Financing the Future .InterconnectedWORLD World
Is this really reality? AR takes us to the next step
Robots... in Turkey
Also in this issue... Spring 2019 Start-up funding — venture, angel or IPO? • The business of gaming How green is your juice? • Future-proof career choices • Motoring: Bugatti GBP 9.95 | EUR 14.95 | USD 15.95 BREITLING.COM BREITLING.COM
Letter from the editor
BOEING has had a terrible start to 2019, commercially and in humanitarian terms, with a crash in Ethiopia claiming the lives of all those aboard one of its 737 Max aircraft. That tragedy came just months after a 737 Max disaster in Indonesia. The delay in grounding the World's Max fleets in the wake of those catastrophic events was the first ethical hiccup; the blanket grounding that should have come immediately was delayed while the American Federal Aviation Administration dallied, and theories were floated about what had, or hadn't, caused the disasters. Unilateral decisions to ground the planes came from individual operators, before regulators or Boeing took a stand. But another, even less defensible, ethical decision had been made by the company, and those carriers purchasing the Max planes, before gaming, and loot. Loot is a lively word, conjuring up any accident had occurred. images of doubloons, pirates and treasure chests, It was revealed, after investigations into the burglars' swags of silverware and pearls, precious safety of the 371 Max aircraft in circulation — things pillaged in war. There are a few lively words post-accidents — that there had been an “optional in that sentence, and while pillage, plunder and extra” warning system for the Max planes. In a bid doubloons may have fallen into disuse, loot is to get the grounded craft back in the air, Boeing making a comeback. announced that the optional safety feature would That's largely thanks to the gaming industry, now be installed as standard. which has found a nifty value-adding scheme in This is reminiscent of the early days of ABS “loot boxes” — more optional extras, this time (anti-locking braking systems) in cars. The for players wanting to up their game. Gaming is technology existed, and had been proven to be an already bigger than music and movies put together. effective, potentially life-saving development. And With around 2.3 billion gamers across the globe, yet, for years, ABS was also an optional extra. If companies, corporations, niche operators, software the technology exists to make travel safer, whether firms and nerds are colliding in a mighty boom. on land or by air, can it in any way be considered BV asked game-players, game creators and morally responsible to withhold a feature — industry experts where we're at, and where we're designed to increase safety and reduce the risk of going. From Pacman to Pokemon to loot boxes, fatalities — unless more money is paid? Virtual Reality, Augmented Reality and beyond, it's How can human safety be held to ransom? And a buzzing sector. See our articles starting on page how can the decision on whether to fork out the 30 which bring you a taste of an empire that has extra cash be taken at the time of purchase — been building in the background — and seems without our knowledge or agreement — by the ready to explode. carriers who are responsible for our safety? Here in Europe, Spring has sprung and the Boeing is a commercial enterprise, and profit — grass is riz. Enjoy the sunshine, northern hemi, in any business — is important. But how callous has happy Autumn to the rest of you. And enjoy this our society become that profit takes precedence issue of BV, wherever you are. Happy reading. over safety, and that we accept that as normal? Hal Williams, editor Enough of the serious stuff. Let's talk about [email protected]
.WORLD Correspondence
It all flows together... What a heart-warming read in the most recent issue of BV (Winter 2018-19)! I thoroughly enjoyed your reporter Leah Smith's story on the initiative of film star Matt Damon and environmental expert Gary White (“It all flows together for Damon, White in win for water”, pp 52,53). I applaud Ms Smith, and the magazine, for ensuring that not all of your pages are dedicated to finance, negotiations, tech and the workplace. Those are fitting subjects for a publication such as yours, but it's nice to see some variety, and gratifying to learn that environmental awareness is alive and well in the newsroom. I also appreciated the short piece on one of my favourite actors, Antonio Banderas, in the same issue; encouraging to see fame being used as a platform for good. Well done to these stars of the silver screen!
Bob Cameron Fife Scotland The editor replies: Thanks Bob, praise always gratefully received here at BV. I feel bad correcting you on one point: it's Heather Leah Smith (Heather to her mates). And yes, she always has an eye on matters green, growing and natural, which we endorse and encourage. Our aim is to give praise and raise profiles wherever someone's fighting the good fight. HW
Cheikh Bamba
I noticed a story about Cheikh Amadou Bamba in your magazine (Winter 2018-19). An inspiring story of an inspiring man, and a nice step away from the usual run of whiz-kids, power-brokers and data-peddlers. His followers, the itinerant sellers, also deserve mention. There are a lot of these migrant workers here in the south of Spain, and they are never pushy, always polite, and they always share a smile.
Liam Walsh Marbella Spain
Territory or colony?
Thank you for your article on Gibraltar in the Winter issue of BV. Both the main article on the rare accord between Spain and the UK, and the piece to the side explaining the history of “The Rock” were very informative. But there are one or two pieces of information missing. Did your writers know there are more companies registered in “Gib” than there are people living there? And that many of these companies do their business in Spain but don't pay taxes to the Spanish hacienda? And the writer of the historical piece makes it sound like we just handed over Gibraltar when signing the Peace of Utrecht, when in truth it was taken by force during the preceding war. Finally, as we say here, ¡Gibraltar español!
Antonio Suarez Jiménez Sevilla España
10 Holdun Family Office We at Holdun Family Office are proud to have been voted Best Family Office, Caribbean, 2018, for the second year in a row! A big thank you to Business Vision for their great work and continued support!
Brendan Holt Dunn Nassau Bahamas
The editor replies: Right back at you, Brendan, and congratulations to all at Holdun. A pleasure getting to know you and your organisation.
HW Editor Hal Williams
Assistant Editor Janet Newbury
Executive Editor Susan Shaw
Pictures Editor and Layout Richard Thomas
Contributors Heather Leah Smith Jason Agnew Business Vision Nabil Abu El Ata .WORLDBrendan Filipovski Hannah George Naomi Snelling Lakshay Mathur Devin Gharibian-Saki Leilah Schubert
Cover Art Richard Thomas
Distribution Manager Thomas Terrell
Subscriptions Max Pragnell
Commercial Director Graham Church
Publisher David Eyres
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.WORLD In this issue 16 16 | Fuelling start-ups 19 | Venture forth
20 | IPOs for the people
22 | Stand-up India 30 | Augmenting your reality 26 | Top jobs in 2019 34 | It isn't just a game 28 | Work experience 36 | Artificial intelligence
40 | Private equity trends
22 42 | How green is your juice?
46 | Brands fighting the good fight
50| COO blimey!
51 | Changing roles for CIOs
52 | Digital transformation
32 56 | Workplace communication
46
68 1414 58
66
58 | Money worries?
60 | 万里汇 — explained...
62 | CRISPR and the gene genie
66 | Finsbury Park workspace
68 | Alexandria Ocasio-Cortez Contents 71 | Africa's services trade
72 | Robots in Turkey
74 | A sweet balance
76 | Be wise and digitalise 79 | Finding gender balance XX 82 | ICC trade tariffs 68
84 | Sustainable housing
82 98 Summer 2018 Issue • www.bv.world 86 | Lending takes a leap
90 - 97 | BV Awards Business Vision Business Vision 98 | Mind the GAAP!
102 | Big bird threatened
103 - 110 | BV Motoring 15 .WORLD Sending a start-up into the stratosphere requires fuel (three guesses which type)
There are a few funding options for new businesses, as BRENDAN FILIPOVSKI reports
START-UPS are the rock stars up has the money to get you of the small business world. to the point where you are Everyone wants to find (or be) the It isn’t easy generating revenue. Your most next unicorn — but it isn't easy to important resource may be free go from your garage to greatness. to go from (you and your co-founders), The early days are the hardest; but you will probably need you may be desperate for cash, your garage to money for equipment, product- but no one will believe in you. If development, manufacturing you can find a way through, then greatness costs, marketing, any additional at some point you will reach the hires, and premises. decision stage of trading equity in You may also want to pay your company for faster growth. But not everyone has the yourself a small living wage. If you Every founder dreams of being expertise, or the time, to go it do not have enough to cover all the next self-made tech billionaire alone… and succeed. these costs, then you will need to build a company from the In the beginning, the key outside money, and fast. ground up. question is whether your start- One thing that can help you in
Governments in many countries are encouraging banks to make loans to innovative business 16 Angel investors are rich individuals willing to take a risk on an up-and-coming entrepreneur these early days is your personal Typically, pre-seed funding ranges business. There is also a small, savings. This, of course, must be from $10,000 to $1m. Typical but growing, venture credit and prepared in advance. pre-seed funding sources are the private debt market. Five years ago, you may not Three Fs (Friends, Family, and Angel investors are rich have formulated your exact start- Fools), angel investors, personal individuals willing to take a risk on up idea, but if you had the dream loans, and funds from incubators an up-and-coming entrepreneur. of founding a business you might or accelerators. Often, they made their money have been smart enough to start The Three Fs are a good from a start-up, and want to “give saving. A practical target may be source of funds at the pre-seed back” with expertise and money. six months of salary. Accumulated stage, because the first two, at Angel investors are willing to holidays that can be taken or least, know you and what you are take a risk because this is often cashed-out can also serve as start- capable of. the most lucrative time for them up capital. LACK OF REVENUE to invest. At later stages, angels are Another way to help yourself in They may be willing to invest, typically outbid by venture capital the early days is to start as a “side- despite the lack of revenue or funds. hustle”. A side-hustle is when you finished product. Angel investors Incubators and accelerators start your business while keeping and incubators typically require can be a good source of funding your day job. equity; friends and family are because they typically have formal Obviously, your time is highly more likely to lend you money as development programmes that restricted (goodbye nights and debt. allow them to ascertain potential weekends) but keeping your full- The downside is the for success — and they can help time job provides you with some importance of managing you to reach that potential. Spring 2019 Issue • www.bv.world early finances while you evaluate expectations — and the strain on Other sources of pre-seed things. relationships if expectations are funding are crowdfunding and If you have no personal savings not met. equity crowdfunding. This is the (or they have been exhausted), A personal loan from a use of websites, like Kickstarter, to Business Vision you find yourself at the pre-seed- bank is another potential form connect with potential customers funding stage. This is the stage of debt financing. Times are who are willing to help finance where you need extra money to changing, and governments in product development in return finish your product development many countries are encouraging for a future discount, or in return and get your product to market. banks to make loans to innovative for a small amount of equity. 17 .WORLD
Oculus is a good example: it went to trade-off for faster growth? If your start-up faces from raising $2.4m on Kickstarter And is faster growth necessary to competition from a similar in 2012 to being bought by fightoff competitors? product that could beat you to Facebook for $2bn in 2014. Seed funding is typically a critical market share, then the To prepare for the pre-seed provided by venture capital funds speed of seed funding is the way funding stage, a good business in larger amounts — $150,000 to go. If you lack expertise and plan, a catchy elevator pitch, and to $10m — but they can also network assistance, the same is a demonstrable prototype are provide expertise and industry true. While giving up equity hurts, needed. You may or may not be a connections. In return, the 10 percent of a multi-million natural salesperson, but details on venture capitalists take equity of dollar company is better than 100 your product, market, consumers at least 20 percent. percent of a smaller one. and growth-needs make your case BOOTSTRAPPING Once your revenue is booming more convincing. Bootstrapping is where you and you are building significant When you reach the point continue to expand using your market share, you are ready for where you have a minimum viable growing revenue. the big rounds of investment. product (MVP) and growing The growth trajectory is of By this stage you are well on revenue, then you are at the course slower, but you retain your way to stardom with the junction of seed funding and equity and control. There is also potential for a big pay-day in the bootstrapping. less pressure to generate revenue, forms of a buy-out or an IPO. The two key questions here are: and less potential interference in And then it's your turn to be 18 How much equity are you willing decision-making. an angel investor. Venture forth and prosper with this funding advice — pure passion isn't enough
By HANNAH GEORGE of them, there is another crucial MANY entrepreneurs don't seem step: perfect your pitch. to get it: a great business idea and Careful With a business plan, potential passion aren't enough for success. investors will appreciate that you Proper funding is the golden are at least familiar with financial ticket. planning will metrics. Private equity, angel investing Create a clear business plan and venture capital are three prevent you that highlights the following: investment options that most • The problem you're people look into. Venture capital from wasting solving, and the nature of is the ideal investment option for market opportunity your you if: time and business will address. • You're running a start-up • Your solution/service/ company with potential product for unmet for high growth energy market demands, and • You're looking for how it differs from other substantial investment available options. • You need business important to some venture • If possible, your market expertise and capitalists, others prefer strategy: how you intend management assistance investing in companies to roll-out your product to • You're okay giving up a that are closer to home, or capture market share. portion of the company are in specific locations. • Put together a set equity • Some investors will not of realistic financial There are certain steps that can invest in your business projections on costs and be taken to boost your chances if they have a portfolio revenue. of securing venture capital from company that is similar to • Introduce your team and the right investors, and on the yours. highlight its strengths and best possible terms. But raising Careful planning will prevent commitment. venture capital is not always easy; you from wasting time and After writing a clear business it can be time consuming, risky, energy, and good research plan, take your time to think about and it can lead to costly mistakes. resources exist. Investors' websites what you will say, and how you will Exercise caution. allow you to view investors' say it when pitching. You need The first step is to do your backgrounds and investment content for your presentation, research. It is a mistake to pitch approach, as well as the list of as well as the right tone for your your business idea to every portfolio companies they have audience. investor you come across. Identify invested in. Law firms are useful; Demonstrate how you intend the most promising investors. you can get recommendations to use funding to meet milestones Consider these aspects: from attorneys that work with that will be crucial for the success Some investors will focus venture-backed companies. of your business.
• Spring 2019 Issue • www.bv.world on particular industries or Bankers and accountants can also Also remember to sectors. Find an investor help you build a list of the most communicate parts of your that focuses on your type promising venture capitalists. business plan, especially how your of business. Other entrepreneurs can help by business will make a profit. • Some investors will only giving you recommendations. What lies between a great Business Vision invest in startups, while Once you're through with idea and a successful business is others will invest in mature your research and have made a list very often cash. When securing businesses. of potential investors to approach, financing for your start-up, weigh • While geographic you're ready to plan meetings with positives and negatives to help you proximity may be less them. But before you meet any to make an informed decision. 19 .WORLD IPOs for the people! Change of tack, but public access just as important as it ever was
Venture capital may be flavour of the month, but there is still a place for stock market launches, as BRENDAN FILIPOVSKI reports
ARE THE halcyon days of US tech entrepreneur. Back in the tech IPOs returning? Investors 1990s and 2000s, every kid wanted are salivating at the prospect of to be the coder that started in several large tech IPOs this year, Tech firms no the garage and rode their own including Uber, Pinterest, Slack, company to an IPO and world and Palanthir. longer in a domination. The greater speed to With the Dropbox, Spotify, and the point of scaling and the ability Eventbrite IPOs of last year, one rush to list to exit a company at or soon after could be forgiven for believing buy-out — with handsome rewards that IPOs have returned to rude — has meant that lightning does health. While the IPO numbers not have to strike just once. A new are not in the stratosphere of the reapply a healthier level of scrutiny breed of entrepreneurs aims to 1999-2000 tech bubble, talk of to tech companies, but any loss hurl multiple lightning bolts to unicorns, fin-tech, and blockchain of appetite has been rectified the ground; champions of this abound. The numbers, however, with the successes of Amazon, approach include Elon Musk do not match the hype. Tech Facebook, Google and, more (Zip2, Paypal, Tesla, and SpaceX), companies are shunning IPOs, recently, Roku, Snap, Dropbox, Jack Dorsey (Twitter and Square), or at least delaying them to much Spotify, and others. In fact, and Jonah Peretti (Huffington later in their development. So investor demand for tech IPOs Post and Buzzfeed). where are all those baby unicorns has probably now outstripped Max Morse getting their hay? supply. Tech firms no longer rush The 1999-2000 tech bubble to list; instead they have shunned marked the peak of tech IPOs in IPOs for other sources of finance. the US (see chart opposite page). Tech companies have shunned Internet companies were market IPOs because speed has become darlings, and every second listing king. Unlike manufacturing was for a company with a dot-com companies that need to build at the end of its name. Companies factories, tech companies can like Infoseek, Homegrocer and upscale fast, in virtual space. The theglobe.com all posted massive cost of producing more software first-day gains — but have since or adding another user to a disappeared. mobile phone app is often close After the bubble burst, tech to zero. IPOs fell dramatically and have Tech companies need to move remained at a new lower steady- fast so they can stay ahead of Jonah Peretti state. There were more tech IPOs competitors, and IPOs are just too in 1999 (272) than there was in all slow. It is quicker to develop a tech Tech companies have also the years between 2001 and 2018 company to a point where it can be shunned IPOs because they do (221) (IPOs with a listing price of sold to a bigger company than to not like the extra responsibilities 5 USD or greater). grow a company organically and that come with publicly listed The decline in tech IPOs has then meet all the requirements to companies. The Sarbanes- not come about because markets publicly list it. Oxley Act of 2002 greatly lost their appetite for tech stocks. Strengthening this preference increased general regulation for Markets certainly sobered-up after for buy-outs over IPOs is the public companies. Disclosure 20 the bubble burst, and started to elevation in status of the serial requirements force tech *excludes IPOs with listing price of less than $5 USD Source: Jay R. Ritter, Univ. of Florida companies to show their hand increased from 500 to 2000. aggressive approach in managing when they would prefer secrecy. The amount of venture and scaling start-ups. One size The increased burden of public capital funds available has also does not fit all. The article says listing has also given rise to a trend increased making venture capital that some investors are now of tech firms de-listing. Tech cheaper and more available to offering revenue or profit-based companies do not like disclosure tech companies. Tech companies loans to start-ups instead of taking requirements. Research and are not as reliant on IPOs for a traditional VC approach. Watch development are typically key to capital as they once were. In 2018, this space. the future competitive advantage venture capital firms invested The upcoming IPOs of of a tech company. around $274bn in companies. Uber, Pinterest, and Slack show Listing requires expensive This type of investment in that IPOs are still important to lawyers. Execution of an IPO tech companies has become so tech companies, despite being requires investment bankers, who popular that many of the world's eclipsed by venture capital. Public typically take a percentage of the largest traditional companies have excitement also shows that IPOs capital raised as an underwriting started venture capital funds — are still important to the average fee. The cost of IPOs has pushed Johnson and Johnson, General investor. Despite this new world of tech companies to use cheaper Electric, Time Warner, and even ETFs in 99 flavours, public access forms of capital. the Campbell Soup Company. to venture capital funds and their In contrast to IPOs, venture Uber and companies like it have investments remains limited. capital has become easier for tech had multiple rounds of hundreds IPOs of tech companies have companies to access. While the of millions of dollars in venture become more important to the burden and costs of public listing capital funding — long before public — at the same rate as their Spring 2019 Issue • www.bv.world have grown, venture capital has an IPO was deemed necessary or numbers have decreased. IPOs become more flexible. desirable. are worth championing, even if The National Securities Venture capitalists, however, for reasons of equity alone. With Markets Improvement Act of are being forced to enhance their the promise of ever-increasing Business Vision 1996 made it much easier for offering. A recent report in The technological disruption, the private firms to sell shares in their New York Times by Erin Griffith public needs access to the giant company. In 2012, the maximum suggests that a small number tech companies of tomorrow. number of allowable investors of start-ups are starting to shun They cannot just be the domain in large private companies was venture capital because of their of the super-rich. 21 .WORLD New policies for a young country: India in mainstream with aid for entrepreneurs
By LAKSHAY MATHUR past. In 1991, the Indian sustainable economic growth and ALMOST 65 percent of India's government introduced the New generate employment on a large 1.3 billion population is below the Economic Policy. Since then, the scale. A 19-point action plan has age of 35, and government alone country has come a long way; been proposed which will enable cannot satisfy the career prospects it now has several schemes to easier patent filing, establishment of more than 600 million young provide funding opportunities. of incubation centres, tax people. Stand-up India was launched exemption on profits, and ease of This is where entrepreneurship in 2016, a scheme for financing setting up a business. According comes to the fore. The go-getters SC/ST (scheduled caste and to the latest report, the incubation creating their own enterprises are scheduled tribe) and female centres formed under the Atal national assets who give back to entrepreneurs. It offers bank loans Innovation Mission will provide the community — and pave the of $14,000 to $140,000 to at least infrastructure and assistance to way for others to follow. one SC/ST member or woman new and growing start-ups. Entrepreneurship is not borrower per bank branch. A grant-in-aid of $1,401,000 something new in India. Before The enterprise receiving funds would be provided to each 1991, the business community should be in the manufacturing, Established Incubator Centre had the necessary ecosystem to services or the tertiary sector, (EIC) for a maximum of five create start-ups. Their success and a controlling share of at years to cover the capital and could be attributed to the troika least 51 percent should be held operational costs in running of licences, government contacts, either by an SC/ST or woman a centre. Eight established and an understanding of how the entrepreneur. The scheme is incubators have received a total bureaucratic system works. expected to ease pressure on job scale-up grant of $4,763,000. The economy was not open reservations. Under the biotech seed fund, to the outside world and was Stand-up India intends to $1,540,000 has been sanctioned, reminiscent of India's colonial build an ecosystem that will drive with $980,000 distributed to 11
Stand-up India intends to build an ecosystem that will drive sustainable economic growth 22 bio-incubators. A fund with a (slashing it by $421,000). There corpus of $21,008,000 has been was no additional allocation for approved. More than 710 start- healthcare, or incentives for ups have received benefits from science and technology. the bio-incubators under several There are some structural programmes. The Department problems, too. Registration of of Biotechnology (DBT) has property is a tedious and costly sanctioned $56,168,000 to four process. Exits in start-ups were of five bio-clusters. The four just two percent of those in the entrepreneurs have joined US. The number of intellectual America's Harvard University properties (IPs) registered in under the Bharat-Boston Biotech 2018 equated to just three percent Gateway. of those registered in the US. The most noticeable thing in The 39,000 active start-ups that the action plan is the “fund of make India the second largest funds”, around $1,397,000,000, hub of the start-ups, but the key to provide funding support. The indicators (as mentioned above) aid will be provided through Piyush Goyal are stating a completely different Small Scale Development Bank story. of India (SIDBI). The corpus will optionally convertible debt. But the 2019 budget be released, over two Finance India's interim Finance has something for Indian Commission cycles, by 2025. Minister, Piyush Goyal, said in entrepreneurs. For start-ups in The scheme has attracted several his budget speech that “India has the entertainment industry, a investors. become the second-largest hub of single window clearance for movie SoftBank, a Japanese firm, start-ups”. shooting is now available to all has pledged to invest $10bn and The major disappointment Indians (it was previously limited Oracle has announced it will for the start-up founders was to foreigners). Another bonus is establish nine incubation centres. that there was no announcement the creation of a level playing field Of the applications received, of exemption on “angel tax” for the micro, small and medium- 14,036 have been recognised as (tax payable on capital raised sized enterprises, providing a two start-ups by the Department of through issue of shares). For a percent rebate on loans of up to Industrial Policy and Promotion long time, start-ups in India have $140,000. There was also good (DIPP), and more than 91 start- been paying 30.9 percent which news for the ailing defence sector ups have been approved for has put some investors off. More as the budget was enhanced, availing tax benefits by the Inter- than 2,000 start-ups funded by which is good news for start-ups in ministerial board (IMB). SoftBank angel investors have received that field. has described the Stand-up India income tax notices. Since 2016, India ranks 77th in the Ease Of scheme as the beginning of a big the number of angel investors has Doing Business ranking according start-up boom in India. been falling; between 2017 and to the 2019 ranking. That is a jump A Credit Guarantee Fund for 2018, the number of deals fell by of 23 positions (previous rank start-ups was announced as part 40 percent. 100) — a rare feat for a country of of the Stand-up India action plan. In the budget, the Indian the size of India. The reforms will In this scheme, the government Government has reduced the continue, with more emphasis on has conceived a scheme for start- allocation for Stand-up India the structural problems. ups with a corpus contribution of around $280,500,000, which will enable the start-ups to raise loans — without any collateral — for their business purposes. A credit guarantee of around $700,000 has been provided per case, inclusive Spring 2019 Issue • www.bv.world of term loan, working capital or any other instrument of assistance extended by Member Lending Institutions to finance a start-up Business Vision recognised by the Department of Industrial Policy and Promotion (DIPP). The assistance can be in the form of venture debt, Ease of Doing Business Ranking, India 2006 - 2019 working capital, debentures, and 23 .WORLD Dolly Parton
