indirect sourcing, as well as procurement operations. Before joining Zurich Insurance, Paiva held different leadership roles with multinationals such as Siemens and Nokia in Latin America, Europe or globally. Originally from Brazil, he’s been living in Germany since 2007.
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Stop avoiding change. Start embracing it. Take the compromise out of procurement with KPMG Powered Enterprise | Procurement. Access leading procurement practices already trusted by many organizations around the world.
Change is critical for staying ahead. It is especially so for procurement steeped in old habits that could slow valuable progress. To transform to a more modern way of working goes beyond technology. It requires a much wider, strategic conversation, recognized at board level. That’s achievable with KPMG Powered Procurement, which is a cloudbased transformation approach designed to go beyond simple cost savings, to help you better manage internal and external ecosystems, as well as the networks and alliances that add value.
Stop planning for today. Start getting future-ready. These five steps could help make your procurement transformation a success.
1. Know what success means
Everyone has a different view of success – whether that’s increased efficiency or improved customer experience. It’s important to have a common vision of the business outcomes that are wanted.
2. Flex to political and business change
Procurement is becoming more complex – thanks to greater regulation, political change, and rising consumer expectations. The temptation is to avoid change and simply cut costs. That misses a big opportunity to modernize procurement and use that change to drive business value.
Imagine if your organization could deliver...
99
%
60
%
of invoices received electronically – within two months of go live1
reduction in invoice processing from 20 days to 82
US risk management and insurance services company saw the following results.3
x3 45 57
%
%
tripled spend under management in first two months
of manual invoicing moved to e-invoicing
of users adopted in first month
© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
3. Make the most of the cloud
You’re on the cloud, but that is only a first step. You need to get more from this new platform. So, decide what systems you can migrate to the cloud and how to use them to spin up new services and procedures, rapidly.
4. Bridge the digital talent deficit
Without the necessary digital skill sets it might be difficult for procurement to take advantage of new systems and technologies. Specialists are required. As they are in short supply, consider encouraging existing staff to retrain.
5. Love your data
How good is your data? Unfortunately, problems are often only discovered when it’s too late to do anything. Given the myriad of data sources within a complex supply chain, it’s critical to clean your data before any major change.
Think like your CEO
71
%
95
%
of CEOs want to transform their organization’s operating model radically4
of CEOs see technological disruption as an opportunity not a threat4
Power your way to better procurement… Get the power of KPMG Powered Procurement – with pre-existing tools and templates blended with leading practice and proven cloud-powered technology – as many enterprises already are.
> 50
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of CEOs see agility as the new business currency4
…like Zurich. Global insurer Zurich worked with KPMG member firms to transform its procurement processes. Central to the success of our collaborative approach was a three-day, interactive ‘U-Collaborate’ project launch event. This meeting established core design principles and challenges, so everybody involved was up to speed with the key aims of the program that still steer it today.
1
KPMG Powered Procurement Advisory – Case Study, 2018
2
KPMG unlock-potential-of-procurement.pdf
3
KPMG Point of View Paper ‘Stop holding back. Start tackling five common obstacles.’
4
Global CEO Outlook Survey, KPMG International 2018
5
Harvey Nash/KPMG CIO Survey, KPMG International 2018
80%
of CIOs say their digital strategy is not yet effective enough to manage this5
Discover how you can benefit from KPMG Powered Procurement. kpmg.com/poweredenterprise
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“ U-Collaborate was a tremendous success. It quickly brought everybody involved up to speed and aligned on some principles that still steer the programme today” — Jaime Paiva, Regional Head of Sourcing & Procurement EMEA, Zurich
hindered getting accurate MI on some very basic levels and spend analysis for our category strategies,” says Paiva. Zurich analysed the marketplace and selected Coupa, predominantly for its user-friendly interface. To compliment this new P2P platform, Zurich also partnered with KPMG to assist with the design and implementation of Coupa in 2017. “It was important for us to have access to best practices from other organisations as well as the technical expertise to help during the multi-year transition to Coupa, and they offered that through KPMG’s Powered Procurement assets and tools,” says Paiva.
Source-to-Pay (S2P) lifecycle in a costefficient way.”
Zurich initially focused on deploying the sourcing and contracting modules, phasing out the P2P and employee
TRANSITION TO A NEW IT PLATFORM:
expenses modules in early 2018.