DOLLY Parton, with a career spanning more than half a 10 century, still reigns supreme as the Queen of Country — but it's her business acumen that has brought her to the attention of BV's Ten People researchers. PEOPLE Parton, one of 12 children, grew up dirt-poor in the scrappy Appalachian Mountains of rural Tennessee. Now the feisty songstress is estimated to be worth over $500m. The Tennessee-born star is known for her signature look — blonde curls, buxom figure, and love of all things that sparkle and shine — but the flashy façade belies a determined focus to manifest the future that she envisions for herself and her community. She created the non-profit Dollywood Foundation in the late 1980s, an organisation which has donated millions to support education around the world. Parton is particularly proud of the foundation's Imagination Library programme, where families can sign up for their children to receive a free book each month until their fifth birthday. The Imagination programme was founded as a small community outreach project in 1995, and pays tribute to Parton's hardworking, but illiterate, father, Robert Lee Parton. Each month it serves more than a million children worldwide, and offers five scholarships of $15,000 each for university- bound graduates from each of Sevier County's five secondary schools. In 2016, the foundation raised more than $9m to support residents of Sevier when it was ravaged by forest fires. Parton has a full agenda of music, television, and film projects for 2019. The latest project began with Dumplin', a young adult novel by Julie Murphy which was inspired by the country music legend. When Netflix screenwriters approached Parton for her blessing of a film adaptation, Parton was thrilled to collaborate. “My songs are like my children,” she has been quoted as saying, “I expect them to support me when I'm old.” Parton allowed the producers the use of six previously released songs (including her smash hit Jolene) and agreed to create six new tracks for the film soundtrack. It has already received award nominations, and features collaborations with musicians ranging from Miranda Lambert and Elle King to Macy Gray and Alison Krauss. Parton is also slated to be reunited with co-stars Jane Fonda and Lily Tomlin this year for the filming of a sequel to 9 To 5. A Netflix series, Dolly Parton's Heartstrings, is set to 24 premiere in 2019. Philip Rowley
10 PEOPLE Focusing on enhancing client success and sales enablement
PHILIP Rowley, executive director and chief revenue officer of the Berkeley Research Group (BRG), has been named one of Consulting magazine's Global Leaders In Consulting. The list recognises individuals making a global impact in the profession, who display “outstanding leadership qualities and capabilities and exert influence in their firms”. Rowley certainly fits the criteria. The executive has built successful teams across a variety of enterprises and disciplines over the decades, and is passionate about the convergence of sales, marketing and business development. He focuses on enhancing client success, and the skills of sales enablement teams. Rowley “has been integral in bringing BRG's vision to fruition”, says chairman and principal executive officer David Teece. He has held leadership roles with private and public companies, raised capital, and led mergers and acquisitions and financing efforts that have ranged from venture funding to private equity to IPO and public company management. “During my career, I have benefited from great leadership, and today I am using and trying to impart those learnings,” Rowley said. He has experience in strategy, financial and economic analysis, licensing, intellectual property valuation Spring 2019 Issue • www.bv.world and business valuation. Berkeley Research Group is a global consulting firm that helps leading organisations advance in the key areas of disputes and investigations, corporate finance, and strategy and operations. Business Vision It is headquartered in California with offices around the world. It comprises industry leaders, academics, data scientists, and professionals working beyond borders and disciplines. Rowley earned a BA from Stanford University. He described his honour from Consulting as “meaningful to me”. 25 .WORLD Be quick to nail in-demand roles for age of Industry 4.0
By NABIL ABU EL ATA traditional roles, and the skills The skillsets required for ANALYSTS, accountants and required to fulfil them. It is also assistant accountant positions digital marketing specialists top a creating a need for new jobs. are undergoing a shift, with an list of in-demand roles in 2019, as increased need for tech-savvy employers focus on navigating an The top 10 roles, and their workers with a collaborative and increasingly digitalised business respective pay brackets, are: communicative approach. CFOs landscape and a shortage of key predict teams with the right mix skills among the UK workforce. Financial planning analysts of technical and soft skills will According to the Robert Half (£47,500 – £80,000) become indispensable, alongside 2019 Salary Guide, more than The ongoing skills shortage skills such as adaptability and data half of CEOs canvassed admit to has intensified competition for analysis. difficulty in finding candidates top performers in accounting and Business analysts (£33,250 – with suitable data-analysis and finance, with financial planning £54,250) digital skills. There are also the described by 40 percent of CFOs Business analysis will become perennial problems of finding as one of the hardest roles to one of the most in-demand roles those with “softer” skills, such as hire for. As automation and in the future of IT. Business-facing resilience, adaptability to change digitalisation reach new heights in skills will hold equal importance and critical thinking. 2019, commercial skillsets within with technical skills. Business Industry 4.0 — the term finance will become even more analysts with a desire to stay up- given to the current trend of sought-after. to-date with the latest IT software automation and data exchange Assistant management / and platforms will be attracting in manufacturing technologies financial accountants (£20,000 the highest rewards as employers — is leading the evolution of – £35,000) set out to attract the best talent.
26 Financial planning analysts, company accountants and finance managers are all in-demand
Business intelligence become even more integral to (£40,000 – £65,000) developers (£23,750 – £50,500) business outcomes in the next The financial services sector With the digital technology year, leading to an increased continues to receive increased sector expanding rapidly and demand — particularly for scrutiny, and is more affected by the demand for technical those with digital skills. As HR the resulting talent shortage, with qualifications increasing, business departments face more regulation graduate and junior roles most in intelligence developers will be and reporting requirements, demand within the accounting in demand in 2019. Finding these roles are needed to and finance professions. This fast- developers with the right technical prioritise employee engagement paced market is likely to continue ability but can also interpret the and improve retention rates. to drive competitive salary insight through a commercial lens Company accountants negotiations. is the reason business intelligence (£32,000 – £58,000) Finance managers (£35,000 is one of the most difficult IT As companies grow by – £80,000) positions to fill. According to acquisitions and diversity their The specialist skills of finance a survey of CIOs, 36 percent of customer offerings, company managers will continue to be in- respondents expressed a gap in group accountants with the right demand over the next couple this role. expertise are in growing demand. of months, as businesses rely Digital marketing analyst As professionals receive multiple more heavily on their revenue (£31,250 – £60,000) offers for roles, rarely remaining generation and monitor their Digital marketing analysts on the market for long, the value costs more closely to improve must be data-savvy professionals of company accountants will profitability. with strong commerce acumen. As undoubtedly be on the rise as “Technology and digitalisation Spring 2019 Issue • www.bv.world data insights become fundamental organisations consolidate their are propelling the evolution of to marketing teams in assessing accounts. the workplace at a rapid pace,” their true return on investment Compliance analysts said Matt Weston, UK managing and revenue generation, it is no (£35,000 – £65,000) director at Robert Half. “While Business Vision surprise that digital marketing With GDPR compliance an attractive salary and benefits analysts are sought-after in 2019. continuing to be a priority for package continue to attract and HR Advisor/Senior Advisor many firms, compliance analysts retain top talent, training and (£23,250 – £37,250) will continue to be in demand. development is vital for employers HR advisor roles are set to Regulatory accountants to win the ongoing war for talent.” 27 .WORLD Broad base of skills is key to finding work, students told — and so is some perseverance
CHARACTER-BASED skills such as The education field also looks perseverance and determination promising as lifelong learning even — or especially — in the face importance increases. Studies of failure are just as important as Baby boomers suggest that young people with tech skills for school leavers. combinations of broad-based Some occupations are are leaving and specialised knowledge — predicted to be in demand in English, history, philosophy, or 2030, but others will face declining the workforce management, paired with foreign popularity with employers. languages, STEM subjects, or Engineering and design jobs are IT expertise — will find the job expected to have a bright future. market more welcoming. Building finishers and electrical The green economy continues Students are also being urged trades should manage just fine, to gain in popularity and to develop interpersonal and but others in building and momentum. Swelling numbers higher-order cognitive skills. construction trades can expect of baby boomers are leaving Social adeptness, creativity, and a decline in work opportunities. the workforce, cashing in on collaboration are invaluable. Manufacturing, administrative, retirement plans, and taking Key changes to the jobs market and secretarial occupations advantage of more public services — automation, globalisation, and are some of the first expected — creating a demand for skilled urbanisation — will present new casualties in the onslaught of labour in the health care and challenges and opportunities. robotic automation. public sector. To help students prepare for a
Administrative and secretarial occupations are among the first expected casualties of automation 28 Student work comes in many forms — sometimes it means getting your hands dirty successful future in the workforce, The Economist, Zanny Minton as possible,” Hodges said, “and Speakers For Schools (S4S) has Beddoes told students at St John our work experience placement been connecting motivational Bosco School that “there are programme can help.” speakers with students throughout enormous opportunities available The programme, called the UK. The brainchild of author but also huge challenges” to NextGen, connects students and journalist Robert Peston aims overcome. She urged students to and businesses through an to inspire students by exposing beef up their repertoire of basic advertising and application portal them to influential leaders at skills — particularly in maths and in one mutually beneficial system. a time in their lives when their communication skills — while Students gain an understanding of choices are most likely to affect keeping their options open. Most practical pathways to follow after the future. importantly, Beddoes advises: school, and organisations benefit Since the launch of the “When you get an opportunity, from students' fresh perspectives. programme, more than 1,000 take it”. The programme has placed prominent figures have shared INTERNSHIP more than 500 students at sector- their insights and expertise with Work experience is something leading companies in nearly 20 half a million students. The that's required by most prospective different industries throughout programme is free for students employers, but offered by few. the UK. Companies across the and schools; it has grown from 140 While most employers favour UK are engaging with students sessions the first year to 1,200 in candidates with work experience, individually by hosting one- the 2017/2018 academic year. It landing an internship can be or two-week work experience aims for geographic diversity and tricky. placements. strives to reach students in more It's a crucial key for increasing Some big corporate and Spring 2019 Issue • www.bv.world remote areas: 92 percent of UK social mobility, and work creative giants have already local authorities have at least one experience can elevate a student's signed up, including musical participating school, 70 percent professional prospects. powerhouses MTV and Spotify. of which are in rural areas. S4S executive director Students could also unleash their Business Vision S4S organises various Ashley Hodges pointed out that imagination at creative firms like programmes and campaigns students often lack the necessary M&C Saatchi and Endemol Shine, throughout the year that target network of professional contacts or delve into the world of finance specific objectives or address to get a placement. “We want at the Bank of England. current issues. Editor-In-Chief of students to be as empowered All in a day's work experience. 29 .WORLD World bends and warps to whim of augmented reality: Is this the future… or a fad?
Technology has dipped an oar — or perhaps an outboard motor — into the waters of human evolution. HAL WILLIAMS reports on the emerging phenomenon of Augmented Reality.
INSTEAD of waiting a few million our DNA may still take a few are just a mouse-click away. years for evolution to improve our hundred thousand millennia Virtual reality (VR) and overall performance as a species, of incremental change, but as Augmented Reality (AR) are in the 21st Century we can just systems operators we are rapidly technologies that allow a user download the app. approaching perfection. to experience digital content in Populations, human and Provided we have a decent new ways. Traditionally, people animal, have thrived or perished internet connection. watch a computer screen or a on inscrutable factors, and adapt- Augmented Reality is a mobile device to watch a video, or-die is as true now as it ever was particularly shiny facet of what is read articles or look at images of — for the animals. Humans can becoming known as the Mixed their surroundings, or pictures. manipulate and upgrade vital Reality Spectrum, itself part of That's bordering on the luddite, senses — sight, smell, recognition, the so-called “reality-virtuality” nowadays. AR and VR are where sound and touch — to achieve continuum. it's at. new levels of performance The integration of the real and AR requires the user to look and perception. Permanent, the virtual has never been more at, or through, a device such as hard-wired improvements to feasible, and (sort-of) superpowers a smartphone, and introduces
AR requires the user to look at, or through, a device 30 Marc Bruxelle/Shutterstock.com
One of the first points of contact people will have had with AR: Pokemon Go additional information about the Iceland. Through the HMD, they plumbing. But that world remains world seen through that lens. The see a world that is fully virtual; in virtual, distinct from this world. user will see the world in the same other words, entirely generated by Overlaying graphics on videos way through that camera lens — a computer, or recorded using a has been possible for a while, so but with digital information added specialised (360-degree) camera. the key feature of augmented to create a virtually enhanced With VR, users step into a ready- reality is that crucial addition vista. Information about the made, 3-D, computer-generated of environmental analysis. Step surrounding (real) environment forward to slay a VR dragon and can become interactive, able to be you may well crack your shins manipulated. It sounds outlandish on a coffee table or brain your when described, but you have ‘Is there mother-in-law with a lightsabre. probably already come into contact Augmented reality is more user- with it: think Google Earth, and any value in friendly, and potentially safer. Pokemon Go. Google Sky Map is a “AR-capable devices can detect particularly cool AR development. experiencing geometric features, such as a floor By pointing a smartphone or a wall, which allows software camera at the firmament, AR to place 3D graphics into the supplies information about the real life?’ world,” says Konradsson. “This constellations, stars and planets means that once an item has been above you — knowledge it would placed into the world it can stay have taken decades to acquire in world in glorious Technicolor there — relative to objects in the analogue, stargazing days. with surround-sound, a construct real world. So even if the user Spring 2019 Issue • www.bv.world And if you really want to of ones and zeros that somehow looks away from it, the item is still get ahead, you need another combine to create realistic, but there.” acronym: an HMD (head- totally artificial, populations of AR is gaining a lot of attention, mounted device). “Virtual Reality zombies or gunfighters, other- especially from the heavyweights Business Vision technology requires the user to worldly environments, magical on all sides of the gaming industry wear a pair of goggles that track universes. Users can do just about — and Asia is the sharpest part head movement,” explains Gisli anything in their virtual world with of this particular cutting edge. Konradsson, general manager of the requisite HMD, appropriate Konradsson has worked in Directive Games North, based in accessories and, in extremis, Directive Games' primary game- 31 development studio in Shanghai, device — for example, a joystick where most of the company's AR or a steering wheel. Delicate .WORLD and VR innovation takes place. and complex sensations, from a He was one of the lead developers tender touch to a handshake — or in Shanghai before returning to even pain — are possible. A glove his native Iceland to take up his or similar enveloping item can current role as general manager. allow real, physical contact in an “Directive Games has been imaginary, virtual world. at the forefront of VR and AR It doesn't require a huge jump technology for the past few years,” of imagination to realise that the he says. “As a game-development sex industry is one sector actively company, our focus has been to Gisli Konradsson exploring the potential. The utilise these new technologies to labyrinthine, fractal nature of propel the game industry, with a “Fremitus” is usually a medical cyberspace is unfolding, deeper focus on multi-user experiences. term, but in this context it relates and weirder than we imagined — “AR and VR bring unique to vibration. Ever stood next to a but we seem to assimilate it, and challenges in development when huge speaker at a live gig? That monetise it, pretty well. And this it comes to multi-user products, rumble through your chest is an is just the start, says Konradsson. so Directive Games has developed example of fremitus, and some “We believe that both AR and its technology to ensure that devices are now designed to add VR are still in their infancy, so we whatever we do is multi-user. this dramatic component to your are only starting to scratch the “The Machines AR was the virtual experience. Smartphones surface with what the technology first multiplier AR game where have tiny vibrators; that wzzzt- can do. The gaming industry is the users were able to play a wzzzt-wzzzt when your phone's a great place for the technology game connected to each other. on do-not-disturb mode, almost to mature, where developers are The other user could be in a silent but somehow enough to creative and push innovation.” different country, but sharing the wake you from the deepest sleep? But the applications are many. augmented-reality world.” Nintendo game-controllers such AR is great for advertising, because AR can even improve your as Rumble Pak, and VR chairs users can see, for example, how vocabulary; I've just learnt what fitted with “bass-shakers”, take a piece of furniture will look in “haptic” and “fremitus” mean. these sensations to new levels. their living room (see sidebar). Haptic first: “relating to the Through forces such as Toyota and marketing agency sense of touch”. Full-body haptic vibration and motion, a new Brandwidth are bringing AR to suits provide the potential for degree of reality is possible. US showrooms in a similar fashion virtual encounters of the private, “Force-feedback” combines to let customers “see” through up-close-and-personal kind. the sense of force to an input the bodywork of the C-HR
The integration of the real and the virtual has never been more feasible 32 phones, Wikipedia and Google but it's interesting to think about. have changed all that. “I think Today, we can use augmented VR is showing that in a few years, everyone will reality to add little things to be wearing smart glasses — or eye the world, but when we reach a promise in the implants, but that might be 20 or point where we can use the AR more years in the future,” predicts technology to completely replace treatment of Konradsson. “You will be able reality — which is what virtual to look at any piece of text and reality does — there won't be any phobias have it immediately translated. If need to have this separation. you look out the window of your “The real leap forward will apartment, you will be able to see be once we manage to get hybrid vehicle. The technology any environment that you choose. enough processing power into allows customers to peer under “There is a huge amount wearables, such as glasses. There the outer skin of the C-HR and of potential, so I think the big are companies that are doing very see what makes the hybrid tick. question will be, ‘Is there any value interesting work in this field, but The app projects images of the in experiencing real life?' We are the technology is still a few years car's drivetrain onto showroom still many years away from that, out to be consumer-ready.” vehicles to demonstrate how its elements interact. The graphics even feature “hotspots” that can BEFORE HUMAN 2.0 ... COMMERCE! be pressed like buttons to reveal information on systems such as WHAT do we have at our disposal, in AR terms, and what can we the fuel tank, motor and battery. expect in the near future? YouTube has some of the more mundane AR and VR technologies have answers already. potential for remote teaching, “The 2014 IKEA catalogue gives you the ability to place virtual where students can attend a furniture in your own home with the help of augmented reality,” digital classroom anywhere in the reads the blurb beneath IKEA's AR video ad, one of the more world. The technology can help a prosaic — but practical — applications of the technology. “Unlock mechanic working on a complex the feature by scanning selected pages in the printed IKEA catalogue machine — he or she can look with the IKEA catalogue application (available for iOS and Android) through a camera and see … Then simply place the printed IKEA catalogue where you want to instructions on how to fix it. VR is put the furniture in your room, choose a product from a selection of showing promise in the treatment the IKEA range and see how it will look in your home.” of phobias, too; people can be The LEGO AR Studio is an AR experience that allows you to placed in an interactive virtual play with “digital versions of selected LEGO® sets in your real-world environment as part of their scenes”. You can “mix digital versions of selected LEGO® sets with therapy. Cue the hairy spiders. your physical LEGO® scenes.” OK. But why…? “Soon we will see AR and More useful by far is Measure, an app introduced with iOS 12. VR starting to become more Using AR, real-life objects can be measured through the lens of an visible in our everyday lives,” iPhone or iPad camera. “iOS 12 will be available for iPhone and iPad Konradsson says, “and that's this fall,” Measure promises. It can also give a perfect level, so leave when the connectivity and multi- that toolbox at home. user experiences start to become Know all the angles? Fancy yourself as a pool shark? The fun important.” His prediction is that and interactive system known as Pool Live Aid allows for real-time over the next decade, VR and AR updates to action in a pool game. It not only entertains, but serves will merge into an augmented as a teaching tool. It's designed for players of all skill levels: the use existence where the world around of the automatic recording of shots function assists more skilled us is constantly being analysed, players, while the real-time trajectory calculations would benefit any predicted and updated with real- player hoping to clear the table. time information. Everest VR is more of an experience than a game, reads the And not all the applications blurb. “Never have I seen anything this beautiful in VR,” raved one Spring 2019 Issue • www.bv.world will be benign. “I've heard that reviewer. “There are gameplay elements that are good, but it is very some companies are doing short, it probably took me 40 minutes to complete. Even though it research into military application is so short, it's only £10.99 on the Oculus store, which in my eyes is where soldiers are using this type well worth it just to see this incredible game. The night scenes are Business Vision of technology for aiming and mind-blowing.” recognising targets in the field.” Interactive experiences for entertainment have been an obvious Not too many years ago a focus in this emerging field — think Pokemon Go — but it all began visit to a library was the way to with a quest for enhanced information and performance. look up information, but mobile 33 .WORLD Just a game? Industry bigger than movies, music combined
BY YOGESH PATEL side of gaming was Loot Crate, In late 2018, the Australian SINCE the 1970s, gaming has with bonus features, upgrades Senate led an inquiry into what the grown to become one of the and enhancements for players effects of micro-transactions could largest industries in the world. compiled in a single “box”. The have on players. It concluded In 2016, about 2.6 billion subscription service offers users that the issue depended on how people were regularly gaming monthly parcels that contain items closely the packages resembled their hearts away. By 2017 the that, if sold separately, would cost gambling-type behaviour. market had grown by 12.4 percent, more. In the UK, too, the loot box reaching a record revenue of Now things have moved to “in- phenomenon is facing scrutiny; £5.11bn. Estimates are that almost game”, game-specific, loot boxes 15 European commissioners half the UK population plays — with some resistance from the and regulators have jointly led games of some form on mobiles, market. Before, the pay-to-win and an investigation into their use consoles and/or computers. in-app purchases were focused on and prevalence. Many micro Gaming has had a major the mobile games sector: free to transactions have been deemed impact on global culture and download but with mechanics to be in violation of national economy. From first-generation designed to make gamers pay. gambling laws. consoles and arcade games to the This was seldom seen on the But this isn't a ploy to scam introduction of mobile, computer large-scale, but now FIFA and children and their parents. and virtual reality (VR) gaming, NBA2K have parts of their games Merchandising has led to some this industry has seen years of based around buying and opening revolutionary ideas on the continuous growth. packs of “athletes” for players to marketing of items and games. Merchandising has gone from use. Middle Earth: Shadow Of Conventions are held around an obscure niche market to a War, and Star Wars: Battlefront 2 the world, and are a great way to burgeoning mainstream sector came under fire for introducing generate hype for a new game that grew by almost seven percent similar schemes. or console. They also attract in 2016 alone. This development has led to companies selling models, One of the first companies concern over whether gaming was posters, art and other game- to revolutionise the commercial starting to resemble gambling. related merchandise. In 2018, E3
Almost half the UK population plays games of some form on mobiles, consoles and/or computers 34 Another phenomenon coming to the fore is playing games for financial gain or to make a living
— the Electronic Entertainment Legends and Dota 2 boast more in 2018 – outstripping music and Expo, the biggest of convention than 40 million players. During movie industries. For some, this is of all, held in Los Angeles — the Football World Cup, the only proof that there is still room achieved a record attendance of number of people playing the to grow. almost 70,000 people. game skyrockets; why would it With the development of The world of e-Sports has be any different when only the revolutionary systems, such as popularised the grand taboo of medium has changed? VR and Augmented Reality gaming — playing for financial The global games market had (AR), gaming is set to remain an gain. Games such as League Of a revenue in the order of $138bn integrated part of modern life. A GAMER’S VIEW: PACMAN TO POKEMON AND BEYOND
THE industry started off with games like Pacman, The addictive nature of the games and the arcade machines into which teenagers were competitive nature of players combined to create supposed to drop their allowances, coin after coin. a new source of profit. The chance of getting a Arcades were a major success — but a competitive edge over other players proved to be new industry was about to be born. With the a winning concept (no pun intended). Gamers development of the PC and game consoles, the want to progress quickly and outplay their online developers shifted their aim. Instead of getting competitors. their revenue from individual coins, the new way of This is where in-app-purchases come in. Ranging making a profit was by selling a complete game to from mere cents to larger packages, valued up to as many individual buyers as possible. €99, the paid-for benefits for players — certainly Spring 2019 Issue • www.bv.world In 2018, with the latest changes in smartphone those with a credit card and a real drive to win — technology, the digital playing field has changed are evident. once again — taking the industry to a new level. Your online avatar's powers and protections can Nowadays, game developers offer the game for be boosted with a keystroke or two. Business Vision free. Developers have recognised that by forgoing Clash Of Clans — one of the three current top- the initial price of purchase, they can generate earners — brings in $1.1m every day in revenue revenues 10-fold through a new concept: in-app- from the US alone. purchases. ALEXANDER VAN DOORN 35 .WORLD AI, AI, AI — where is artificial intelligence taking us? And how dangerous could it be?
‘Summoning the demon’ is one of the ways the world’s industry leaders have described machine-based smarts. Will AI enhance our lives or completely upend them? Listen to the experts, from Hawking to Musk…
THERE'S no way around it — of the iceberg. What if AI advances understand. Whereas the short- artificial intelligence is changing to the point where its creators can term impact of AI depends on human civilization, from how we no longer control it? How might who controls it, the long-term work to how we travel and how that redefine humanity's place in impact depends on whether it can laws are enforced. the world? be controlled at all.” As AI technology advances and Below, experts weigh-in on ELON MUSK seeps deeper into our daily lives, the threat that AI poses to the Few technologists have been as its potential to create unfortunate future of humanity, and what we outspoken about the perils of AI situations is becoming more can do to ensure that AI is an aid as the founder of Tesla Inc, Elon apparent. A Tesla Model 3 owner to the human race, rather than a Musk in California died while using destructive force. Though his tweets about AI the car's Autopilot feature. In STEPHEN HAWKING often take an alarmist tone, Musk's Arizona, a self-driving Uber The late Stephen Hawking, warnings are as plausible as they vehicle hit and killed a pedestrian world-renowned astrophysicist are sensational: “I think we should (although there was a driver and author of A Brief History be very careful about artificial behind the wheel). Of Time, believed that artificial intelligence. If I were to guess like Other instances have been intelligence would be impossible what our biggest existential threat more insidious. For example, to control in the long term, and is, it's probably that. when IBM's Watson was tasked could quickly surpass humanity if “So we need to be very careful with helping physicians diagnose given an opportunity: with the artificial intelligence. cancer patients, it gave numerous “One can imagine such Increasingly scientists think “unsafe and incorrect treatment technology outsmarting financial there should be some regulatory recommendations”. markets, out-inventing human oversight maybe at the national Some of the world's top researchers, out-manipulating and international level, just researchers and industry leaders human leaders, and developing to make sure that we don't do believe these issues are just the tip weapons we cannot even something very foolish. With artificial intelligence we are summoning the demon. In all those stories where there's the guy with the pentagram and the holy water, it's like yeah he's sure he can control the demon. Didn't work out.” Musk believes that proper regulatory oversight will be crucial to safeguarding humanity's future as AI networks become increasingly sophisticated and are entrusted with mission-critical responsibilities: “Got to regulate AI/robotics like we do food, drugs, aircraft & Early versions of ‘Autopilot’ features have had tragic results cars. Public risks require public 36 oversight. Getting rid of the FAA Some of the world’s top researchers and industry leaders weigh-in on the threat that AI poses won't make flying safer. They're “And since we just established deep learning program does.” there for good reason.” that it's a hopeless activity to try NICK BILTON Musk has compared the to understand the power of a Other experts fear the destructive potential of AI machine only two steps above unintended results of AIs being networks to the risks of global us, let's very concretely state given increasingly mission-critical nuclear conflict posed by North once and for all that there is no tasks. Author and magazine Korea: way to know what ASI will do or journalist Nick Bilton worries “If you're not concerned about what the consequences will be that AI's ruthless machine logic AI safety, you should be. Vastly for us. Anyone who pretends may inadvertently devise deadly more risk than North Korea.” otherwise doesn't understand “solutions” to genuinely urgent He has also pointed out what superintelligence means.” social problems: that AI doesn't necessarily have OREN ETZIONI “But the upheavals [of AI] to be malevolent to threaten Considerable problems of bias can escalate quickly and become humanity's future. To Musk, the and neutrality aside, one of the scarier and even cataclysmic. cold, immutable efficiency of most significant challenges facing Imagine how a medical robot, machine logic is as dangerous as AI researchers is how to give neural originally programmed to rid any evil science-fiction construct: networks the kind of decision- cancer, could conclude that the “AI doesn't have to be evil to making and rationalisation skills best way to obliterate cancer is destroy humanity — if AI has a we learn as children. to exterminate humans who are goal and humanity just happens According to Oren Etzioni, genetically prone to the disease.” in the way, it will destroy humanity chief executive of the Allen NICK BOSTROM as a matter of course without Institute for Artificial Intelligence, Academic researcher and even thinking about it, no hard common sense is even less writer Nick Bostrom, author Spring 2019 Issue • www.bv.world feelings.” common in AI systems than it of Superintelligence: Paths, TIM URBAN is in most human beings — a Dangers, Strategies, shares Tim Urban, blogger and drawback that could create Stephen Hawking's belief that AI creator of Wait But Why, believes additional difficulties with future could rapidly outpace humanity's Business Vision the real danger of AI and ASI AI networks: ability to control it: is the fact that it is inherently “A huge problem on the “Before the prospect of unknowable. According to Urban, horizon is endowing AI programs an intelligence explosion, we there's simply no way we can with common sense. humans are like small children predict the behavior of AI: “Even little kids have it, but no playing with a bomb. Such is the 37 mismatch between the power of nearest adult. Russian President Vladimir our plaything and the immaturity “Yet what we have here is not Putin, for example, is reported .WORLD of our conduct. one child but many, each with as saying that he firmly believes “Superintelligence is a access to an independent trigger that mastery of emerging AI challenge for which we are not mechanism. technology will have a profound ready now and will not be ready “The chances that we will all impact on the balance of global for a long time. find the sense to put down the political power. “We have little idea when the dangerous stuff seem almost “Artificial intelligence is the detonation will occur, though if negligible. Some little idiot is future, not only for Russia, but for we hold the device to our ear we bound to press the ignite button all humankind,” he said. can hear a faint ticking sound. just to see what happens.” “It comes with colossal “For a child with an VLADIMIR PUTIN opportunities, but also threats undetonated bomb in its hands, a World leaders need little that are difficult to predict. sensible thing to do would be to convincing of AI's unprecedented “Whoever becomes the leader put it down gently, quickly back capacity to reshape the in this sphere will become the out of the room, and contact the geopolitical landscape. ruler of the world.”
* An unedited version of this story first appeared in CBINSIGHTS
Photo collage previous page: Business Vision
Individual photo credits: Hawking: Twocoms / Shutterstock.com
Musk: Kathy Hutchins / Shutterstock.com
Urban: Debbie Byron / Wikimedia Commons
Etzioni: DavidLucNguyen / Wikimedia Commons
Bostrom: Future of Humanity Institute / Wikimedia Commons
Bilton: Kathy Hutchins / Shutterstock.com
Putin: bibiphoto / Shutterstock.com
Putin: ‘AI is the future, not only for Russia, but for all humankind’ 38 MacKenzie Bezos
10 PEOPLE
SHE IS the World's third-richest woman, a successful author and — as of this April — the ex-wife of Amazon founder Jeff Bezos. MacKenzie Bezos has received a record-breaking divorce settlement of a cool $35bn (£27bn), which should tide her over for a while. BV is gratified to learn that the split was more-or-less amicable, because hey, $35bn. The woman formerly (and possibly still) known as Ms Bezos (never Mrs) retains a four percent stake in Amazon — which, at $35.6bn, is worth more than the settlement. The pair were married before Jeff founded Amazon in 1994; she was one of the first people to join the workforce. Both Bezos(es?) have been saying warm things about each other via Twitter, which is nice. Presumably sharper words were aired when JB became romantically involved with former Fox TV host Lauren Sánchez. But that's water under the bridge, and both parties are said to be in good spirits. The 48-year-old divorcee has reportedly transferred her Amazon voting rights to her ex, who — despite making the whopping pay-out — is still the richest dude walking the planet. Spring 2019 Issue • www.bv.world Jeff and MacKenzie Bezos have four children; it isn't thought that child support will be necessary. MacKenzie will give up her interests in The Washington Post and the Bezos-owned space travel firm Blue Origin, recently featured in BV. Amazon last year generated sales worth $232.8bn, according to Forbes magazine. Business Vision MacKenzie Bezos is a novelist with two books under her belt, The Testing Of Luther Albright and Traps. Pulitzer Prize-winning author Toni Morrison taught her in creative writing at Princeton University, and praised her as “really one of the best”. She'll have quite a story to tell if she branches into non-fiction. That worked out pretty well for Michelle Obama… 39 .WORLD Putting the PE into ‘peak' — has private equity had its day?
It’s flavour of the month, but PE is seen by some as a bubble. BV’s BRENDAN FILIPOVSKI reports.
FROM local councils in the UK to but today the term is broader in were nearly all American, expert university endowments in the US, meaning, and includes venture financial engineers focused on it seems everyone wants a piece of capital, growth equity investing, buyouts. the Private Equity pie. and add-ons. It can also mean the Today, private equity is a There are good reasons why purchase of a publicly listed firm, broad church of global firms, with private equity (PE) has been and its subsequent de-listing. many different types of General growing since the global financial PE investments are typically Partners (owners of the PE firms) crisis — but the growth in “dry illiquid and made for the mid- to and Limited Partners (investors in powder” (uninvested capital kept long-term. PE global Assets Under PE funds). This includes university in liquid assets), and increasing Management (AUM) have more endowments, family offices, and valuations, suggest that the than doubled since 2008, reaching even PE firms that have become industry may be at the peak of $3.41tn in June last year. If the publicly listed companies, for the current cycle. Some are even global PE market were a stock example Blackstone and KKR. calling it a bubble. exchange, it would be the ninth- Even pension funds are getting Private equity is a capital largest in the world — ahead of involved, with 27 percent of new investment strategy in which Toronto and Frankfurt. Most mandates from US and UK going a specialist company or fund PE firms have a North American to PE firms in 2018. The industry is purchases a private firm, in whole focus, with Europe and Asia the relatively concentrated, however, or in part, typically using some next-most popular markets. with the top 10 firms raising 24 level of debt borrowed against Growth has also been seen in percent of total capital in 2017. the target firm. Traditionally, the breadth of PE participants. The growth since 2008 has this meant a complete takeover, In the 1970s and 1980s, PE firms been mostly driven by private
The growth in ‘dry powder’ (uninvested capital kept in liquid assets) since 2006 40 WHAT WORRIES PRIVATE EQUITY PROFESSIONALS? PRIVATE equity professionals are concerned about a change in UK government, new research reveals. Two in five private equity industry professionals believe that a change in UK government is the biggest risk to their investment appetite in the UK, compared to one in five who selected a no-deal Brexit as the major threat. Research conducted by independent financial risk advisor JCRA — which works with clients in the real estate and private equity sectors — shows that nine out of 10 respondents operating in the private equity industry were focusing on making new investments in the UK. None of the respondents expressed concern about higher interest rates or the availability of debt finance in private equity, although a fifth were anxious about currency volatility and weakness of the pound. The research included professionals from across the financial services sector. Benoit de Bénazé, head of private equity at JCRA, said it was encouraging to see that the industry “is still committed to the UK” despite market uncertainty. “The response on current concerns chimes with our own experience and client enquiries,” de Bénazé said. “International expansion has moved up the private equity sector's agenda. With market volatility and geopolitical risk likely to remain on the radar in the coming year, our clients are benefiting from our advice to retain some flexibility in their hedging approach.” The JCRA team works in partnership with clients to evaluate and hedge market risk. equity's outperformance of public of deal brokers badgering small destinations may have cheaper equity. Over the past 25 years, the and medium-sized firms over their values, they may also have higher Cambridge Associates' US Private prospects for buyout. country, and market, risks. Equity Index had an average That demand is likely to Alternative forms of private annual return of 13.4 percent, push up the price of target firms capital may take some of the while the S&P 500 and NASDAQ — which is a problem, because pressure off PE firms, but they composite had returns of 9.81 and valuations are already high. share some of the same problems. 9.88 percent respectively. Debt levels of six times EBITDA In recent years, investment in PE firms burnished their (Earnings Before Interest, Tax, closed-end real estate funds and reputation by their general Depreciation, and Amortisation) private debt has been growing strong performance during the are considered unsustainable for strongly. global financial crisis, while most companies. According to Private debt is where equity other competing alternative asset Bain Capital, PE firms on average firms provide debt financing to classes — especially hedge funds – are already approaching that firms unable to borrow funds from performed poorly. limit. Some (including the KKR- banks. Private debt and real estate The growth in the total value led acquisition of USI Insurance are much smaller than Private of those “dry powder” assets — 14 Services) are at over eight times Capital; together they represent percent per year since 2013 — EBITDA. around half the assets under PE points to increased competition Adding to the problem of rising management. There appears to in the field — and the potential prices is the threat of recession, be room for growth, but there threat of asset valuations pushing economic fallout from Brexit, are already signs of increased target firms past sustainable debt and a potential USA-China trade competition. Real estate and levels. war. In any of these scenarios, private debt are also vulnerable to By June 2018, around 36 purchased firms' EBITDAs are potential interest-rate rises by the percent of total PE assets under likely to fall — which would push Federal Reserve. management matched the dry their debt even higher. Increasing If the demand from PE firms powder definition. In 2017, interest rates and the unwinding cannot be satisfied with new these assets represented around of the quantitative easing by the targets, and valuations continue 182 percent of capital raisings Federal Reserve will also put to increase, the industry may for the year — and in 2018 pressure on PE firms through be heading towards increased Spring 2019 Issue • www.bv.world they represented 282 percent. increased debt servicing. consolidation in the next few While PE firms have raised large There are several trends that years. This will reduce competition amounts of capital in recent years, may take the pressure off the for target firms, and it can provide they are struggling to find firms to demand for investments. PE firms increased economies of scale in Business Vision invest in. The increased demand are starting to explore more cross- operations and debt-raising for for investments is also visible in border targets in their search for PE firms, which will take further the number of large PE firms cheaper deals. South East Asia, pressure off margins. purchasing medium and small China and India are becoming PE may have reached its peak firms. There are anecdotal reports popular targets, but while such in the current cycle. 41 .WORLD Never mind the valleys: how green is your juice?
… and we aren’t talking about kale smoothies. BV’s RICHARD THOMAS gets out his calculator and tots-up the true environmental cost of powering ‘green’ electric vehicles.