Zurich were using an outdated P2P
“Moving from an on-premise system
platform. This platform was implemented
to a cloud-based solution required
in eight different countries more than
alignment on some fundamental
a decade previously and was custom-
principles,” recalls Paiva.
ised locally. “In 2017, we ran a bench-
In January 2018, KPMG hosted
mark and the conclusion was the
a 3-day event in London called
maintenance of our P2P platform was
‘U-Collaborate’ designed to increase
very complex and expensive. The
understanding of the platform, share
customisations went so far that they
and agree on core design principles, e uro pe .busi ne ssc hief. com
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ZURICH INSURANCE GROUP
and to address design and programme
The UK was the first country to
challenges. “U-Collaborate was a tre-
implement Coupa, which went live in
mendous success. It quickly brought
November 2018, followed by Switzerland
everybody involved up to speed and
in May 2019. Spain and Italy are
aligned us on some principles that still
scheduled to migrate to Coupa in
steer the programme today.”
early 2020, along with North America,
Some of the key principles agreed upon at U-Collaborate included:
• The internal customer and employee
Germany and Austria later in that year. “Coupa is the Group’s standard platform for S2P and employee expenses and
experience is paramount to the design.
we’re expecting the work to continue
• The entirety of the company would
for some time after the original coun-
function under one standardised design.
tries in this rollout are completed.”
• No customisation of technology: 222 ‘Adopt not Adapt’.
• The platform must be fit for purpose across all business units. “The success of U-Collaborate con-
THE CONTINUATION OF THE JOURNEY: “We’ve set the building blocks for the function to play a much more important role in enabling the business to fulfil its
firmed the need for excellent change
strategic objectives, evolving to a place
management and communication
where procurement is recognised
strategies,” says Paiva, “Changing an
internally as a driver of the company
IT platform for indirect spend impacts
agenda.” Evidence of this materialising
the full organisation and our supply
is the role that the procurement team
base. To add to this challenge, our end
plays in relation to Zurich’s sustainabil-
users have been using the same pro-
ity agenda. In April 2019, the company
cesses and tools for over 10 years,
announced its aspiration to be known
and were accustomed to a high degree
as one of the most sustainable busi-
of customisation and functionality. We
nesses in the world. It followed this
appreciate how difficult it is for end users
up in June by becoming the first insurer
to migrate to a SaaS application and the
to sign up to the United Nations’
need to adopt new ways of working.”
business pledge to limit the global
OCTOBER 2019
“ We did not want to give up the learnings and successes that the outsourcing model gave us, but we knew from discussions with our internal stakeholders that they were expecting more than cost-cutting; they wanted improved capabilities”
temperature’s rise to 1.5°C above preindustrial levels. Then, it set a new Operational Sustainability target to drastically reduce paper and plastic consumption, while also committing to use 100% renewable power in its global operations by the end of 2022. In early 2016, Zurich UK became the first insurance company to sign
223
— Jaime Paiva, Regional Head of Sourcing & Procurement EMEA, Zurich
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ZURICH INSURANCE GROUP
$51.6bn Approximate revenue
1872
Year founded
54,000+ number of employees
224
OCTOBER 2019
225
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ZURICH INSURANCE GROUP
up to Social Enterprise UK’s ‘Buy Social Corporate Challenge’, which committed 10 large UK companies from diverse industries to increase their spend with social enterprise firms. The ‘Buy Social’ ethos is completely aligned with Zurich’s Purpose and Values. Since then, Zurich has been working directly with organisations like Wildhearts, a stationary producer which uses its profits to fund microloans in the developing world and entrepreneurial training in UK schools; 226
Ninety, an innovation consultancy that gives 90% of its distributable profits back to charity; and From Babies with Love, a promotional items provider that gives 100% of its profit to orphaned and abandoned children around the world. “It’s important to clarify that social enterprises are not charities, but companies with primarily social objectives whose surpluses are principally reinvested in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners,” says Paiva. “Most of the companies we work with are providing career development OCTOBER 2019
opportunities to people who otherwise have limited prospects for formal employment or reinvesting a substantial part of their profits into social initiatives or charity.” Zurich’s goal is to embed this practice in the way it does business with its supply base and its supplier’s suppliers. “We have a commitment to ensure fair business opportunities and, in our experience, this is what these companies are asking us for. They don’t want special treatment, just the chance to prove their value, quality and ability to compete on equal terms with profit-oriented companies,” adds Paiva. “Our vision is for our procurement practices to drive positive societal, environmental and ethical outcomes, while playing a key role as an enabler of Zurich’s objectives. It will do this by making sustainability one of the key criteria in our sourcing decision making process.”
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227
228
How Leumit Health Services is harnessing digital transformation to provide unmatched service to its patients WRITTEN BY
HARRY MENEAR PRODUCED BY
K ANE WELLER
OCTOBER 2019
229
e ur o p e . b u s in e s s c hie f. c o m
L E U M I T H E A LT H S E R V I C E S
Eli Zimels, Director of Purchasing and Logistics at Leumit Health Services, explores the ways in which the Israeli HMO is harnessing the power of digital transformation to provide peerless patient service
I
n a business landscape increasingly defined by hyperscale conglomerates and
multi-billion dollar mergers, it’s easy 230
to forget the advantages that come with being small. Founded in 1933, Leumit Health Services is the smallest of Israel’s four health management organisations (HMOs). While it may not be able to provide treatment to the largest number of patients in the country, by leveraging technology, its employees’ extensive experience and its innate agility, Leumit is dedicated to ensuring that it consistently delivers the best possible service to the people in its care. Leumit operates under the motto: “Taking care of your future health today,” a nod to its commitment to preventative health care as an integral part of the community service it delivers. OCTOBER 2019
231
e ur o p e . b u s in e s s c hie f. c o m
L E U M I T H E A LT H S E R V I C E S
“ We may be the smallest HMO, but we like to think we’re the best in terms of the service we provide our patients” — Eli Zimels, Director of Purchasing and Logistics, Leumit Health
Leumit operates 350 clinics and around 170 pharmacies across Israel. Ensuring that essential medicine arrives on time and in the correct quantities is a mission critical priority for the organisation’s supply chain. “The medication that we’re purchasing can be life saving and if, for some reason, there’s a shortage, that’s my problem,” says Leumit’s Director of Purchasing and Logistics, Eli Zimels, who has served in his current role at the organisation for 11 years. We sat down with Zimels to explore his role
232
in Leumit’s ongoing digital transformation – a process which is seeing the HMO harness technology to further enhance its exemplary standard of patient care. “We may be the smallest HMO, but we like to think we’re the best in terms of the service we provide our patients,” says Zimels. “We’re a ‘family HMO’: our doctors, nurses and pharmacists know each of their patients personally and can give them individual care. We put a great deal of money and energy into being the HMO with the best service.” In order to pursue this goal, Leumit has OCTOBER 2019
CLICK TO WATCH : ‘LEUMIT HEALTH CARE’ 233 developed a ‘one-stop-shop’ model
one of the best standards of care in
at its clinics. “You can see the doctor,
the country.
then if you need something from the
Of course, Zimels explains, with
laboratory, you can go downstairs
a goal like this, the drive to improve
and take your blood test or your urine
and innovate is continuous. In support
test. If you need an x-ray, you can get
of improving patient service, Leumit is
one at the same clinic and, as you
pursuing three projects as part of its
leave, you can pick up your prescrip-
ongoing digital transformation.
tion from the pharmacy,” explains Zimels. This combination of diverse
MEDICATION ON DEMAND
medical services in one location, and
The project at the front of mind for
an emphasis on developing personal
Zimels and his logistics team is a
relationships between patients and
new initiative through which patients
medical staff, is the core driver be-
will – in the next few months – be
hind Leumit’s reputation of having
able to begin ordering their prescripe ur o p e . b u s in e s s c hie f. c o m
L E U M I T H E A LT H S E R V I C E S
234
tions online and have them delivered
and which regulations they have to
to their homes. “We’re going to be
change so that we will be able to be-
the first HMO to do this,” he ex-
gin making deliveries.”