YOU MAY have noticed a aims of electric transport is to cut air pollution and greenhouse gas vehicular trend emerging in CO2 generation by reducing the emissions from where the car is recent issues of BV — cars, bikes, use of fossil fuels. In Norway (see driven to where the electricity was planes and motor racing are all Autumn issue of BV) there are generated. The construction of going electric. hopes of making all their domestic power stations themselves, using This is all being done in the air traffic electric by 2040. As Dag concrete, causes CO2 emissions name of Mother Earth, but any Falk-Petersen, the CEO of the — and these are invariably large conversion to electricity is only Norwegian aviation authority, concrete structures. as environmentally friendly as told me: “The Norwegian short- Coal produces more CO2 per the method used to generate leg domestic network is ideal kilowatt hour (kWh) than any it. Even the most efficient for trialling the first commercial other generation method, and it renewable power sources come electric-powered flights”. requires huge amounts of water with a downside, if not linked to In a country where 98 for cooling. The burning process generation, then as a result of the percent of electricity comes from leaves behind large quantities construction of the infrastructure hydropower, that will make a big of ash, and the World Health or equipment involved. difference to emissions levels — Organisation says air pollution The chief global but most electricity generation from burning coal is a direct cause environmental concern these around the world still comes of deaths every year. Natural gas days is climate change, caused by from burning coal and gas. If (methane, or CH4) is in itself a increasing levels of greenhouse the electricity used to power an greenhouse gas, and burning it gases, CO2 and CH4 (methane) electric car is produced from fossil creates the less potent — but still in the atmosphere. One of the fuels, all you are doing is shifting problematic — CO2. It is cheaper
Any conversion to electricity is only as environmentally friendly as the method used to generate it 42 Richard Thomas
Not everyone appreciates the aesthetics of wind farms like this one near Tarifa in southern Spain and cleaner than coal, but affecting wildlife and humans, efficient at turning sunlight into obviously limited to what naturally and land upstream of the dam electricity. There are many large occurring resources exist. is permanently lost, sometimes solar “farms” with banks of panels Apart from CO2 emissions requiring the abandonment of turning to follow the sun – a trick from the initial construction, entire villages. These factors place science learned from sunflowers. nuclear fission generators don't a question mark over plans for Industrial scale generation can produce any greenhouse gases new hydro projects, but there is come from concentrated solar during operation. Neither are no reason to criticise those already power plants, such as the PS20 there issues of air quality, as solar plant at Sanlúcar in southern nothing is burned. Spain. The problem is radioactive The Sun is the An array of mechanised waste. Most of the waste mirrors or “heliostats” follow produced to date is in “long- the Sun and reflect its light and term temporary” storage facilities original source heat to a collection point on around the world, and more a central tower. Heated water permanent storage facilities inside of all energy produces steam which operates stable rock formations have not a turbine, generating power like yet lived up to expectation. Risk on Earth a conventional power station. of accidents (think Windscale/ All free, apart from the cost of Sellafield, Three Mile Island and construction and maintenance. Fukushima) and waste disposal in operation. Norway's almost Wind farms are considered problems notwithstanding, exclusive use of hydro generation an eyesore by some, as they can Spring 2019 Issue • www.bv.world nuclear is considered the best is doubly good news for its plans be seen for miles – but their “always on” generation method — for electric domestic aviation. ability to convert wind power into at least in terms of CO2 emissions. The Sun is the original source electricity makes them popular. A Hydro-electric power schemes of all energy on Earth, and solar growth area is in offshore wind- Business Vision produce no CO2 as a direct result of power from photovoltaic panels power generation, which avoids generation — but a large amount has been around for decades. the “NIMBY” objections. Wave of concrete is required to build Quite a bit of energy is required and tidal power have been in a dam. Water-flow downstream for the manufacture of the panels, the “promising, but more work is invariably altered, negatively but in operation they are very needed” category for many years. 43 .WORLD
Electric cars not in use but connected to eMotorWerks’ JuiceNet make a 30MW ‘virtual battery’
Heading into the 21st Century, purposes it is inexhaustible. cars not in use but connected to real progress is being made. Natural sources of steam deep eMotorWerks' JuiceNet make a Pilot schemes are reaching the below the surface are tapped, or 30MW “virtual battery” that can point of commercial viability, but holes are drilled into “hot rocks” be used as online grid storage for again, these renewable sources near the surface. Water is pumped solar and wind power to balance bring unintended environmental in, and the resulting steam turns demand throughout the day. effects. Barrages, dams and tidal turbines. This power source is Users of the network are asked lagoons can greatly affect the flow theoretically available all over for permission for their cars to be of water into and out of estuaries, the world, but the necessary heat used in this way — and rewarded which can have negative effects on is closer to the surface in certain by the network if they do. “EV fragile ecosystems. areas, such as Iceland — and so charging adds another option Electricity from biomass is more easily exploited. to efficiently match local energy generated by burning crops Another new concept, supply and demand, and such a grown specifically for the purpose. developed in the US, is the project's results could open the All the CO2 released by burning microgrid. Homes and businesses door to more transactions among has been captured from the in a local area can buy and other microgrid participants and atmosphere as the crop is growing, sell electricity from each other EV drivers,” said Lawrence Orsini, but there are emissions from according to demand and CEO of LO3 Energy. agricultural activity, transport and supply, with transactions secured One of the major objections to infrastructure. Pollution is less by blockchain. The company increasing reliance on solar and than from traditional generation that developed the microgrid, wind power has always been what methods, and the main problem Brooklyn-based LO3 Energy, has do you do when there's no sun with biomass is land use — a viable, teamed up with eMotorWerks, and no wind? Maybe one answer large-scale source of electricity a company that has a network to that objection will be to switch would require a significant area of 6,000 electrical vehicle (EV) completely from petrol and diesel of land to be taken out of food charging stations in California. cars and motorcycles to electric. production. EV owners can choose when to A controversial viewpoint, not Geothermal energy comes charge their vehicles, depending least with the editor of this from heat below the Earth's crust. on the varying supply of cheap fine publication, but it will be It produces no emissions during electricity. And there is another interesting to see how this one 44 generation, and for all practical benefit to this system. Electric pans out. PR08577 KTX_Limassol_210x281 hi.pdf 1 04/10/16 12:59 .WORLD Comrades in combat: rival outdoor clothing brands are united in their fight for environmental protection
ETHICAL fashion may be a climbing. Chouinard created his do something about it.” buzzword now, but some clothing own climbing gear during the Columbia Sportswear brands have been riding the snow seasons and sold it from the Company is a family business sustainability wave longer than back of his car the rest of the year stemming from a similar love of the others. And naturally, outdoor as he roamed California in search great outdoors — and hats: it was apparel brands are at the vanguard of big walls to scale. founded in Portland, Oregon, in of sustainable style. From those free-spirited, 1938 as a millinery. The US Pacific Dominating the outdoor hands-on beginnings, Chouinard Northwest, home of Columbia clothing market, and shining has built a multi-billion-dollar headquarters, is a region of dense as examples of good corporate empire — one that he and forests and towering mountains, citizenship, are two companies: current CEO Rose Marcario rugged coasts and wide-open Patagonia and Columbia. Each wield like a weapon in the fight spaces — a perfect playground for has an ethos rooted in a genuine for the planet. “At Patagonia, we the family, and a testing ground love of the wilderness, and each appreciate that all life on Earth is for the products. strives to honour the landscapes under threat of extinction,” reads Columbia chair Gert Boyle that inspire them. the mission statement. “We aim to — whose parents started the The Patagonia company use the resources we have — our original hat-making business — is began in 1973 with founder Yvon business, our investments, our known for her “Tough Mother” Chouinard's passion for rock voice and our imaginations — to persona thanks to Columbia's
Andriy Blokhin / Shutterstock.com
Columbia became one of the leading outdoor apparel and equipment manufacturers in the World 46 trade-ins are welcome via retail locations, website, or affiliate sites WornWear and Patagonia Provisions. Columbia, predictably, is on the same page. It launched its own ReThreads programme across its US retail network to give new life to old clothing — and contribute towards a closed- loop ecosystem of recycle and reuse. The programme partners with a textile recycling solutions provider, I:CO (I:Collect). The German-based company provides clothing retailers worldwide with Patagonia and Columbia may be market rivals, but... collection bins for used clothing and footwear, which it then sorts long-running “Tested Tough” prevent. The products are built and processes to resell on second- campaign. In 1970, Boyle went to last, and the occasional rip or hand markets or recycle as raw from housewife to executive after tear is not necessarily the end of materials. the sudden passing of her husband a well-used favourite. Patagonia ASSESSMENTS — and company president — has a WornWear campaign Columbia undergoes regular Neal. With Gert Boyle at the that encourages consumers to assessments of its environmental helm, Columbia became one of repair damaged goods rather management practices — as do the leading outdoor apparel and than tossing them. Don't know the companies in its supply chain. equipment manufacturers in how to mend a sock? There's a Factories supplying Columbia the World. Last year, Columbia tutorial on the website. Feeling can expect unannounced visits sales topped $2bn, a 13 percent domestically disinclined? Good from corporate responsibility increase from 2017. The Boyle news: you can drop it off at a specialists, and any issues family continues to carry the Patagonia repair location, or identified as problematic are company torch, with son Tim catch its mobile unit of thimble- swiftly and collaboratively dealt serving as the company's CEO, thumbed heroes at a scheduled with. and grandson Joe as president. event. Customers looking for Columbia supports its suppliers Both companies recognise quality clothing at bargain prices with training and capacity that urgent action is needed can trawl the WornWear site for building programmes to ensure — now, and at a global level. second-hand treasures, and yes, sustainable factory management Their opposition to intentional obsolescence — a practice designed to fuel spending — drove them to create long-lasting quality apparel, and to take responsibility for the full life-cycle of their products. “It's perfect. Now make it better,” is the oft-quoted mantra of Columbia matriarch Boyle, and those exacting standards of excellence and innovation still drive the company. Durability and functionality are trademarks of the Columbia brand, whose products Spring 2019 Issue • www.bv.world are put through the ultimate test in the majestic and challenging landscape of America's north- western states. Business Vision The Environmental Protection Agency says more than 80 percent of textiles in the US end up in lentamart / Shutterstock.com landfills — something Patagonia The Patagonia company began in 1973 and Columbia are eager to 47 US Bureau of Land Management via WIkimedia Commons .WORLD
Patagonia is suing Donald Trump over his plans for Bears Ears National Monument in Utah systems, production efficiency, corporate philanthropy to aid the Patagonia has been lauded and safety standards. environment. as a gold standard of responsible At Patagonia, protection and Patagonia prides itself on corporate citizenry and impactful preservation of the environment being an activist company, activism. Its latest endeavour, is no after-hours fancy; it's the unashamedly mixing its corporate Tin Shed Ventures, has backed impetus for operations, and identity with politics. It has environmentally responsible start- the focus of each day's work. endorsed political candidates with ups with $75m in capital. The company honours its own strong environmental stances — Columbia's corporate citizenry admirable set of governance and they've won. is evidenced by its community rules, and once again, the supply outreach programmes and non- chain is considered as part of the profit partnerships. process. The company's HERproject Each link features high empowers women working in its standards of transparency Columbia supply chain through educational and accountability, fair-trade sessions on health, financial regulations, safe working encourages literacy, and, of course, gender conditions and decent wages. equality. Raw materials are responsibly The programme has reached sourced and processed into volunteerism more than 30,000 women in its garments designed to last a lifetime 10 years of operation. Columbia — or even generations. Patagonia among its encourages volunteerism has earned its reputation as a among its employees, allowing trusted ally for alpine adventurers. employees two leave days on full pay for Since 1985, Patagonia has volunteer work each year, and donated one percent of its annual matching employees' community sales to grassroots organisations investments — at up to $1,000 around the World — a $90m boost annually per person. for programmes that preserve and Patagonia is currently suing US Columbia employees logged restore the planet. President Donald Trump for his over 3,000 hours of volunteer In 2002, Chouinard partnered plan to scale-back the wilderness work in 2017, and more than $2m with Craig Mathews, founder of area of Bears Ears National was invested in 500 non-profit angling supplies company Blue Monument in Utah. organisations worldwide. Ribbon Flies, to launch “1% Trump's corporate-friendly Patagonia and Columbia For The Planet”. This alliance tax cuts unlocked around $10m in may be market rivals, but they of businesses brings donors unexpected profits for Patagonia are comrades in combat for and doers together, pairing — all of which it plans to donate environmental protection and 48 non-profit gumption with to its environmental cause. social justice. Brandon Truaxe
10 PEOPLE Troubled Deciem founder passes on of unknown causes
BRANDON Truaxe, the founder of Canadian skincare company Deciem, died recently — of unknown causes — at the age of 40. Deciem is perhaps best known for its skincare line The Ordinary, lauded by customers for offering luxury products at bargain prices — a business tactic which won admiration from competitors, and the support of celebrities who used the products. Truaxe is understood to have been under pressure after erratic online behaviour and bizarre posts on social media, but the circumstances surrounding his death are still unclear. According to a report in Canada's National Post, Truaxe fell from an apartment block near Toronto's downtown. Riyadh Sweedan, a Deciem employee believed to have been Truaxe's partner, told the paper: “I don't think he jumped. I think he fell.” Toronto police were called to Truaxe's neighborhood of the Distillery District after the incident, but found no evidence of foul play. Late last year, Truaxe made an online threat to close all Deciem operations because of “major criminal activity” — including financial crime — by “almost everyone” at the company. He tagged Deciem investor Estée Lauder Companies Inc in the post, after which the company distanced itself from Truaxe and his brand. A spokesman for Estée Spring 2019 Issue • www.bv.world Lauder expressed sadness at his death, however, and praised him as a visionary and brilliant businessman. Truaxe's death was announced to staff by acting Deciem CEO Nicola Kilner, Vox reported. “Heartbroken doesn't come close,” she is quoted as saying in an in-house Business Vision email. “All offices, warehouses, factories and stores please close today and take the time to cry with sadness, smile at the good times we had, reflect on what his genius built.” Truaxe was recently removed from his position at his own company, in the wake of the controversial social media posts. Deciem was founded in Toronto in 2013. 49 .WORLD COO blimey: who knew these people had so much on their plate? Praises sung at last!
NEW research suggests that the spectrum of skills than in past governance over finance, sales, evolving role of Chief Operations years. Leadership ability is still marketing, R&D and supply Officers is more vital to a key, 64 percent of respondents chain/procurement, with teams company's success than ever. agreed, but a range of other reporting to them across all these COOs are required to skills is required. The ability areas. take responsibility for a host to manage transformational NJR's research found that the of additional disciplines and change, personal courage, strong role itself encompasses a range business initiatives — and interpersonal skills and tolerance of business initiatives: continuous research by executive search and of complexity are all flagged as business improvement, optimising interim management firm Norrie vital qualities for a good COO. operational processes, and driving Johnston Recruitment (NJR) DIVERSITY OF POSITIONS key transformational projects. found that 87 percent agree that The breadth of expertise Responsibilities often include the role is currently undergoing required is reflected in the delivering cost efficiencies, change. diversity of positions previously shaping the future of the More than three-quarters held by the COOs in the study. organisation, and designing a of COOs report that their role Most (73 percent) had previously framework to turn strategy into now involves greater emphasis undertaken Operations Director operations. on driving business and digital or Manager roles, and many had Graham Oates, Chief Executive transformation, creating new held senior roles in procurement of Norrie Johnston Recruitment, business opportunities and and development, sales, says it isn't a case of one-size-fits- overseeing the allocation and marketing, production, strategy, all. “How the role is defined and prioritisation of corporate and transformation. used will depend on so many resources. COOs are responsible for a factors,” he said, “the company's Many also feel that the role vast number of functions within wider organisational structure, is a strategic one, requiring a business. The majority of those its priorities and challenges.” an involvement in talent surveyed head transformation Challenges which, in today's management. COOs are also and change, facilities, strategy, fast-paced business climate, can required to have a broader HR and IT. Many also have quickly change.
COOs are required to have a broader spectrum of skills than in past years 50 Changing perception of roles and duties of CIOs
BY DEVIN GHARIBIAN-SAKI innovators, CIOs were expected to contributing to a project have a Running an IT team has never keep the company one step ahead thorough understanding of the been an easy job, and the role of of the competition, selecting the full technology offering, outside the modern Chief Information best technologies to help them get of their own product set. Without Officer (CIO) has become much a head-start. However, as the pace this, CIOs will struggle to justify more complex. of digital evolution has sped up why deadlines haven't been met, Now tasked with managing and CIOs have had to juggle many or why particular projects don't emerging technologies such types of emerging technology, go to plan. as robotic process automation innovation has become less of a For CIOs to regain their status (RPA), machine learning (ML) priority. as innovators, they need to identify and artificial intelligence (AI) The introduction of new job employees across the business that — as well as a number of legacy roles such as chief digital officers have necessary skillsets — and products and solutions — CIOs (CDO) and digital transformation encourage them to help drive that are under a great deal of pressure officers has altered the CIOs innovation. to generate results. job specification, leaving them The real success factor lies in a While this has led to the CIO's accountable for managing more CIO's attitude. role becoming more important to “back office” IT issues. This has In modern, open-minded organisations, it has also resulted also resulted in a change in the way organisations, striving for change in a misalignment between the the role is perceived, especially at isn't an issue, and nor is there IT department and the wider board level. a lack of skills. For CIOs that business. LINES OF REPORTING do not shut down innovation, Today's CIOs are expected A few years ago, the CIO would upskilling will come naturally. to meet — and exceed — the attend board meetings, with clear With technologies continuing to organisation's goals, and to face lines of reporting in place. Now, evolve — including RPA, AI and the challenge of navigating teams one-step removed, CIOs are ML — the role of the CIO is on through a new technological being asked to report to the chief the rise. landscape. digital officer — or in some cases, The biggest challenge CIOs As more businesses continue the CFO. This evolution didn't face is the speed at which new to work towards digital happen instantly. technologies are coming to transformation, with a view to Most IT departments still market, and being prioritised by promoting agility and remaining function in silos, for example, businesses. With each of these competitive, CIOs have a lot on relying on the involvement of requiring a different level of skill to Spring 2019 Issue • www.bv.world their hands. several different teams to deliver deploy and manage, maintaining Technology has become a a full service. This disconnect has a positive attitude and being open priority for every department resulted in a large portion of a to adapting their own skills will be across a business, not just the IT CIO's day-to-day role being spent key for re-establishing the value of Business Vision team. But it wasn't that long ago managing various groups, and the CIO. that the choice of the technology ensuring that everyone involved to be deployed was the sole has an equal say. * Devin Gharibian-Saki is the chief responsibility of the CIO. To ease some of this solutions officer for Redwood Often seen as creative pressure, it's essential that those Software 51 .WORLD Viewing assets as liabilities is counter-intuitive, but digital transformation changes that
Digital natives have been restlessly questing for some time and the business world would do well to heed, advises NABIL ABU EL ATA
ASSETS used to be the foundation of businesses struggle to find the on which competitive advantage correct path forward. Accenture was forged. Previous estimates that only six percent Smaller, more nimble of companies that embrace new companies could always execute investments business activities “early and with new ideas faster, but assets confidence” are seeing higher afforded bigger companies time to hinder financial performance. respond. Now — as digitalisation The on-demand economy breaks down market barriers and this goal is all about satisfying the needs the value of speed increases — of consumers in the most cost- assets can become a liability. effective, scalable and efficient Ten years ago, it would have — without the overhead costs of way. Previous investments into been hard to believe that a new traditional business models. assets — including human bank with 50 employees, and no Bain & Company reports resources, technologies and physical branches, could unseat digital natives have generated infrastructure — hinder this goal. an incumbent with 200,000 80 percent of the growth in Even when incumbents correctly employees and trillions of dollars market capitalisation of the top anticipate the evolving needs of in assets. Today, that threat is companies over the past 10 years. their customers, layering a new real. Digital native companies like In response, most, if not all, model on top of a legacy business Uber, Airbnb and Netflix have incumbent companies have digital almost always fails to match the proven that new ideas can spread transformation programmes speed, cost and efficiency of a new quickly, and markets can be won under way. And yet, the majority business.