plains. Breaking ground in this way isn’t without its challenges, Zimels
DIGITAL SUPPLY CHAIN
admits. “In Israel, the regulations on
At a time when Leumit is embarking on
something like this are very strict, so
an expansion of its logistics respon-
until now nobody was able to offer a
sibilities as significant as prescription
prescription delivery service. When
deliveries, Zimels and his team have
you innovate like this, you have to
needed to harness every tool at their
start from scratch and that leads to
disposal to improve the consistency
challenges. We’ve had to have a lot of
and quality of the HMO’s back end
sessions with the Ministry of Health
supply chain function. “We’ve just
to explain what kind of help we need
finished implementing SAP across
OCTOBER 2019
our logistics and purchasing models,
of B2B interactions moving more
finance, budgeting and our mainte-
towards an all-digital format, and we
nance model for all the equipment in
think that SAP will get us part of the
the HMO,” he says. The implementa-
way towards closing that circle, but
tion of an industry-leading ERP solu-
we’re also going to need to collabo-
tion will, Zimels believes, go a long way
rate with our suppliers in a way that
towards increasing transparency and
results in an improved experience for
decreasing disruptions in Leumit’s
the patient.”
supply chain, but the organisation’s reneed to be an object of focus. “Often,
IMPROVING PATIENT CARE AND CUSTOMER EXPERIENCE
our suppliers don’t volunteer the fact
“One of the most common requests
that there’s going to be a problem or
from our cardiologists is that, when
a shortage,” he says. “Mostly, we find
they take an EKG of a patient, they
out after we send an order through –
are able to easily access that pa-
that’s the most common disruptor of
tient’s previous EKGs for comparison,”
our supply chain. We’re seeing a trend
Zimels explains. Digitalising patient
lationships with its suppliers will also
E XE CU T I VE PRO FI LE
Eli Zimels A veteran supply chain executive, with over 25 years in operations, logistics and procurement, Zimels has worked as the the Director of Logistics and Purchasing for Leumit HMO since 2008. Previously, he held executive roles at BEZEQ, and Donna. He is a member of the National Council for Logistics in the Healthcare System and a guest lecturer in procurement and logistics.
e ur o p e . b u s in e s s c hie f. c o m
235
TIME IS A GREAT STORYTELLER The story of DYN has 30 years of experience as a leading medical devices distributor in Israel. Together we can write the next chapter. Learn More
+972-4-6175300 www.dyn.co.il/en-home
data for the sake of easy access, dis-
where it will then be available to rele-
tribution and backup is the third major
vant doctors, and even to the patients
project that Zimels is working on cur-
themselves. This will further support
rently. In the end, he hopes medical
Leumit’s current digital diagnostic and
data will be transferred directly from
support services, which allow patients
the equipment to the HMO’s database,
to schedule appointments, consult with physicians via video conference, access their medical records and receive their lab results, all from the comfort of their homes. “You’ll be able to have a video appointment with your doctor, who will be able to send your lab results to your computer, recommend medication and arrange to have it sent directly to your home,” says
OCTOBER 2019
237
— Name of Person, Position and company e ur o p e . b u s in e s s c hie f. c o m
L E U M I T H E A LT H S E R V I C E S
LE U M I T O N L I N E S E RV I C E S
Leumit offers a large array of medical and administrative services via the internet and smartphone without having the patient having to physically go to a medical center. The service allows patients to:
238
• Make appointments for primary care doctors and specialists
Zimels. “We’re closing a circle so you, as a patient, don’t even have to leave your home.”
THE FUTURE With plans for the first home deliveries of medication to begin around the end of October, before fully rolling out in 2020, and increased digitalisation of both the organisation’s strategic purchasing strategies and patient documentation, Zimel’s is confident that the coming years will see Leumit and its supply chain go from strength
• Consult with physicians • Obtain laboratory results • Receive information on allergies to medications and much more • See the medical record on line • See all x-rays that are done in our medical centers
$1.47bn+ Approximate revenue
1933
Year founded
3,200
Approximate number of employees OCTOBER 2019
to strength. Reflecting on those
“By giving us a low price, we provide
strengths, he reflects that “first of all,
them with early entry to the market,
“We have great workers. Our work-
sometimes ahead of the National
ers are highly-educated, have a lot of
Basket. A small HMO has an advan-
experience, and are innovative and
tage doing this,” Zimels explains.
willing to learn. Secondly, we are very
This combination of agility, flex-
flexible as an organisation: our stra-
ibility and ongoing digitalisation will,
tegic purchasing department is very
Zimels is confident, continue to see
autonomous. We don’t need to have
Leumit provide a standard of ser-
lots of committees to approve things
vice to its patients that is unmatched
internally.” Externally, Leumit’s size
among its competitors.
also contributes to its flexibility, particularly when negotiating with pharmaceutical companies for purchases.