Most, if not all, companies have digital transformation programmes under way 52 The goal of digital transformation is to imagine a model placing technology at its core
Ultimately, the goal of digital used with confidence to build efficiency of one appliance over transformation isn't to digitalise board-level consensus. Many another. an existing state, but to imagine analytic tools provide sometimes This same concept can be a model placing technology at its confusing and conflicting data. applied to measure the efficiency core. Making the shift to digital To deliver meaningful and trusted of a business if we are able to puts pressure on all aspects of intelligence, these tools must be establish a standard number of an existing business, which must simplified and / or expanded business events over a relative maintain current profits while to cover a wider domain of amount of time for any business pivoting the legacy customer intelligence. activity. Having this metric would experience, products, services As companies are transforming, allow businesses to easily compare and operations. the underlying technology the cost-to-efficiency ratio of Digital transformation requires enablers are transforming too. their current assets against a a host of complex decisions, Industries and their metrics competitor's, or evaluate the including which legacy business allow a glimpse of the future of gains achieved by moving to a assets to replace versus adapt. business analytics. Consider, as an new model. It would also open With large capital investments, example, the use of the kilowatt- the path to purchasing units of making the choice to dispose of hour (kWh) as a measurement of productivity from third-party assets is never easy. energy efficiency. providers in much the same way as While many industry analysts A kilowatt equals 1,000 watts energy is purchased from a utility and consultancies offer best- of power. Wattage indicates how company. practice and processes to help much power a device can provide This metric, being referred business leaders deliver analogue over a relative amount of time. to as TAO.T, is currently companies into the digital age, Therefore, a 1,000 watt (1 kW) under development and could boards and executives are really microwave will heat a meal much radically change how businesses looking for clear metrics that faster than a 600-watt model. continually innovate and move Spring 2019 Issue • www.bv.world prove the proposed changes Because of this relationship with speed and confidence to will support the evolving needs between capacity and time, the meet the demands of the Fourth of their consumers — in the term kilowatt-hours (kWh) is used Industrial Revolution. most cost-effective, scalable and to describe energy use. If the 1 kW Knowing that a new model will Business Vision efficient way. microwave is used for an hour, it match the business's cost, scale Proving the case for digital will use one kilowatt-hour (1 kWh) and efficiency requirements is just transformation requires new of energy. This then allows us to half the battle. Transformation predictive and prescriptive measure the use of energy over a risks must also be managed. Here, analytic capabilities that can be period of time and compare the too, technologies are advancing 53 .WORLD
Emulation can capture all the dynamic interdependencies of highly complex business systems
in ways that allow business unknowns — businesses can emulation can capture all the stakeholders to better anticipate create a systemic and iterative dynamic interdependencies of and manage those risks. These collection of knowledge, which highly complex business systems new technologies aggregate will provide the rational and and cover a business ecosystem intelligence across organisational unbiased mechanisms that allow as wide as it spreads to reliably boundaries, and are capable established businesses to untether predict system behaviours, and of revealing new patterns of themselves from their legacy assets expose the risks that other interconnected risks which and redefine themselves in a way solutions miss. may result from any internal or that harnesses the opportunities Once business leaders can external source — including risks of the digital age. realistically quantify the financial associated with hyper-connectivity Take, for example, a bank and operational impact of any and disruptive innovations. that wants to increase its proposed changes and make Tracking known patterns transaction-processing capability, plans to manage the associated of behaviours will always be and is considering a move risks, they are correctly positioned important, but to prevail in the to blockchain to fulfil that to adopt new business models and Fourth Industrial Revolution, requirement. Early blockchain make the right moves at the right businesses must expand beyond test-pilots show promise, but the time to maintain or advance their the limits of statistical models company is uncertain how to market position. and human intelligence to move from experimentation to better understand the complex transformation. Since blockchain behaviour of business systems, is a new technology, past * Nabil Abu el Ata is the and discover all circumstances experience and statistical models author of Solving The that may cause a breakdown, or provide little to no guidance on Dynamic Complexity unwanted outcomes. whether a system can meet the Dilemma, The Tyranny Of Armed with the knowledge of future demands of its users. Nor Uncertainty and Leading what will break a system, business can it reveal how to manage the From Under The Sword leaders are free to achieve a wider transition, or what unforeseen Of Damocles. Over the Investing in today's challenges and more profound objective that risks lie ahead. past two decades, he releases their business from the Emulation provides the has worked with global confines of historical patterns. answers executives are looking for leaders in financial, for a better tomorrow By pairing the human by allowing stakeholders to test telecommunications, perception and decision- transformation plans and uncover retail, entertainment, making capabilities of artificial risks that may occur under certain services and government to intelligence with emulative conditions — even if there is no mature the science of risk- technologies — like those used in historical record of these events management. 54 physics and chemistry to predict happening. The benefit is that Investing in today's challenges for a better tomorrow .WORLD Private messaging and interactive content key to employee experience Workplace communications report stresses need for correct tools
IN TODAY'S highly competitive and a better employee experience. Private messaging, for example, marketplace, a company's success This is supported by the Q4 is a critical feature of enterprise is directly linked to the quality of 2018 State Of Frontline Employee social networks because its employee experience. Communications report released employees are more comfortable Delivering an exceptional by Speakap, a platform that sharing some things in private. employee experience is often enables organisations to engage It also allows for more open and confounded by outdated, with their front-line employees. focused discussions for teams, inefficient communications tools It found that private messages, colleagues and managers. and processes, device/digital comments and photos/videos are The platform usage data from overload and email clutter. But among the types of HR content Speakap supports this, with Private when frontline employees share that resonate best. Messages (63 percent) ranking as more personalised, interactive When a company has chosen the most common type of content content, it can lead to more to implement an employee shared in the fourth quarter of information sharing, increased communications tool, the 2018. product/promotion knowledge – available features are important. Key highlights from the
Personalised content can lead to more information sharing and a better employee experience 56 The most relevant messages are delivered to the right employees at the right times report show that news, updates updates garnered 77 percent of “The most relevant messages and events are most popular on the total likes on the enterprise are delivered to the right Mondays, Thursdays and Fridays. social network, while comments employees at the right times. Mondays had the highest only accounted for 14 percent of Most C-level executives, HR rate of news being posted (24 the total. departments and internal percent), followed closely by communications or employee Thursdays and Fridays (both 18 engagement teams care about percent). Mondays ranked highest Having the addressing certain challenges, when it came to the frequency of such as reducing email clutter, certain types of enterprise social granting access to management posts, such as private messages ability to and listening to the needs and (19 percent) and updates (18 feedback of employees. percent). group-message “By understanding their Late evenings are the least employees' communications effective times for posting events is valuable behaviours, organisations can and news. Events (eight percent) effectively build and adjust and news (seven percent) were their employee engagement posted less often from 6 pm to 12 According to Speakap's Patrick and experience programs to am. van der Mijl, “If messages are too better serve the needs of their News gets employees' vague or are not filtered to target workforce,” believes Speakap's Spring 2019 Issue • www.bv.world attention. On average, 127 news and reach the most relevant users, Van der Mijl. items were posted daily (combined it can lead to clutter, confusion, The report is an in-depth across all users) during the fourth less productivity and even poor quarterly review of frontline quarter of 2018, and 43 percent of results/performance.” employee communications and Business Vision the items posted daily were read This is where having the ability engagement trends, including between 12 pm and 6 pm. to group-message is valuable. types of updates shared, “like” The addiction to enterprise “You can ensure there is far less patterns and popular days and social “likes” is more real than spamming of irrelevant messages,” times for differing types of ever. In the fourth quarter of 2018, says Van der Mijl. employee communications. 57 .WORLD Money worries? You're not alone — and UK businesses are starting to take notice
The vast majority of UK employees — 94 percent — are suffering from money worries. So that probably comes as no surprise to you...
OF THE 94 percent of workers seven key areas of financial health. tax. Of particular concern is that worrying about money, more than More than 5,000 employees and more than a third of respondents three quarters say those worries 1,000 employers were canvassed. felt unprepared for unexpected impact them in the workplace. The results reveal an average financial costs, or a sudden loss of And where else? That's where “score” for UK employees income. A major fear was coping the money worries come from — of around 54 out of 100 — in the case of job-loss, but fewer at least in part. But this means that highlighting a need for action. than one in ten employees has around 25 million are dwelling Those “seven key areas” purchased an income protection on money worries at work — 40 include budgeting and planning, product. percent of them, according to the debt, protection, savings and When considering that a big study, indulging in morbid money investments, retirement planning, part of financial wellbeing is being worries “always or often”. properties and mortgages, and tax. confident in achieving financial The inaugural Financial The lowest scoring areas, which goals, over half of employees Wellbeing Index, from Close dragged down the overall index reported having no sort of Brothers, assesses the financial score, are protection, budgeting financial plan, and three quarters wellbeing of UK employees across and planning, and (surprise!) had no idea what tax allowances
More than a third of respondents felt unprepared for unexpected financial costs 58 Money worries were one of the single biggest causes of stress, impacting mental and physical health and reliefs were available to them. loss of talent, higher absences, a and financial education, advice Those that have some awareness reduction in retirees and higher and investment solutions, to help of allowances don't know how to healthcare costs. their employees improve their take full advantage of them. Steps are being taken to financial wellbeing. Employees' second-biggest tackle the issue, with 45 percent “Yet despite the growing money worry is paying-off debt, of employers providing some awareness … organisations seem but more than 40 percent say workplace strategies. In addition to be struggling to find clarity, that debt is not an issue — and 59 to rewards and pensions, the top transparency, and meaningful percent are confident in knowing five benefits that employees are measurement on this issue.” where to get help or advice on offered are discount vouchers, Workplace wellbeing expert debt issues. But for one in eight financial advice, retirement Sir Cary Cooper, of the University employees, debt is a significant seminars, employee assistance of Manchester, said wages had not issue. programmes, and workplace kept up with inflation, the cost-of- Looking at specific groups loans. living increases or the elimination within the workplace, almost 90 Jeanette Makings, head of of the final salary pensions. “More percent of millennials, and 72 financial education at Close people are worrying about their percent of those aged 35-54, admit Brothers, said money worries were finances,” he said. “Although that money worries affect them one of the single biggest causes many businesses have made great while they're at work. Those aged of stress, impacting mental and strides to look after the mental 55 and over are the demographic physical health. “They are also wellbeing of their employees that suffer least — but still, almost an issue for businesses, with lower over the last decade, not as many half of this cohort admits to some productivity, higher absenteeism have supported their financial Spring 2019 Issue • www.bv.world concern. and higher staff costs — which wellbeing.” He describes money Employers understand that hurts business performance,” she worries as “a bottom-line issue”. their businesses are suffering as said. “Doing nothing is no longer Providing advice and a consequence, with 90 percent an option.” support could deliver enhanced Business Vision of larger UK businesses impacted Employers are well placed to performance at work by taking by poor employee financial play a role in the solution, she away a distraction, he believes. wellbeing. That equates to 2.4 says. “Their rewards and benefits “Many working people want million UK businesses feeling the help fund employees' lifestyles. financial, as well as mental, peace- strain from reduced productivity, Employers can procure benefits of-mind.” 59 .WORLD Payments firm commits to support Chinese businesses
INTERNATIONAL payments offices in Shanghai, Zhengzhou company WorldFirst recently and Jinan. announced the launch of its new Jeff Parker, managing director localised brand name in China: 万 APAC at WorldFirst, said the 里汇WorldFirst. launch of the 万里汇WorldFirst The name translates into name was an important milestone. English as “Transfers, even miles “Our mission now is to go further away” and was decided upon after to help not just businesses in several rounds of testing with competitive exchange rates. China, but businesses around the customers and staff in China. WorldFirst has been working world who want to do business WorldFirst hopes the new name with businesses in China since with China. will help to make it the first choice 2008, and transferred more than “This is a really exciting time for Chinese businesses trading $4.5bn back into China in 2017. for us and we're proud to be around the world. To support the future playing a key part in supporting This is part of a wider strategy growth of China's small business growing trade between East and in China, and follows the recent population and the Chinese West.” launch of the World Account government's Belt and Road According to figures from the — a multi-currency platform Initiative, the company says it Chinese E-commerce Research that enables businesses to will continue to invest in China. Centre, more than 43 million manage finances across multiple WorldFirst expects to add around small businesses and sole traders currencies, and send and 40 new hires to its 40-person team in China are now able to access receive cross-border transfers at in China. It also plans to open new international markets.
The company says it will support the Chinese government’s Belt And Road Initiative 60 Shahzad Younas
10 PEOPLE
SHAHZAD Younas is the founder and CEO of Muslim dating website and app Muzmatch. The British entrepreneur opened his address to a group of potential investors in San Francisco with the (since much-repeated) words: “Muslims don't date, we marry.” Matchmaking and arranged marriages are common in the Muslim community, often co-ordinated by parents who make it their business to find a suitable partner for their adult children. Muzmatch does pretty much the same thing, using digital technology and data to hone the hunting process. Younas and his business partner Ryan Brodie entered a global competition to win backing from Silicon Valley investment firm Y Combinator — along with 13,000 others – and made the cut of the final 800 to pitch in person. The good news continued for Younas and Brodie, who took Muzmatch into the final round to be granted $1.5m (£1.2m). That was back in 2017; since then, Muzmatch boasts more than a million registered users around the World. Shahzad Younas started his working life at a bank, but wanted more from a career. Spring 2019 Issue • www.bv.world In a lucky/unlucky development, he was made redundant in 2013, and decided to press on to find a career of his own. He quickly found a niche to exploit: a dating app aimed at the Muslim community. The Mancunian told the BBC that other dating sites and apps “didn't quite get our culture”. Business Vision Brodie helped Younas fine-tune his app, and — as so often with home-brewed start-ups — success came not from coincidence, but from perseverance and hard work. “It was intense,” Younas recalls. With 1.8 billion Muslims around the world, the market was at least ready-made. The success of Muzmatch was recently celebrated on the BBC's The Boss programme. 61 .WORLD Gene genie? CRISPR puts kick and controversy into research for a new world
What is it? And why is the scientific community so fascinated by its potential applications? Read on…
IMAGINE a future where parents “fixed” version of a gene can nestle can create bespoke babies, into the new space. Alternatively, selecting the height and eye It is like a the cut can altogether knock out colour of their unborn children, an unwanted gene. or customise the size of their pets Swiss army CRISPR-Cas9 is like Find & or the longevity of their plants. Replace function in Word: it But that's not all in the future; knife, with finds the genetic data you want to some of it is already happening. correct and replaces it with new CRISPR may revolutionise how many functions material. Or, as CRISPR pioneer we tackle some of the world's Jennifer Doudna puts it in her biggest problems, like cancer, book A Crack In Creation: Gene food shortages, and organ series of short repeating DNA Editing And The Unthinkable transplant needs. Recent reports sequences with “spacers” sitting Power To Control Evolution, even examine its use as a disease in between them. When a virus CRISPR is like a Swiss army knife, diagnostics tool. But, as with any invades a bacterium, its unique with many different functions. new technology, there may be DNA is integrated into a CRISPR In 2017, the Salk Institute unforeseen problems. sequence in the bacterial genome. designed a “handicapped” version The CRISPR acronym This means that the next time of the CRISPR-Cas9 system, stands for Clustered Regularly the virus attacks, the bacteriaum capable of turning a targeted Interspaced Short Palindromic will remember it and send RNA gene on or off without editing Repeats. and enzymes (Cas) to locate and the genome at all. Going forward, CRISPR is a defining feature destroy the virus. this kind of process could ease of the bacterial genetic code and Cas9 is the most efficient the concerns surrounding the its immune system, functioning enzyme for doing this in animals. permanent nature of gene editing. as a defence system that bacteria The widely-known term CRISPR- HOW IT WORKS use to protect themselves against Cas9 refers to a Cas variety being These are the three key players attacks from viruses. It's also used to cut animal (and human) that help the CRISPR-Cas9 tech used by organisms in the archaea DNA. do its work: kingdom (single-celled micro- In harnessing this technology, 1. Guide RNA: a piece of organisms). researchers have added a new step: RNA that locates the targeted Essentially, CRISPR is a a new DNA sequence carrying a gene. This is engineered in a lab. 2. CRISPR-associated protein 9 (Cas9): the “scissors” that snip the undesired DNA out 3. DNA: the desired piece of DNA that is inserted after the break Guide RNA (a genetic cousin of DNA) serves as the “GPS co- ordinates” for finding the piece of DNA you want to edit and zeroes in on the target. Once located, Cas9 (the “scissors”) makes a double-stranded break in the CRISPR may revolutionise organ transplants 62 DNA, and the DNA you want to insert takes its place. The implications for this are vast. It could also transform everything from the food we eat to the chemicals we use as fuel. The CRISPR sequence was first discovered in 1987. CRISPR's function and potential would not be discovered until 2012. Key people involved in the initial discovery of the bacterial CRISPR-Cas9 system's function include Jennifer Doudna, PhD at University of California, Berkeley, and French scientist Emmanuelle Charpentier, PhD. Another important figure is Feng Zhang, PhD, who was instrumental in figuring out CRISPR's therapeutic applications. These four researchers went on to play crucial roles in setting up some of the most well-funded CRISPR therapeutic start-ups, including Editas Medicine, CRISPR Therapeutics, and Intellia Therapeutics. All three went public in 2016 and are in the drug discovery/pre-clinical stage of testing. CRISPR has certainly stolen the spotlight as of late, due to its efficiency, flexibility, and low price-tag. Every industry can harness CRISPR as a tool: it can create new drug therapies for human diseases, help farmers grow pathogen-resistant crops, create new species of plants and animals — and maybe even bring back old ones. Since the initial discovery of CRISPR as a gene-editing mechanism, the list of applications have ranged from genetically information on the potential has grown. Though still in early engineering long-haired goats for impact on humans. stages, “animal models” (lab higher production of cashmere to In October, the FDA lifted the animals) have provided key breeding hornless cows to avoid clinical hold and accepted CRISPR insights. As mammals sharing the painful process of shearing Therapeutics' Investigational more than 90 percent of our own horns off. New Drug Application for the genes, mice have proved ideal test Compared to research treatment of sickle cell disease. subjects. involving animals, CRISPR trials Around the same time, researchers Spring 2019 Issue • www.bv.world Experiments on mice have that edit human DNA have moved at the University of Pennsylvania shown that CRISPR can disable more slowly, largely due to ethical began a study evaluating the safety a defective gene associated with and regulatory issues. of using CRISPR for patients with Duchenne muscular dystrophy Given the permanent nature multiple myeloma, melanoma, Business Vision (DMD), inhibit the formation of altering a human's genome, and sarcoma. of deadly proteins involved the FDA is approaching CRISPR In Europe, another CRISPR in Huntington's disease, and cautiously. Some scientists have Therapeutics study has focused eliminate HIV infection. even proposed a moratorium on on a blood disorder known as Other CRISPR animal trials CRISPR trials until we have more beta-thalassemia, which results 63 in abnormal red blood cell environmental change will further production. Alongside Boston- exacerbate the damage done by .WORLD based Vertex Pharmaceuticals, Gene editing pathogens. CRISPR Therapeutics officially Gene editing can make commenced the first clinical trial can make farming more efficient. It can curb of its beta-thalassemia therapy in global food shortages for staple September 2018. farming more crops like potatoes and tomatoes. In August 2017, a team lead by And it can create resilient crops, reproductive biologist Shoukhrat impervious to droughts and other Mitalipov, of Oregon Health efficient environmental impacts. and Science University, received Regulators have shown little private funding to use CRISPR- treatment, modifying the CCR5 resistance to gene-edited crops, Cas9 to target a mutation in viable gene to enhance resistance to and the United States Department human embryos that causes the HIV. of Agriculture (USDA) in thickening of heart muscles. The While He did not provide particular is not regulating the altered embryos came back 72 physical proof of his work, he space. This is largely because percent mutation-free. presented data at the Second when CRISPR is applied to crops, Some critics say the gene International Summit on Human there's no foreign DNA being editing of embryos is unethical, Genome Editing in Hong Kong added: CRISPR is simply used to even if the edited embryos are that appeared to support his edit a crop's own genetics to select not destined for transfer and claims. for desirable traits. implantation. This type of testing HIGH-IMPACT INDUSTRIES This will impact the food we eat, currently does not receive federal Potential high-impact as food items are edited to carry funding, but instead relies on industries for CRISPR include more nutrients or to last longer private donor funding. medicine, food, agriculture, and on grocery shelves. Another area In Asia, Chinese researchers the industrial biotech space. currently generating buzz is the operate under a different Because the CRISPR-Cas9 gene- production of leaner livestock. regulatory framework. Some editing system is so easy to make In 2017, scientists at the Chinese hospital ethics committees can and use, researchers from a range Academy of Sciences in Beijing approve studies in as little as one of scientific disciplines can access used CRISPR to genetically day, with no need to seek approval it to genetically engineer the engineer pig meat that had 24 from a federal agency. China's organism of their choice. percent less body fat. medical regulatory environment is The future of medicine will Another key use of CRISPR lies also unique in that state guidelines be written with CRISPR. The is in the industrial biotech space. concerning clinical trials carry the current drug discovery process By re-engineering microbes using same weight — and legal penalties is long, given the need to ensure CRISPR, researcher can create — as official laws. patient safety and gain a thorough new materials. Since 2015, China has been understanding of unintended From an industrial standpoint, conducting human trials using effects. CRISPR can bring this is big news for modifying and CRISPR to combat various cancers, customised therapies to market creating new chemical products. HIV, and HPV. So far, results are quickly, speeding up the process. We can alter microbes to increase anecdotal. In November 2018, Climate change will increase diversity, create new bio-based reports surfaced that He Jiankui, the need to use CRISPR to materials, and make more a Chinese scientist, had created protect the food and agriculture efficient biofuels. From active the world's first CRISPR-edited industries against new bacteria. chemicals in fragrances to those human babies, twins dubbed Lulu For example, cacao is becoming involved in industrial cleaning, and Nana. He allegedly edited difficult to farm as growing CRISPR could have a great the twin embryos during an IVF regions get hotter and drier. This impact by creating more efficient
De-extinction is the effort to bring back ancient animals, such as the woolly mammoth 64 If we know where a certain gene is located, CRISPR allows us to manipulate it biological materials. Early research shows the immune Somatic modifications are CRISPR's list of potential system may dispose of Cas enzymes done on body cells such as skin, benefits is long, but the before they achieve their purpose, brain, muscle, and heart cells, technology also brings with it or may have an adverse reaction. and the modifications do not get some limitations. All these limitations have possible passed on to future generations. Possible unintended effects solutions. Germline modifications, on the and all the unknown variables If we know where a certain other hand, are done in genes are some of the drawbacks to this gene is located, CRISPR allows us carried in reproductive egg or new technology, while new ethical to manipulate it. Pet owners could sperm cells — and thus will be questions and controversies are design the dog they want with a inherited by future generations. also emerging as human trials specific colour and size. Parents Working with germline near. could hypothetically tinker with cells raises the question: can When using CRISPR for a gene that controls height or eye we ethically choose the genetic human therapies, safety is the colour to design their children. If changes we want for future biggest issue. As with any new we can isolate the genes associated unborn generations? form of technology, researchers with intelligence, that too could Despite the controversy are unsure of the entire range of be manipulated. surrounding the issue, the benefit CRISPR's effects. DESIGNER BABIES of altering germline cells is that Off-target activity is the main While the future could tell a disease can be contained or concern here. A single gene edit a different story, for now, the prevented from expressing itself. could cause unintended activity much-discussed topic of “designer Through a germline CRISPR gene somewhere else in the genome. babies” carries with it serious edit, an adult could hypothetically A possible consequence of this ethical implications and scientific never suffer from cancer, is abnormal growth of tissues, uncertainties, as much of the even if he or she has a genetic leading to cancer. As more research surrounding prospective predisposition to it. research uncovers new details, commercial gene therapies made While some ideas presented this could result in more refined, possible by CRISPR are still highly above may seem far-fetched, precise gene targeting. experimental. that could soon change. CRISPR Another issue is the possibility If we could bring back isn't an expensive, inaccessible of mosaic generation. After a extinct creatures, should we? De- form of technology. It's available Spring 2019 Issue • www.bv.world CRISPR treatment, a patient extinction is the effort to bring and in use now. From farmers to could have a mix of both edited back ancient animals, such as the researchers, CRISPR seems sure and unedited cells — a “mosaic.” woolly mammoth. Such initiatives to make its impact on our world. As cells continue to divide and are already being pursued by Business Vision replicate, some cells may get different scientific groups and repaired, while others won't. organisations. * The full version of this story Finally, these therapies may Using CRISPR for “germline can be found at trigger an undesired response modifications” is making the www.cbinsights.com from a patient's immune system. scientific community nervous. 65 .WORLD See you at The Coalface: Finsbury Park co-working plans ‘coffee shop alternative'