239
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240
Accelerating a sustainability drive with Schur Flexibles Group WRITTEN BY
SEAN GALEA-PACE PRODUCED BY
CAITLYN COLE
OCTOBER 2019
241
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SCHUR FLEXIBLES
Martin Berlekamp, Head of Sustainability at Schur Flexibles Group, discusses the sustainability initiatives his firm is undertaking to help achieve a greener future
S
howcasing that actions speak louder than words, Schur Flexibles Group has proven how much of a priority sustainability is for
the firm. Having backed up claims that sustainability is at the forefront of decision-making following its recognition as the winner of FlexiClose’s 2018 German Packaging Award in Sustainability, Schur 242
Flexibles has established the 5R approach to a greener future: Recycling, Replace, Reduction, Renewal and Responsibility. To help achieve this goal, Martin Berlekamp, Head of Sustainability at Schur Flexibles Group, believes his company’s determination to transform the handling of plastics has been key. “We see our current sustainability transformation as a challenge because society is keen to change the treatment of plastics,” says Berlekamp. “As packaging takes up a high percentage of plastics being produced, we have to find a responsible way to handle sustainability along the value chain. As Schur Flexibles is well prepared with its current and new product portfolio, we can help our customers fulfil their sustainability goals which are often much more demanding than the ones requested by the legislation.” OCTOBER 2019
“ We see our current sustainability transformation as a challenge because society is keen to change the treatment of plastics” — Martin Berlekamp, Head of Sustainability of Schur Flexibles Group
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SCHUR FLEXIBLES
“ In addition to our 2025 target, we also have one for 2020 — we want to provide a recyclable solution to all markets” 244
— Martin Berlekamp, Head of Sustainability of Schur Flexibles Group
Schur Flexibles aims to make the majority of its products recyclable before 2025 and already possesses an array of recyclable products in its portfolio, with the company looking to ensure its product materials are responsibly sourced. Schur Flexibles is considered the best in the market in raw material consumption along with producing primarily recyclable packaging. “Sustainability is a clear management target and the company provides the resources to follow up,” affirms Berlekamp. “In addition to our 2025 target, we also have one for 2020 — we want to provide a recyclable solution to all markets. The aim now is to meet our short-term target and devise a strategy, project plan and ensure resources are in place for the 2025 one.” Although Martin Berlekamp admits that his firm’s 2025 sustainability targets are challenging, the firm is determined to align to the requirements of large supermarket chains. “There’s a lot of work to do. If you look at Carrefour, Tesco, Aldi or Lidl, they have their own sustainability programmes,” he says. “These are the
OCTOBER 2019
CLICK TO WATCH : ‘SCHUR - OUR MISSION’ 245 targets that customers would like to
– the proven concepts and estab-
see in their own shops. As a flexible
lished materials, the R&D pipeline,
film supplier, if you’re not capable of
management and entire staff of Schur
delivering recyclable solutions, then
Flexibles will lead us to being the
you won’t be in operation for very long.”
number one supplier of sustainable
Fritz Humer, Chief Sales Officer
packaging solutions. This is the most
(CSO) at Schur Flexibles Group, states
important part of the growth strategy
the company’s growth over the past
of the company.”
few years has been significant, and
“Everyone has become a lot more
the future is even more encouraging.
aware of what’s going on in the oceans,”
“We’re on an exciting journey with
says Berlekamp. “Since that time,
customers, markets and society having
customers are more sensitive about
a new way of looking at packaging
packaging materials, particularly
materials,” says Humer. “As a responsible
plastic ones. It’s become a key reason
company, sustainability is in our DNA
why the whole community is now e uro pe .busi ne ssc hief. com
NIPPON GOHSEI offers eco-friendly and recyclable resins, SOARNOL™ (EVOH) and Nichigo G-POLYMER™ (BVOH), and provide a high level of technical support to create tailor-made product solutions. www.nippon-gohsei.com
We look forward to meeting you! Building 4.01
looking for sustainable alternatives.
With a clear idea of how to reduce
They’re coming into a circular economy
plastics consumption, Berlekamp
and it has been one of the biggest chal-
believes the best way to tackle
lenges because, in the past, the flexible
reduction is to utilise the thinnest
films industry was really developing
film to help reduce harmful emissions.
thin films using multiple polymers.
“The carbon footprint impact of packed
Recyclability is not a given if you have
foods is around 97%, with the addition-
different polymers, and this is why
al 3% coming from the packaging film,”
we’re trying to do more for less.”
says Berlekamp. “Nevertheless, we
OCTOBER 2019
have to take care of that 3% because
companies and associations that
if we reduce that to the sustainable
represents the entire flexible packag-
and even recyclable possible solution,
ing supply chain. “CEFLEX is very
then it enables us to decrease the
important and has an influence on
carbon footprint in the easiest way.”
European legislation because people
As a member of the CEFLEX and
are now listening,” he says. “I believe
Save Food initiatives, Schur Flexibles
it’s good that we have something
is accelerating its sustainability drive
independent coming from the industry
through these organisations. CEFLEX
and the value chain of packaging to
is the collaborative initiative that
examine how we can change the future
features a consortium of European
of packaging.” With one third of all food
E XE CU T I VE PRO FI LE
247
Martin Berlekamp Berlekamp studied chemistry at the university of Münster Germany. After finishing his doctoral thesis, he became a postdoctoral fellow to Finland. His first industry position was in a SME as “Head of Application Technology.” In 1999, he changed to a manufacturer of rigid films. During the following 12 years he had different roles in the company – always in the food packaging area. As the company expanded, he was responsible for the integration of the sites for food packaging films in Finland. Further projects called for additional expat periods in Spain and Portugal. Berlekamp joined Schur Flexibles Group as the Head of Sustainability for the entire Group in 2018 and began the challenge of facing the new Plastics Packaging Waste Directive as well as the high awareness of customers and the society regarding plastic packaging.
e uro pe .busi ne ssc hief. com
SCHUR FLEXIBLES
wasted or lost, Save Food exists to drive innovations, promote interdisciplinary conversations and generate solutions to debates across the supply chain. In a joint effort with industry members, politics and civil society, the organisation seeks to collaboratively solve food wastage. “We can help to reduce food waste by ensuring that food is packed with a suitable and recyclable packaging film because it will have a bigger impact on cutting our carbon footprint than just reducing 248
plastic use,” notes Berlekamp. In order to ensure that food is packed correctly,
€520mn Approximate revenue
2012 Year founded 1,750 Approximate number of employees
OCTOBER 2019
Schur Flexibles has established a key partnership with Nippon Gohsei, a group company of Mitsubishi Chemicals and a producer of EVOH and PVOH providing an appropriate barrier between the product, oxygen and substances such as odd flavors that could contaminate the product. “You need a barrier against oxygen in order to protect valuable proteins like in fish, cheese and meat. We’re working closely with Nippon Gohsei - also a member of CEFLEX - in order to
“As a responsible company, sustainability is in our DNA” — Fritz Humer, Chief Sales Officer (CSO) of Schur Flexibles Group
249
develop tailor-made barriers and
bigger companies and two smaller
integrate them into our films.”
ones. We’re ambitious — the target
With a drive to grow through acquisi-
is for Schur Flexibles to be among the
tion as well as promoting growth
top five players in Europe. We have
organically, Berlekamp affirms the
to try and balance our growth in packag-
company’s target is to become one
ing materials and look at how we can
of the biggest companies in its field
gain market share from the competition
in Europe. “We positioned ourselves
following the launch of new products
in the market environment with our
in the market.”
sustainable and recyclable solutions early and have become – we’re proud to say – the best-in-class,” he affirms. “Since I joined, we’ve purchased two e uro pe .busi ne ssc hief. com
Just in time to say goodbye.
Keeping you in the air. The best time to develop services for tomorrow’s technology is today. That’s why we’re doing that now — along with integrating new models, materials and technologies in our portfolio as quickly as possible. Our goal is to keep your aircraft off the ground, tomorrow as well as today. So let the future arrive: our services will be waiting. Talk to us. Lufthansa Technik AG, marketing.sales@lht.dlh.de Call us: +49-40-5070-5553
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