FINSBURY Park's first co-working private office from £267 + VAT space, The Coalface, is preparing per desk, per month. to open its doors to entrepreneurs, The Coalface provides private SMEs and start-ups looking for Private offices offices with three to 20 desks. The a conveniently situated and space is designed to be flexible cost-effective alternative to the with three and accommodating to tenants' expensive spaces on offer in changing needs; each office can central London. to 20 desks be made larger or smaller as The Coalface is an businesses expand or downsize. architecturally refurbished The Coalface also provides tenants work space set over one floor of with private meeting rooms, Clifton House in Wells Terrace, In contrast to many co- break-out areas and outside space Finsbury Park — ideally located working facilities, where for work or relaxation. Drop-in for transport links in and out economically affordable desks desks are available from £150 per of London and into the City. are in shared, open-plan month. The Coalface name honours the spaces, The Coalface offers “Co-working spaces were industrial heritage of the location; predominately private offices that designed to offer an affordable Finsbury Park was an important are genuinely affordable. Without and flexible alternative to hub for the coal industry, and compromising on quality, traditional long-term office lets,” Wells Terrace housed a coal depot amenities or space, entrepreneurs, said Jonathan Hausmann, COO in the 1800s. SMEs and start-ups can secure a of The Coalface. “However, most
‘The site offers an alternative for freelance workers who are fed up with working out of a coffee shop’ 66 The Coalface is an architecturally refurbished work space in Wells Terrace, Finsbury Park of the facilities on offer are based The Coalface has been centrally, and prices reflect this. developed by London property For more information: “For many entrepreneurs investment and development www.thecoalfacehub.co.uk and creative start-ups, being company, Dorrington plc. based in Central London is no longer critical to their business, and there is a clear market for a more affordable space outside of the City. Finsbury Park is close to the creative hubs of Hackney and Shoreditch, and is ideal for people who need to travel in and out of the city centre for meetings; its transport links mean you can be there in less than 10 minutes.” The site offers an alternative for freelance workers who are fed up with working out of a coffee shop, he said. “It's also great for Spring 2019 Issue • www.bv.world people travelling into London from commuter routes that come into Finsbury Park station — such as Cambridgeshire and Business Vision Hertfordshire. People now don't need to continue their journeys into central London, and pay a premium for the privilege of The interior of Finsbury Park’s first co-working space working there.” 67 .WORLD Ocasio-Cortez steps on toes, takes aim at sacred cows in the name of social justice
BY HEATHER LEAH SMITH particularly true with regard to CALL her a radical. Alexandria ‘Hostage crisis the US government's approach to Ocasio-Cortez doesn't mind the climate change. moniker. President Donald Trump took “I think that it only has ever happening in to the campaign trail denouncing been radicals that have changed climate change as a Chinese this country,” she said in a recent the Republican hoax, and his administration has 60 Minutes interview. But the done little to combat it. Instead, Bronx native prefers to think of Party’ there has been a loosening of herself as a consensus builder, restrictions on greenhouse gas rather than an agitator. emissions, a backtracking on Ocasio-Cortez comes to the scale not seen since Abraham environmental protection laws, House of Representatives armed Lincoln signed the Emancipation and a reduction of the penalties with the gumption to act now — Proclamation, or Franklin D for infractions. and that passion has caused some Roosevelt established Social While the White House to brand her a flamethrower. Security. maintains a head-in-the-sand And the audacious Green New National leadership seldom position on climate change, the Deal resolution she's pushing accurately reflects the views Republican party is warming up in Congress has the potential of the majority or its elected to the idea, and islands of support to transform the country on a representatives, and this is are emerging in the House lev radin/Shutterstock.com
The audacious Green New Deal resolution has the potential to transform the country 68 Katherine Welles/Shutterstock.com
‘I think that it only has ever been radicals that have changed this country’ and Senate. Many Republicans becoming more evident, and the to frontline communities, then understand that climate change poorest sections of the population it's not a Green New Deal.' And is a real problem increasingly are the ones bearing the brunt. we have a majority in the House, affecting their constituents — That doesn't sit right with so why not swing for the fences?” but most continue to toe the Ocasio-Cortez. “What we have to Frustrated with half measures party line, explicitly or implicitly do is redefine what the climate and partial solutions, the youngest endorsing the Executive Office movement is about, and we have woman ever elected to Congress stance. to redefine it in the scope of has drafted a resolution that aims Ocasio-Cortez believes there's environmental justice,” she said to jolt the US — a recognised a “hostage crisis” happening in in an interview with Rolling Stone and influential world superpower the Republican Party. “There are a magazine. — onto a path of social justice, lot of Republicans that know what “For so long, people have environmental sustainability, and the right thing to do is,” she said, thought of climate-change economic empowerment. “and they refuse to speak up.” legislation as saving polar bears, Unlike FDR, Ocasio-Cortez They're afraid of committing but they don't think of the doesn't have the House majority to political suicide, she says — but (water) pipes in Flint. They don't back her bold play, so she's taken to her, that's not unacceptable, think of the air in the Bronx. They to the streets — and social media “because we're not in the realm don't think of coal miners getting — to ensure her message resonates of politics anymore”. “These are cancer in West Virginia.” with the American people. And not questions of politics,” she says, For Ocasio-Cortez, this is an it's resonating particularly well “these are questions of society.” issue of equality and civil rights. amongst millennials. Climate change isn't the only “When we talk about defining Millennials have heard the Spring 2019 Issue • www.bv.world issue Ocasio-Cortez and co-author the scope, we have to talk about siren song of Ocasio-Cortez Senator Ed Markey tackle in climate as a social-justice issue, as and her Green New Deal, and the Green New Deal resolution. an economic justice issue, and as they feel that they finally have a They outline ideals to guide the an environmental issue. We really representative in the legislative Business Vision US through the next chapter want to lay some stakes in the branch who understands the of its history, driven by social ground that say, ‘If your legislation crisis, one who is willing to fight entrepreneurism and solidarity. is not dealing with jobs, if it's not for what's right. The impacts of human- dealing with infrastructure, if it's “Many Americans are really induced climate change are not dealing with bringing justice worried about the economic 69 lev radin/Shutterstock.com .WORLD
Ocasio-Cortez has taken to the streets to ensure her message resonates with the people
state of this country, where to Republican representatives as muscle cars, milkshakes, and people working full-time jobs beholden to their campaign cheeseburgers. “How can we cannot support their families. It's donors, but she warns that party afford to do this?” the sceptics astounding to me that this is not loyalty won't prevent her from wail — but the real question for seen as a national crisis,” she says. speaking out against campaign Ocasio-Cortez is: how can we More than 200 million corruption wherever she sees afford not to? Americans earn less than $20,000 it. “There are certain issues US government agencies have a year — 40 percent of the where I'm going to make some released findings showing the cost population. Raising the minimum Democrats mad if they're trying of climate change — now, not in wage to $15 an hour would enliven to deliver paydays for Wall Street the distant future. Reports directly economic activity, according to donors. But that doesn't mean attributed 247 deaths, and $91 bn Ocasio-Cortez, who cites Seattle as I'm going to burn the house down in damages, to climate change a case in point. over it. impacts in 2018. By the end of “I want to be able to tell my the century, costs associated with grandchildren that we established climate change in the US could a single-payer [health-care] ‘Fighting for reach more than $500 bn. system, tuition-free universities, The Green New Deal outlines and that we saved our climate for the American a plan that promises to tackle their future, because we decided the country's shortcomings in to be courageous in the moment social equality and environmental and make it happen.” consensus’ foresight to create economic She believes the issue comes opportunity for American workers down to who is financing the and communities — the true political campaigns of elected “I believe that I'm fighting drivers of economic growth. officials. In the current system, for the American consensus,” she “We have never gotten out of whoever holds the purse strings says, and statistics bear her out: 70 desperate situations in this country makes the policy. percent of Americans believe in with a scarcity mindset,” Ocasio- “What we are seeing now is a universal healthcare, 90 percent Cortez said. “We have never ruling class of corporations, and a want to get “the money” out of ‘austeritied' our way to prosperity, very small elite that have captured politics, and 67 percent think ever. It's never happened. The government,” she said. She immigrants contribute to the only way we got out of the Great insists that big donor campaign country's economy and culture. Depression is through a massive contributions undermine the More than 80 percent believe that injection of public investment, democratic process, converting “climate change is a real, systemic and a massive expansion in public elected officials into the puppets and urgent problem”. ambition, and the idea of what is of special interest groups. “They Critics of the New Green possible in America. don't cast a vote unless their sugar Deal are eager to paint Ocasio- “We're not going to get out of daddies tell ‘em what to do,” she Cortez as a radical, intent on this through incrementalism. We 70 said. Ocasio-Cortez was referring outlawing American icons such need Moon-shots.” Analytics key to Africa getting its fair share of services trade
UNCTAD-UN project’s experts pool wisdom to grow regional economies and increase benefit from value chains
AFRICA needs to step-up its has proved challenging, says analytics game to play a more Stephen Karingi, director of active role in global and regional UNECA regional integration value chains. and trade division. “One of the This was the consensus among Paul Akiwumi, UNCTAD's main stumbling blocks to the African countries participating in division head for Africa (Least implementation of trade services- a joint UNCTAD-United Nations Developed Countries and Special related policies is the lack of Economic Commission for Africa Programmes), said services understanding and quantification (UNECA) project on services offered African countries “an of services trade,” he said. trade. important opportunity to diversify Raising the profile of The project is helping production away from traditional services in Africa may offer African experts to measure the sectors and engage in activities promising opportunities for contribution of services to regional with higher value added”. export diversification, services- value chains, and to explore the “Some services — transport, led transformation and services role of domestic and foreign firms. financial, and information and trade-led growth. Africa stands to In partnership with Ethiopia, The communication services — are key gain from sharpening its ability Gambia, Kenya, Mali, Nigeria and contributors to trade and improve to measure and analyse services Togo, UNCTAD-UNECA recently the ease of doing business across value chains. delivered a three-day “train-the- borders.” Policy-makers are committing trainers” seminar in Addis Ababa, Services trade could support to levelling up their services Ethiopia. the aspirations of the African analysis skills to design services The focus was on how to Continental Free Trade Area policies aimed at increasing unlock potential in three services (AfCFTA) agreed by African integration into regional and sectors — transport, financial leaders in 2018. The AfCFTA global value chains. In practical services, and tourism — in those seeks to establish a single market terms, unlocking this potential countries, and help African for goods and services. requires services trade to be better countries acquire the necessary Sixteen countries have ratified understood and supported in skillset to measure and monitor the agreement, but turning the policy-making processes, experts services trade value chains. AfCFTA vision into a reality say. Spring 2019 Issue • www.bv.world Business Vision
AfCFTA seeks to establish a single market for goods and services 71 .WORLD Once more with feeling: Koç Group manufactures sensitive robotic arm Vehbi Koç’s life of innovation and inspiration has led to stellar possibilities. BV’S JASON AGNEW talks Turkey — and technology.
IN 2010, the Turkish Koç health, education, and culture. He the Internet of Things (IoT) and Group, in conjunction with Koç went on to set up the Koç School sensors, robotics technology, University, founded Inventram in 1988, and the eponymous biotechnology, nanotechnology, as an early-stage technology university five years later. AI, big data and cloud, automotive investment company — with the The creation of Inventram was technology, electronics and aim to become the country´s a logical step for the organisation, durable goods, and defence- leading investment and solutions combining its business acumen industry technology. provider for investors and with the university´s innovation The company has already entrepreneurs. potential and technological received more than 6,500 project The university was set up in capability. So successful has the applications. So far, it has made 1993 by group founder Vehbi endeavour been that in 2016, the two company investments, 41 Koç (1901-96) to further his giant Japanese investment firm patent investments, six patent commitment to education. Mitsui & Co acquired a 30 percent licences, nine technology A devoted moderniser, Koç stake, after two years of talks. Both commercialisations and 26 observed the rapid scientific parties agreed that the strength preferred-partner joint ventures. advances being made around the of the Turkish economy was the The first company Inventram World. “(We) are racing towards main driver behind the deal. founded was Kuantag AŞ new discoveries in outer space,” Inventram operates in four (also known as Quantag he said. “In order for us to close main fields: intellectual property Nanotechnologies), which the gap, and in preparation for (IP) rights management, delivers high-end nano-products the future, we must educate our early-stage equity investment, to specific markets. It has young people in the best way technology commercialisations developed “Quantum Tagging”, possible.” and preferred partner a novel method to identify and Philanthropist Koç created his programmes. It is an active authenticate products, enabling foundation in 1969, investing in investor in disruptive technology: cost-effective high-security
NASA is planning to use Inventram technology in the robotic arms of a Rover bound for Mars 72 Quantum Tagging is a novel method to identify and authenticate products authentication for the global bound for Mars, as well as for an Turkish government imposed automotive industry. astronautical robot, “Robonot”. heavy wealth taxes on non- Next up was CY Vision, an The story of Vehbi Koç was Muslims. Koç acquired many augmented reality (AR) and always one of innovation and collapsed or confiscated virtual reality (VR) company inspiration. The serial pioneer companies — and then hired the operating in Silicon Valley and revolutionised Turkish business former owners to run them. After established in 2016 as a spin-off practices, and was determined to the war, he convinced General from the Koç University lab. A help modernise the republic. Electric to let him build a light year later, the company closed a bulb factory, and in the 1950s Series A funding round, led by he diversified into making cars, Vestel Ventures and Intel Capital, household appliances, textiles, which raised $7m. The technology and radiators. He entered into CY Vision´s computational further joint ventures with holographic technology, says has garnered Siemens — creating a cable Wendell Brooks, senior vice- factory — and Fiat, producing president of Intel Capital, has the much interest tractors. potential to play “a vital role in In 1963, Koç consolidated the development of the broader these diverse industries under ecosystem and … the potential from NASA the umbrella of Koç Holding to redefine human-computer AŞ. In a career spanning 75 interaction”. years, he created more than Inventram is in the final The young Koç worked as a 100 companies, and the group stages of creating a new robotics teenager in his father´s grocery has 80,000 employees — and a technology company based on its store in Ankara, but was soon turnover of more than $40 bn. patented Sensobright technology, taking his own path. He registered Koç became Turkey´s wealthiest which aims to give a robotic arm a his first company in 1926, and citizen; so rich, in fact, that after sense of touch vaguely comparable became the local representative his funeral in 1996, his corpse was to that of a human arm. “When of the Ford Motor Company and snatched and held for ransom. (It we applied this technology to Standard Oil (now Mobil). Ever was later found buried in another artificial skin,”, says Inventram aware of current events, he realised grave.) director-general Cem Sosyal, “we the potential of construction Inventram has been hailed as Spring 2019 Issue • www.bv.world got a robot arm which is sensitive when Ankara was proclaimed the a trendsetter in Turkey, a parallel (like a human arm). new national capital; he began to Tesla's technology which has What does that mean? Today's trading in building materials, proven so influential in electric technology can place 20 ‘nerve supplies and hardware. Koç's car development in the US. This Business Vision endings' on a robot´s hand.” prescience was rewarded, as the might seem an ambitious claim, The emerging technology has city´s population grew from just but the history of success and garnered much interest from over 30,000 to almost 300,000 in trailblazing that Koç had behind NASA, which is planning to use 25 years. him suggests that not even the sky it in the robotic arms of a Rover During World War II, the is the limit. 73 .WORLD Jugglers of the World, unite: women find ways to balance careers with motherhood
BY NAOMI SNELLING from it I invested back into the IN A WORLD where the drive for business. equality is setting the workplace When she started, Brierley was agenda, sometimes it's easy to just doing sweets, but in 2016, she forget one simple point: biology invested in her first chocolate- isn't equal. It's still women who making machine. “It cost £600, get pregnant and give birth. and I had a friend and business The skills and insights that mentor who encouraged me to go women bring to the table — and for it. Now I have several machines the boardroom — are increasingly that cost considerably more — valued, yet there remains an but back then that represented a uncomfortable juggling act. significant investment.” It's a thing. It can't be ignored. She operates from a workshop Countless women are juggling premises at her home, but is family and work responsibilities considering expanding to new like circus performers. premises because the business has Behind the scenes, lobby grown so rapidly. groups have been painstakingly “A huge part of that success chipping away at millennia of has been down to social media, entrenched attitudes, identifying Facebook and Instagram,” she and outlining best practice. Hannah Brierley says. “I'm very fortunate that in “Businesswoman and mother- this day and age I can sit at home of-three” sentences are falling out so I put the surplus for sale on and do my advertising — and it's of fashion in the UK, but the issue Facebook — and it all took off. It free!” frequently comes up. kept growing, and customers kept Elegantly Sweet is fast For some entrepreneurs, coming back to me.” becoming a “real” family business; being a mother is something that Hannah credits part of her Hannah employs her second informs and directs their business success to increasing consumer eldest daughter, Heidi, to help success, and their understanding support for independent with admin, packaging and of the “motherhood massif” can businesses, rather than big-name design. “She's very arty and she vastly improve how they pitch and brands. “I've also always tried to enjoys it.” grow their business. build really good relationships Brierley believes that Birmingham-based Hannah with customers. Lots of them are witnessing her hard work and Brierley is founder and owner mums, and I think mums are dedication has been good for her director of Elegantly Sweet, an quite a united force; they like to children: “they see the sacrifices online store that has carved a support one another.” and the rewards”. And she says she niche for itself selling “bespoke In terms of time-management, would never go back to being an treats”. Hannah is managing to pull off employee. “I lost one job when I Brierley set up the business the supermum trick of being a had my eldest child — I was on my in 2015, while on maternity mum in the day and working on six-month probationary period leave with her fourth child. “My her business during what she calls and they got rid of me because I husband works away in the week “the twilight shift”. needed to take days off when he and the plan was for me not to go “Once the kids were in bed, was sick,” she says. back to work,” she says. “I didn't I had free evenings and it was Mandy Garner of the think I could juggle four kids and exciting to see how quickly the Working Mums organisation says keep going with my nursing shifts. demand was growing,” she says. that stories like this illustrate “It was coming up to Christmas “Early on, people were asking the importance of educating and I was making handmade what else I did … I guess that was a employers in the 21st century to sweets for the children and I bit of a challenge and an impetus create win-win situations. 74 went overboard and a had lot left, for me. Whatever money I made “From our work on best Elegantly Sweet is an online store that has carved a niche for itself selling ‘bespoke treats’ practice, it is clear that there are flexibility can be seen as a benefit Creating regular schedules, a number of things that help by employers who need to cover finding networks that will offer women — and men — to work different time zones. support, avoiding isolation by more effectively when they have A smorgasbord of corporate getting out regularly and talking caring responsibilities,” Garner schemes is available to support to others who are in a similar says. “The most basic is creating parents, from parental leave and position are all useful techniques. an environment where there is an childcare support through to As for the holy grail — healthy understanding about the kind of the breast milk delivery service work life balance — both women issues and stresses they might be announced last year by Goldman agree that things are always in a facing. ” Sachs. “On the practical side for state of flux. You just have to do Garner also suggests that employees and the self-employed, the best you can, wherever you are an individual's desire for work organisation is key,” says Garner. right now. PARENTAL LEAVE BOON FOR DIAGEO WORKERS BY ALIYA VIGOR-ROBERTSON employees will be able to have opportunities for contract RAISE a glass to alcoholic regular contact with their workers to enter the business, beverage producer Diageo, newborn — with a positive impact and allow junior members to which is setting a landmark for on their bonding experience, a step-up to a new role. gender equality. boon for working families. The bigger challenge that The UK company is showing Statistics show that parents businesses such as Diageo face that — regardless of size or FTSE who are given this opportunity is ensuring the right systems 100 ranking — companies can return to the workplace more and processes are in place for offer real-world benefits to their engaged to the business. Even returning parents, to avert the staff. It is allocating its male so, some organisations remain anxiety that mothers and fathers Spring 2019 Issue • www.bv.world workers the same amount of concerned about the impact of sometimes feel after taking time time-off as female colleagues for the initiative, financially and in away from their job. leave when a baby is born. terms of productivity. If businesses can establish Diageo believes this will lead But an organisation offering these processes to support Business Vision to improved staff retention, this policy as standard can better returning parents, the firm collaboration and workplace plan and offset the impact believes, policies offering relationships. Whether single of an employee's absence. extended parental leave will parents or couples, Diageo Businesses will be able to create prove a success. 75 .WORLD Be wise and digitalise VAT, report urges UK's SMEs
A recent report has laid out a digital roadmap that could catalyse up to a £57bn productivity pay-out for UK SMEs over five years
THE DIGITALISATION of VAT traditional business practices, in April should catalyse an annual research reveals that roughly one benefit of £6.9bn — or £46bn ‘Digital in five SMEs are still unaware of over five years — in net gains in MTD and its associated impact: turnover and growth. snowball a productivity pay-out. For sole The Productivity Payout: traders, the predicted average net UK Small Businesses And The effect’ is gain in annual revenue is £1,900, Digital Economy, was released while a small business with 10-49 by independent economic likely employees should see an average consultancy Volterra Partners, increase of £18,000 to their top in association with accounting line growth. software solution-providers Intuit productivity, by enabling better “Unregistered” businesses are QuickBooks. cash-flow and human resource not registered with HMRC for The new economic model — management and freeing time for VAT or PAYE. Sole traders are built on predicted behaviours of more productive activities such as registered for VAT but not PAYE. small business owners as a result sales, marketing or training. With no rollout of MTD beyond of social and financial drivers — Having adopted one form of VAT-registered business, and no suggests that once businesses digital technology, businesses further action by government or integrate technology to become tend to adopt others, saving more industry, the model predicts SMEs month-to-date (MTD) compliant, time and reaping the rewards from will see a total productivity gain of a “digital snowball effect” is likely cumulative productivity benefits £46bn over the next five years. to occur. from digital interoperability. If industry, government and The spill-over benefits will Despite the gains to be SMEs work together to catalyse drive increases in SMEs' levels of made from the digitalisation of further growth of the productivity
Increase in Average increase in Average increase in turnover (£) turnover per business turnover per worker (£) (£)
With no employees 0.6bn 200 200 (unregistered)
With no employees 2.2bn 1,900 1,700 (registered)
1 to 9 3.9bn 3,400 900
Small 3.8bn 18,000 900
Medium 1.4bn 41,100 400
All SMEs 11.9bn 4,400
Predicted increase in annual turnover (£) if all SMEs experience a catalyst to adopt all digital processes within financial management software Source: Volterra Partners 76 Month-to-date compliance enables better cash-flow pay-out is predicted to be of that extra time. “This report significantly higher — £57bn over sets out a clear and positive view the same period. ‘The roll- on the benefits that digitisation This £57bn hinges on the can bring, not just to self- continued rollout of MTD out must employed businesses, but to the (beyond the first wave as currently economy as a whole,” said Andrew proposed but not finalised), the be carefully Chamberlain, deputy director integration of Open Banking into of policy and external affairs at financial management software, handled’ the Association of Independent and SMEs collaborating with the Professionals and Self-Employed. software industry on training and But there are challenges support. also predicts that the wholesale too, he warned: “The roll-out Intuit QuickBooks vice- and retail trade, construction, … must be carefully handled to president Chris Evans said it was professional and manufacturing ensure businesses can transition time for small businesses “to sectors will see the biggest impact to digital systems over a sensible embrace digital with unabated on productivity growth. London time frame, and with considerable optimism”. has the highest average regional support from both government The report highlighted a potential benefit per business of and industry.” digital-led approach that would £5,700/year. Michelle Kennedy, co-founder transform small businesses, he Manufacturing is the sector and CEO of the @peanut app believes. with the highest potential benefit said digital tools were “absolutely “The transition to digital will per business of £8,100/year, while essential to any business looking not be without stumbling blocks,” retail will see almost as much with to grow and succeed in such Evans says, “but it presents a £7,600/year. turbulent times”. huge opportunity to streamline High levels of competition “Businesses who fail to adopt Spring 2019 Issue • www.bv.world operations, drive efficiencies and in cities and in the retail sector digital-first thinking risk losing simplify tax. It will enhance cash- has driven wider adoption of the agility other businesses gain flow management, and allow digitalisation — and higher when they are more open to using SMEs to get paid faster and access productivity. digital behaviours,” she said. Business Vision capital.” A substantial proportion of the “Without a progressive, tech The model predicts the largest productivity increase is derived mindset, companies across productivity benefit of digital from time saved, so businesses the spectrum of industry may adoption will be felt by London that are already more productive significantly hamper their and England's south-east. It are able to take greater advantage prospects of long-term growth.” 77 .WORLD
MANY HAGGARD RETURNS: HAUNTED BY TAX?
A SURVEY asked 1,010 self-employed people promoting its Self-Employed app, which makes it across the UK what they would rather do instead possible to take pictures of receipts. The software of file their tax return. will then auto-categorise expenses, and allow users One in five said they would rather give a to prepare self-assessment forms without fuss. speech to 100 strangers; the same fraction would The software includes automatic mileage- rather spend a night in a haunted house or hold tracking within the app, and the ability to integrate a tarantula for one minute. One in seven would with bank accounts to automatically keep track of rather get trapped in a lift, while one in eight invoices and scheduled payments from clients and would rather jump out of a plane. Presumably with customers. a parachute. QB Assistant is a conversational chatbot Half of those canvassed worry that they haven't that combines data-driven insights and natural filled in their tax return correctly, two in five feel language processing to unearth valuable insights stressed about doing the task. One in four people for people who work for themselves. It must hear will leave it until the last moment (the final two some interesting natural language from those weeks). filling out the tax forms. Another finding in the study commissioned by The research, conducted by Opinium from accounting software provider Intuit Quickbooks January 5-15, also revealed young people were was that women take twice as long as men (12.3 twice as likely as older people to submit their hrs vs 6.7 hrs) to complete their tax return. (They returns at the last minute. probably do it more thoroughly, although statistics One in 100 people was reportedly planning can't prove that.) to file their return after the January 31 deadline. QuickBooks has an angle, of course. It is Some things never change.
78 Gender balance bid by digital office broker brings optimism
HUBBLE — the digital office He is to lead the design team, Hubble's completion of a Series broker, not the telescope — has unify the strategy across its suite A funding round that raised £4 doubled its technology team in of products, and set out the UX million from a group of industry- its largest recruitment drive since guidelines. leading investors, spearheaded by being founded in 2014. Alexandre Richardson has JLL Spark Global Venture Fund. The change has created been appointed as Hubble's Hubble's technology platform is an even split between men data scientist to support its quest set to attract more medium-sized and women in its engineering to become increasingly data- businesses (50 people or more) as department. The business has driven and build its data-set it plans to become the “booking. recruited data scientists, software internationally. com” of flexible office space developers and product managers His expertise lies in machine- worldwide. to support its growth trajectory learning, data analysis and Tom Watson, CTO and and meet the increased demand visualisation. co-founder of Hubble, said for flexible office space from TRADITIONAL INDUSTRIES technology had already businesses. Ryan Crawford has joined transformed work practices and The platform hosts London's as quality assurance head, was overturning the world of largest real-time dataset on the with experience working with commercial real estate. “The flexible office market, listing companies including Shazam platform allows businesses to over 5,000 offices — and placing and onefinestay. Nathan Bratby search the whole of the flexible business in a new office every three and Chloe Donegan both started office market by up-to-date hours. As the UK's technology as product managers; they come pricing, availability, contract industry launches a campaign from technical and commercial length and amenities,” he said. to create one million tech jobs backgrounds and aim to build “Such a large data by 2023, Hubble has made eight products to revolutionise infrastructure requires the right Spring 2019 Issue • www.bv.world new technology hires over recent traditional industries. team to build and maintain — months. Isabela Hodorog and Stella from the live information right Rick Hartley has joined as lead Loizou join as product engineers through to the user experience. designer, bringing more than to apply cutting-edge technologies “Our latest recruits will help Business Vision 15 years' experience in creating such as React and Node.js to us in our ambition to create digital products and customer Hubble's platform, and Ollie the world's largest platform for journeys for the businesses like Crook joins as junior product flexible office space, and we're Compare The Market, The engineer. looking forward to expanding our Sunday Times and EDF Energy. The recruitment drive follows team at all levels to achieve this.” 79 .WORLD Betelhem Dessie
10 PEOPLE BETELHEM Dessie has been recognised as the youngest pioneer in Ethiopia's tech scene. The teenager was born and raised in the walled city of Harar in the east of the country — and her career began at the tender age of nine. The web and mobile technologies developer was born in 1999 — and wasted no time making her mark. Dessie is founder and CEO of robotics lab iCog ACC (Anyone Can Code), and co-ordinates nationwide programmes in her homeland. Her name has spread beyond Ethiopia's borders thanks to her involvement in developing the world famous (and well-travelled) robot Sophia, who was one of the off-beat “invitees” at Davos 2019. Dessie credits her (unnamed) father as the inspiration and supporter in business. She started work in his Harar electronics shop, and made her own seed funding by sending audio and video files to his customers. Her interest in computing and coding was piqued — and her career had begun. She honed her video-editing skills and learned about computer maintenance and mobile phone software. By the age of 10, she was coding in HTML, and teaching computer skills to her classmates at school. Dessie got government recognition for her work in her community and international fame after interviews with Ethiopian media and TV news organisation CNN. She moved to Addis Ababa with her parents and was (despite her age) employed by the government as a developer. By the time she was 12, Dessie was working for the Ethiopian Information Network Security Agency, and trained 40 girls for a United States Embassy project called Girls Can Code. For the Ethiopian government, Dessie took part in a software programming project to map irrigation projects in the country. She has four patented projects copyrighted under her own name (including the irrigation map), and three in collaboration with other software engineers. Last year, as a third-year software engineering student at Addis Ababa University, she was identified by Quartz Africa as one of the young African innovators to watch in 2019. We're 80 watching. Kaj Torok
10 IF SOMEONE says the words “fast food”, what springs to mind? Here at BV headquarters, a quick in-house vox-pop survey revealed that three of five undernourished slaves go PEOPLE for “burger”. More in-depth statistics from surveys conducted in Sweden came up with similar results; it's clear that a good burger takes some beating. And the Scandinavians are in luck looking for a premium product with the MAX burger franchise. Yes, it's a chain — but we're a long way from Mackey-Dees or Burger King here. MAX chief sustainability officer Kaj Torok is an idealist who wants to create nothing less than The World's Best Burger — and, if possible, save the planet at the same time. “If you ask a Swede why they visit a MAX restaurant, most of them won't say it's because we're doing something good for the climate”, Torok admits. “They will say it's because we have the best tasting burgers. We can't work to make the World better without having the best burgers.” A survey by ISI Wissing, which analysed 250 brands, found MAX has won the first part of the battle, rating top of the industry's most-satisfied customer list — for the 11th year in a row. So, as the website blurb says, “Every bite is good for the environment.” MAX measures 100 percent of its product emissions, including all greenhouse gas emissions in the calculations — “from the farmers' land to our guests' hand”. Customers' and suppliers' travel to and from MAX restaurants is factored-in, along with waste. And when 100 percent isn't enough… add 10. “We plant trees that absorb and store carbon dioxide from the atmosphere as they grow. Not only do we carbon- offset the emissions from all our food, we go further to capture the carbon dioxide Spring 2019 Issue • www.bv.world equivalent of another 10 percent of our emissions.” Over the years, MAX has implemented hundreds of measures to reduce the emission of greenhouse gases. “I think we have the widest climate analysis in the restaurant industry since 2008,” says Torok. “In just the food industry, I don't think Business Vision there's more than a handful that make as wide an analysis as we do. “I think more companies should do this, but they don't have to face the fact that they are polluting more than most people realise. Yeah. That's the ugly truth. They will see their business in a totally new way, understand what they're doing in a totally new way.” Fries with mine, please. 81 .WORLD Consequences of trade tariffs can be far-reaching — and detrimental to all concerned
A report launched at the World Economic Forum in Davos provides global policymakers with an evidence-based overview of the economic and social consequences of trade tariffs
A REPORT commissioned by from an increase in poverty to this, business needs to prepare the International Chamber of deteriorating health outcomes. the ground to allow policymakers Commerce (ICC) as part of its “Almost all tariffs benefit a to move without risk,” he said. trade agenda — an initiative in narrow group at the expense of a “The ICC is helping to achieve partnership with Qatar Chamber broad one,” the report says, “have that by channelling the voice of of Commerce and Industry — unanticipated effects beyond business and others into a more outlines 10 possible effects of their original focus areas, and actionable debate on multilateral a return to broad-based tariff take more time to repeal than to trade reform.” increases. implement.” The director general of the While recognising that trade ICC secretary general John World Trade Organisation, liberalisation has resulted in some WH Denton said the report Roberto Azevedo, said the private negative consequences, the report highlights the “counterproductive sector generated many of the — prepared by the Economist nature of addressing social and new ideas on trade reforms that Intelligence Unit — stresses that economic problems through tariff governments then take forward. tariffs do not provide an answer. increases” as well as the pressing “It is important that the private The consequences, illustrated need for movement on reforming sector understands this role — it is by way of two case studies, range trade governance. “To enable more important than ever today.”
Almost all tariffs benefit a narrow group at the expense of a broad one 82 Policymakers can promote more flexible trade agreements that do not pursue free trade at all costs
The report provides China's desire to retain a Entitled Aftershock: The three recommendations for rules-based trading system. Pervasive Effects Of Tariff Hikes, policymakers to consider 4. Policymakers can promote the report was launched in Davos before levying tariffs, along with more flexible trade during the World Economic alternative tools. agreements that do not Forum's Annual Meeting 2019 They are: pursue free trade at all as part of discussions taking 1. To prevent further tariff costs, and instead allow place in the Global Dialogue on increases, policymakers countries some latitude to Trade. The dialogue is part of must first be honest about pursue other societal goals, a global consultation to support the negative effects that such as environmental multilateral trade reform. trade liberalisation has protections. Supported by the World had on certain groups, not The report also notes that Trade Organization (WTO), the least to shed light on the governments can increase their Organisation For Economic Co- inadequacy of tariff hikes low expenditure on training operation And Development as a solution. programmes for groups that lose (OECD) and regional 2. Policymakers should insist out from free trade. development banks, the digitally on a deliberative process Sheikh Khalifa Bin Jassim Bin enabled platform convenes open and data-driven societal Mohammed Al Thani, chairman dialogue among multilateral impact assessments of ICC Qatar and a member of institutions, think-tanks and for all major proposed the ICC executive board, said: businesses. tariff increases. Such “The EIU report reflects Qatar Once in place, it is hoped that assessments would shift Chamber's shared view with the platform will help to develop the burden of proof onto ICC that for governments and recommendations for meaningful those advocating tariffs policymakers to make informed reform and modernisation of the and provide insight into decisions, evidence-based analysis rules-based trading system. Spring 2019 Issue • www.bv.world their wider effects. is essential.” 3. Policymakers should The report examines 10 areas Download Aftershock: The address their grievances where tariffs may have unintended Pervasive Effects Of Tariff with more effective tools. negative effects — from Hikes from the ICC website. Business Vision To tackle China's unfair disproportionately impacting https://iccwbo.org/ treatment of foreign the impoverished and increasing publication/aftershock- investment, policymakers inequality to exacerbating pervasive-effects-tariff- should use multilateral political polarisation and hurting hikes/ forums and leverage sustainable economic growth. 83 .WORLD Putting heart into homes, with help from the Earth
By HEATHER LEAH SMITH The solution, according to IF HOME is where the heart Egyptian entrepreneur and is, what does that mean for the civil engineer Radwa Rostom millions of people living in (pictured right), lies in social makeshift slum dwellings? entrepreneurship and sustainable The question becomes more building. insistent when placed in the Rostrom founded Hand Over context of Egypt, a country of in 2015 to address the country's expansive and largely unpopulated growing housing needs — an deserts surrounding a strip of estimated 500,000 new homes are fertile and densely inhabited land needed every five years — and along the Nile Delta. empower low-income families in The UN estimated in 2000 that a country where nearly half of all the Egyptian population would households survive on $6 or less reach 96 million by 2026 — but per day. and towards housing that respects they were short by a full decade. Inspired by her volunteer work the environment, contributes to In 2019, estimates put the figure as a student, Rostom decided community development, and at already more than 100 million, she could help children more as encourages enterprise. making it the most populous an engineer than as a tutor. She Rostom looked to ancient country in the Mena (Middle launched Hand Over to help building techniques, using readily East and North Africa). The families move away from informal available mud, gravel, and sand, population continues to grow at shanty structures — which to create the most sustainable, a rate of about two percent every typically lack connection to waste resilient, and economical year, further exacerbating the and water infrastructures and structures. “The idea of building country's housing crisis. have subpar safety and security — with earth and local materials has
Amrdahish via Wikimedia Commons
‘The idea of building with earth and local materials has been in our community for a long time’ 84 Ventus via Wikimedia Commons
Millions of Egyptians live in makeshift slum dwellings been in our community for a long NGO collaborations, and local says Rostom. “One of our time because it is very viable for initiatives. main methodologies in work our climate,” she says. “It definitely Homeowners or real estate is spreading knowledge and meets the standards of safety and developers interested in awareness.” quality, and it has proved to be sustainable building can look Rostom already has much resilient. We only need more to Hand Over for eco-friendly to share from her experience education and awareness about housing solutions — and these with energy efficiency, energy such techniques, and we still management systems, and green need support from authorities to building techniques. But she include (them) in the building realised that she would have to codes to make the permits and Rostom develop her business skills to registration more feasible.” transform an idea into a start-up. Hand Over's main focus is split has been “In the very beginning, the along three tracks: community idea was still not mature,” says development, commercial granted three Rostom, who simply knew she services, and educational wanted “people to live in humane outreach. Hand Over designs and fellowships and resilient housing” but was builds public spaces that foster unsure of what steps to take to community development, such as realise that dream. Rostom has housing units, health clinics, and commercial services help been granted three fellowships educational centres. fund its educational outreach to help develop her idea. Her It collaborates with local programmes. Hand Over innovative approach has slashed Spring 2019 Issue • www.bv.world communities in the creation delivers training sessions and residential construction costs. of these spaces by recruiting workshops for architecture and “The main vision we have, and student volunteers as architects civil engineering students to gain that we are striving to realise, is and engineers. Community hands-on experience in earth that we want to create a model Business Vision stakeholders are included construction, environmental that is flexible, adaptable, and in the design and building design, sustainability, community affordable for rehabilitation processes. Hand Over funds this participation, and design. and upgrading of informal arm of the business through “The students are one of settlements and unprivileged donations, awards and grants, the main pillars of the project,” areas, anywhere.” 85 .WORLD Lending tops £6bn in milestone year — and investors to benefit from ‘increasing transparency'
IN 2011, NEW gross lending matures. Although 2018 saw climbing by 20.9 percent. amounted to £92m. It now marketplace lending grow at an Lending to consumers saw takes a shade under six days annual rate of 20.3 percent, this slower growth of four percent, for marketplace platforms to is half the pace of expansion seen reflecting a more cautious originate that amount — and last in 2017. approach from consumers year marketplace lending hit a The rise of invoice finance towards spending. record £6.1bn. has been a key driver in recent Property lending grew by The value of gross marketplace growth, as SMEs look beyond just 2.1 percent in 2018, but lending conducted by tech- traditional banks to finance performance across the sector enabled platforms (including their working capital. Invoice is not uniform. The struggles crowdfunded or peer-to-peer finance lending increased by of Lendy contrasts with the loans) reached a quarterly 104.8 percent compared to 2017, solid performance of the likes record of £1.6bn in Q4, up 13.9 reaching £1.1bn in 2018. of Landbay, LendInvest and percent year-on-year, according Business loans — borrowing Crowdproperty. to Link Asset Services' inaugural to invest, buy new premises, make To build a true picture of Marketplace Lending Index. acquisitions or refinance — broke the investment performance of But the pace of growth is the £2bn lending barrier for the marketplace loans for investors, starting to slow as the market first time, with gross lending returns must account for fees,
Annual growth rate in new lending — the red line tells the story 86 Annual gross new lending, by category, from 2011 to present costs, term length, and losses. the pressure consumer finances Growth is also bringing tighter The latest available data shows net have been under from prolonged regulation, marking the next return on a typical marketplace weak wage-growth and inflation; stage of the sector's evolution. loan stands at 4.1 percent. personal insolvencies reached a This should calm investors' nerves Although still an attractive yield, seven-year high in 2018. around rising loss rates, and compared to other fixed income Secondly, on a technical level, encourage lenders to improve assets, this is down from 5.4 a smaller proportion of loans are the transparency of performance percent in the third quarter of covered by a contingency fund. reporting, allowing investors to 2017, and from 6.5 percent at the These funds are designed to add assess risk against returns across recent peak in 2016. additional protection against platforms. There are two components to defaults, and previously flattered But increasing losses are net returns: the net yield (which the figures. already dragging on returns, accounts for the initial interest Net returns may have fallen, and Brexit outcomes could rate and platform fees), and the but they remain attractive put businesses and borrowers' loss rate on loans. compared to other fixed income finances under pressure, Davies Net yields have remained assets of a comparable term. warns. “The subsequent rise in steady at 7.2 percent. However, This should continue to support defaults would place a new level rising loss rates are reducing demand from investors, and of strain on marketplace lenders' the overall net return by 2.9 marketplace lending is set to grow risk-management strategies, percentage points. This has further. Link/Brismo forecasts testing their loan servicing worsened since 2016, when net gross lending will grow by a and recovery approaches in a losses reduced returns by just 0.9 further £1bn in 2019, an annual downturn.” percentage points. growth of 20 percent. Rupert Taylor, chief executive There are two key factors Mark Davies, managing of Brismo — which powered behind this trend. Firstly, losses director of Link Mortgages the Lending Index — said UK have risen on loans across the Services, said 2018 was a “milestone platforms were the first non-bank Spring 2019 Issue • www.bv.world market, largely among riskier year” as marketplace lending loan originators to recognise borrowers with higher interest moved into the mainstream. that attracting a diverse funding rates. Platforms have started to fill base relies on demonstrating A weaker economic backdrop the funding vacuum created by accountability for performance. Business Vision has affected the ability of a the retreat of many traditional “As disclosure evolves further … growing minority of businesses lenders, meeting the borrowing investors will benefit from reduced to meet the terms of their loans. needs of SMEs and consumers, complexity and improved insight, There is a deterioration among and creating a new asset class for which will further increase the older consumer loans, reflecting investors. appeal of these assets,” he said. 87 SAME VALUES NEW DRIVE
NADER JABER WINNER OF THE 5K & 10K LEBANESE CHAMPIONSHIPS Rutger Bregman
10 PEOPLE Taking a stand at Davos, and a tilt at super-rich tax cheats
LOTS OF interesting stuff comes from the Davos World Economic Forum, not all of it predictable or formulaic. This year a Dutch historian, Rutger Bregman, was the source of a particularly juicy titbit. Bregman, author of Utopia For Realists, had a close look at (or under) the emperor's clothes — and joyfully berated the assembled billionaires, who found themselves in the unfortunate position of having nowhere to go. He took the invited-but-captive attendees at the recent Swiss mountain gathering to task with one killer question: Why do rich people fail to pay their fair share of taxes? It's a fair point. Bregman noted, without surprise, that it was a subject that no one — in a hall of high earners, some of whom arrived by private jet — wanted to broach. One of his most publicised comments from Davos was, “It feels like I'm at a firefighters conference and no one's allowed to speak about water.” Industry had to tackle the taxation issue, he said, citing the US's high tax regime of the 1950s as a counter to arguments that economies with high personal taxation were not successful. From the 50s onwards, things worked out pretty well for dreamers of the American Dream. Spring 2019 Issue • www.bv.world “Taxes, taxes, taxes,” went another of his much-publicised quotes, “all the rest is bullshit, in my opinion.” Such straight-talking is unusual at events of this profile — and all the more welcome (to BV, at least) because of that. While some attendees sympathised with Bregman's sentiments, he was pretty much Business Vision walking the plank over shark-infested waters. A brave man, with a bold — but sensible — agenda. Estimates say billions of dollars are lost to tax-avoidance each year. That money could be used to alleviate poverty in the developing world, one of Bregman's fellow panellists noted – something that even the most conservative billionaires must have found hard to contest. 89 .WORLD
Awards
AN INVITATION TO VOTE Readers are cordially invited to vote in the Business Vision (BV) Awards 2019 Programme. BV seeks out candidates with outstanding corporate achievements but all eventual winners will have convinced the judging panel that they have the vision to maintain and build on their success well into the future.
Spring Visit our website www.bv.world/awards to place your vote or email us at [email protected] announcement We will send you a copy of the nomination form.
The information you provide will be highlights used by the BV judging panel but not shared with third parties. As a small token of our thanks you will be entered in a free draw for a one-year complimentary subscription.
No vote is wasted. Your recommendation will receive our full attention. Dhofar Insurance Company SAOG — Most Innovative Insurance Company | Oman 2019 INSURANCE is the promise of protection, and few organisations in the sector take their duty more seriously than Oman's Dhofar Insurance Company SAOG. Dhofar's customer-centric focus over the past three decades has resulted in a strong brand and a loyal client base. With a network of 42 branches covering the sultanate, from bustling cities to tiny towns, Dhofar is the leading national insurance provider. It offers insurance products ranging from health and life policies to property and disaster cover. Dhofar's mission is always to be proactive, with a personal touch. It contacts customers with advance warnings and preparation advice as part of its disaster cover, and offers extra assistance when needed. The firm's leadership is fully committed to the company promise, providing customers — and the community at large — with hands-on support, when and where required. The BV judging panel notes that Dhofar applies that same agile response to market trends and client needs, continuously adapting to develop the most relevant insurance solutions. The judges are delighted to present Dhofar Insurance Company with the 2019 award for Most Innovative Insurance Company (Oman). JP Morgan — Best Trade Finance Banking | United States 2019
JP MORGAN is a household name in the banking world — one that's synonymous with trusted trade finance. The multinational bank is one of the largest financial institutions in the World, with a strong presence in all major global markets. JP Morgan leverages its worldwide network to provide clients with specific, local expertise to maximise the efficiency of their trade activity. The bank facilitates trade with finance solutions for supply-chain buyers and providers, as well as with its export and import finance solutions. JP Morgan has developed a suite of trade solutions to help clients mitigate risk, secure financing and optimise operations — and all that information is accessible via its intuitive digital platform, giving clients instant “any time” access to transactions – in multiple languages. The BV judging panel applauds the bank as a highly capable partner in the global trade market, and names JP Morgan as the winner of 2019 award for Best Trade Finance Banking (United States).
Averda — Best ESG Waste Management Solutions | MENA 2018
LEADING waste management group Averda tackles environmental challenges from a tradition of technical engineering excellence. The Averda story is rooted in engineering innovation, and that focus continues to drive the company's development and growth. Averda addresses environmental, social, and governance Spring 2019 Issue • www.bv.world (ESG) concerns across its operations in the Middle East and Africa (MENA) with a highly responsible and technologically creative approach. Serving millions of people and managing thousands of tonnes of waste a day, the Dubai-based company concentrates on local recycling and high-tech anti-pollution strategies across three continents. Averda partners with charities across the globe to achieve its ESG initiatives and Business Vision empowers its employees with various wellbeing and educational programmes — enabling them to act as agents of change in their own communities. The company has earned top green certifications and regularly submits to independent assessment to maximise improvement and ensure transparency. The BV judging panel congratulates Averda on its steady growth — 25 percent annually — and its 2018 Best ESG Waste Management Solutions (MENA) award win. 91 DHL Express — Best Global Logistics Partner | United .WORLD States 2019
EVERYONE'S in a hurry nowadays, and turnaround and delivery times are as crucial as the cost. Global interconnectedness is more than a modern buzz-phrase: it's bread and butter for US distribution giant DHL Express. Its powerful international network — 360,000 people in more than 220 countries and territories worldwide — means DHL has this one covered. “We're already thinking about what the world in 2050 might look like,” the company says — and it's preparing for the logistics challenges that lie ahead. It also places a priority on customer satisfaction, with the stated goal to “bring joy and prosperity to the people we serve”. With its established network, history of punctual, trouble-free deliveries worldwide, and positive attitude, the BV judges were won-over. The 2019 award for Best Global Logistics Partner (US) duly conferred.
BankDhofar — Most Innovative Banking Team in GCC 2019
FOR MORE than two decades, BankDhofar has been building a reputation for its foresight and reliable growth. As one of the largest banks in Oman, BankDhofar already claims a lion's share of the market and continues to steadily grow. Innovation drives the bank's prosperity and expansion, and its customer-centric focus ensures it keeps a finger on the pulse on the evolving needs of its clients. The latest tech advances are seamlessly integrated into BankDhofar's digital banking services, providing instant access and convenient controls for all its customers, from individual accountholders to corporate clients. The BankDhofar team references data-backed evidence to tailor products and services to match clients' needs. In 2013, BankDhofar introduced Maisarah Islamic Banking Services to meet the financial needs of many customers throughout the Sultanate of Oman. The BV judging panel cites the bank's cultivated culture of performance and its exceptionally engaged workforce as supporting factors in its decision: BankDhofar wins the 2019 award for Most Innovative Banking Team (GCC).
Patagonia — Most Dedicated Corporate Environmental Activism | US 2019
PATAGONIA'S founder Yvon Chouinard launched the iconic outdoor sportswear company from his love of wild landscapes — and the simplicity and exhilaration of the adventures to be had there. The company has been a conscientious advocate for environmental activism ever since, and today pledges one percent of its profits — no measly sum, with nearly $1bn in annual revenue — to help hundreds of grassroots non- profits around the world. The antithesis of “fast fashion”, Patagonia produces durable products that last generations, and it sponsors WornWear programmes to repair or return customers' old Patagonia items. In 2017, it donated all Black Friday sales to charity — some $10m in one day. Patagonia puts the force of its empire behind its driving mission: to fight for the planet with all the resources at its disposal, from its business and investments to its voice and ingenuity. The BV judging panel is pleased to present Patagonia 92 with the 2019 award for Most Dedicated Corporate Environmental Activism (US). Saudi International Petrochemical Company — Best Sustainable Growth Leadership KSA | 2019
THE Saudi International Petrochemical Company (Sipchem) is a chemical manufacturing company with environmental responsibility at its core. The company specialises in business analysis and simplification, and applies strict corporate and environmental controls throughout its business practices. Sipchem is one of the biggest players in the field, proving that sustainability and profitability can go hand-in-hand. Sipchem's steady growth can be attributed in part to the ingenuity of its staff which have — through the company's Eureka policy — generated over 15,000 ideas that have saved the company about $17m since 2011. The BV judging panel believes Sipchem's forward-thinking initiatives, which use technology to get children thinking about problem-solving, will inspire new generations of skilled innovators. The judges congratulate Sipchem on its 2019 Best Sustainable Growth Leadership (KSA) award win.
Barclays Bank Kenya — Best Sharia-Compliant Investment Bank | Kenya 2019
BARCLAYS Bank Kenya is a financial institution that inspires trust with its sound governance policies and conscientious investment strategies — and its Sharia-compliant products enable clients to manage their wealth while respecting their faith. Islamic banking practices are rooted in honesty, integrity, and trust, and these principles are the cornerstone of the solutions offered by Barclays Bank Kenya. The bank offers current and saving accounts for private individuals, small and medium-sized enterprises, and corporate conglomerates — all of them Sharia-compliant. Barclays Bank Kenya provides clients with investment and financing solutions that uphold the highest standards. Assalamu'alaikum, the Islamic greeting goes — Unto you, peace — and the ethical focus of the bank certainly brings clients peace of mind. Its positive, affirmative and coherent approach convinced the BV judging panel. For the second consecutive year Barclays Bank Kenya is a winner, taking the 2019 award for Best Sharia-Compliant Investment Bank (Kenya).
Goldman Sachs – Best Investment Banking Advisory Team | Global 2019
DOES this firm need any introduction? Thought not. Goldman Sachs' name is an industry gold standard in and of itself, offering investment banking services to corporations, financial institutions, funds and governments. Goldman Sachs invests its own capital alongside that of its clients, and its Merchant Banking Division (MBD) has been the hub of long-term principal investing activity for Spring 2019 Issue • www.bv.world three decades. Since 1986, the group has invested some $155bn of leveraged capital across countries, industries and transaction types. With nine offices in seven countries, MBD is one of the World's largest managers of private capital. It offers expertise to companies, investors, entrepreneurs and financial intermediaries. Business Vision Goldman Sachs invests in communities, too, supporting development and revitalisation projects such as affordable housing construction, job creation, education, healthcare and more. That's enough for the BV judging panel, which is happy to grant Goldman Sachs the 2019 award for Best Investment Banking Advisory Team (Global). 93 Club Med — Best Holiday Club Brand | Europe 2019 .WORLD
“ALL-INCLUSIVE” doesn't quite convey the full spectrum of stress-free fun awaiting guests at any of Club Med's 24 natural holiday venues. Club Med guests are entitled to delectable dishes and world-class entertainment as part of their package. Club facilities include serene spas — with a host of pampering services — and the offer of more than 60 sports activities and courses led by expert instructors. The company considers its GOs — or “Gracious Organisers” — the heart and soul of the organisation, and employs more than 23,000 enthusiastic and extraverted professionals worldwide. The GOs hail from disparate backgrounds, comprising 110 nationalities and 30 languages. From romantic beach getaways to alpine sports adventures and family-friendly holidays, Club Med manages all the details — so holidaymakers can focus on the fun. The BV judging panel confirms Club Med — for the second consecutive year — as an award-winner, this time for the 2019 award for Best Holiday Club Brand (Europe).
Wye Tree Asset Management — Best Structured Credit Specialist | United Kingdom 2019 EXPERT market knowledge, thorough analytical skills and open communication combine to give clients good reason to entrust their nest- egg to Wye Tree Asset Management. The UK-based firm specialises in asset-backed security investments, and has proven capable of consistently exploiting structured credit opportunities. Wye Tree has developed a systematic approach to identifying fresh means to unlock the hidden value of this often-overlooked asset class. Customer relations are based on long- term wealth management, and backed with in-depth, open dialogue — enabling Wye Tree to offer personalised and insightful money-management. The firm first attracted the attention of the BV judging panel for its ethical development of corporate identity and community contributions. This year the judges are delighted to note the positive correlation between the firm's charitable contributions and return on investment — and present Wye Tree Asset Management with the 2019 award for Best Structured Credit Specialist (UK).
Terpel — Best Employee Engagement Company | Colombia 2018
TERPEL is a company of Colombian origin, tradition, and outlook with a 50-year history of promoting the country's development, growing shoulder-to-shoulder with its affiliates, and working under strict corporate governance and business ethics principles. Terpel — Colombia's leading distributor of liquid fuels, natural gas for vehicles, and lubricants — attracts and retains motivated employees. The company's integrity and co-operative practices are key to the success of its business. Terpel's supportive work environment sets the company apart and inspires long-term commitment from staff. Most of the team members have dedicated a decade of their lives to Terpel, and their personal and professional growth is enhanced through programmes designed to integrate team members, align priorities, improve competencies, and recognise achievements. The BV judging panel commends the company's open and direct lines of communication, and presents 94 Terpel with the 2018 Best Employee Engagement Company (Colombia) award. Amazon — Best e-Commerce Value-Creation | Global 2019
A VALUE chain is a business model that includes the full range of activities needed to create a product or service, from procuring raw materials and manufacturing functions through to marketing activities. Online giant Amazon well understands the use of this analytical framework. It assumes full responsibility for logistics, customer service, and product returns via its Fulfilment By Amazon (FBA) system. If a customer orders an FBA item and an Amazon owned-inventory item, the company ships both items to the customer in one box, a gain for efficiency. The use of FBA is optional for sellers, and this choice makes the products of third-party sellers eligible for Amazon Prime free two-day shipping and other benefits. This logistics infrastructure is one of Amazon competitive advantages, and it caught the eye of the BV judging panel. The result? A win for Amazon: the 2019 award for Best e-Commerce Value-Creation (Global).
Mahindra & Mahindra — Best Corporate Governance | India 2019
WITH increasing levels of concern about globalisation, the World needs examples. It needs global companies that work to the benefit of all stakeholders. Mahindra & Mahindra is one such company. While the “Three Ps” of sustainability are generally understood as People, Planet and Profit, Mahindra & Mahindra is known for adopting a fourth “P” — practicing good governance as a process. Mahindra has made strong corporate governance its foundation for delivering innovation and sustainable growth across the many sectors in which it operates. For Mahindra & Mahindra, good corporate governance is an enabler — and the BV judging panel was particularly impressed by the company's track record for being ahead of legal requirements, and by its interactive approach to ensuring continual adaptation of governance practices to ensure the strongest possible foundation for the business. The judges were unanimous, and without hesitation, in declaring Mahindra & Mahindra as winner of the 2019 award for Best Corporate Governance (India).
Banco Santander Chile — Best Bank Governance | Chile 2019
BANCO Santander Chile is the largest bank in the country, in terms of total assets and equity. That top Spring 2019 Issue • www.bv.world position comes with considerable responsibility, and Banco Santander ensures that its corporate governance meets the highest international standards. It brings to its customers and clients the guarantee of sustainable management in the long term. Banco Santander always ensures compliance with best international practice, a model that is recognised by external institutions. “By delivering on our purpose, and helping people and Business Vision businesses prosper, we grow as a business,” observes Ana Botín, executive chairman of the group. Wise words which resonated with the BV judging panel. The value created by the bank's business benefits all concerned, and communities are best served “by corporations that have aligned their goals to serve the long-term goals of society”. Exactly. The judges are pleased to announce Banco Santander Chile as winner of the 2019 award for Best Bank Governance (Chile). 95 Columbia Sportswear Company — Most Impactful .WORLD Global Empowerment Initiatives | US 2019
OUTDOOR enthusiasts and advocates have made Columbia Sportswear Company a global giant in the apparel, accessory, and equipment markets. Founded in 1938 — making hats in the rugged state of Oregon — Columbia has grown to become a leading global manufacturer and distributor of outdoor sportswear and equipment. The company aims to “do right” by the people it reaches, the places it touches, and the products it makes. Through Columbia's Empowering People programme in 2017, its employees donated more than 3,000 hours to charitable causes. Around $2m was invested in 500 non-profit organisations worldwide, and 9,000 women received financial literacy and health education via flagship HERproject training. Columbia has a lifelong love of the great outdoors, and partners with diverse non-profits to support often under- represented groups in the outdoor lifestyle community. The BV judging panel recognises Columbia for its outstanding leadership in corporate responsibility with the 2019 award for Most Impactful Global Empowerment Initiatives (US).
Wari Group — Most Innovative Digital Finance Solutions | Africa 2018 MOBILE money — the use of a mobile phone to transfer funds — is one of the most disruptive factors to hit traditional financial systems in recent years. It enables increased financial inclusion, and has spurred some creative innovation. The Wari Group was founded a decade ago in Senegal with the goal of organising Africa's abundant resources into one accessible, scalable, multidirectional market. Through strategic alliances with prominent partners, the Wari network now spans 60 countries and boasts more than 500,000 service points around the globe. Wari customers use the platform to connect to financial and commercial services, ranging from domestic payments and international money transfers to airtime top- ups and transport services. The Wari platform allows for seamless trade in 38 currencies, using cash cards, digital wallets and cryptocurrencies. For its role as a growth accelerator in Africa, and a facilitator of financial transactions worldwide, the BV judging panel presents Wari Group with the 2018 award for Most Innovative Digital Finance Solutions (Africa).
I:CO — Most Disruptive Textile Partner | Germany 2019 I:COLLECT (I:CO) envisions a more circular economy for the future of fashion, a closed loop of recycle and reuse. The German-based company was founded in 2009 to provide innovative global solutions for the collection, reuse, and recycling of used clothing and footwear. Through a worldwide network of partners in 60 countries (and counting), I:CO has established an expansive take-back system to divert unwanted items from landfills and maximise the full lifecycle of raw materials. Through I:CO partnership, stores become points-of-sale as well as collection points, driving up store traffic and sales while engaging with consumers in a meaningful way. Reward incentives fuel customer participation and increase the company's global reach. I:CO's certified sorting and processing facilities prepare some items for the second-hand market, and convert others into repurposed raw materials for new creations. Some of fashion's top brands trust I:CO to help them achieve their sustainability benchmarks — leading the BV judging panel to name I:CO as the winner 96 of the 2019 award for Most Disruptive Textile Partner (Germany). TPS Eastern Africa — Outstanding Contribution to Sustainable Tourism | Eastern Africa 2019
WORLD citizens are increasingly aware of tourism's negative impacts, and many are seeking travel alternatives that are kind to the environment, local society, and economy. Tourism Promotion Services (TPS) Eastern Africa is a hospitality company specialising in culturally aware and environmentally responsible tourism — from upscale hotels, resorts and palaces to rustic forts, safari lodges and camps. Operating under the brand name Serena Hotels in six countries in Eastern Africa — and three in Asia — TPS seeks to empower the residents of the communities where it operates, and to add a beneficial ripple to their economies. Although TPS operates internationally, it's “loyal to local”: TPS hires staff and sources materials locally, supports regional social initiatives, reinvigorates local artisanal crafts, and safeguards each area's natural resources. For its dual focus of maximising socio-economic benefits while protecting the environment, the BV judging panel presents TPS Eastern Africa with the 2019 award for Outstanding Contribution to Sustainable Tourism (Eastern Africa).
DAMAC Properties — Best Luxury Real Estate Developer | Middle East 2019
AS ONE of the leading developers in the Middle East, DAMAC Properties has established a reputation for delivering luxurious excellence. DAMAC has also contributed some iconic architecture to the skylines of cities across the region. Since 2002, the real estate company has handed-over more than 24,330 properties — from dream homes for young families to appealing opportunities for investors. DAMAC spares no expense in realising its vision of sumptuous style. It selects, recruits and retains top talent, whether in-house employees or award-winning architects, designers and contractors. DAMAC properties boast prime development locations and the most sophisticated building materials. With a development portfolio of more than 40,000 luxury hospitality units in progress, DAMAC extends a gilded invitation to guests and investors. The BV judging panel appreciates a bit of opulence now and then, and confers on DAMAC Properties the 2019 award for Best Luxury Real Estate Developer (Middle East).
Riyad Bank — Best Sharia-Compliant Financial Solutions | KSA 2019
RIYAD BANK is well-positioned to meet the diverse banking and investment needs of its clients. It's one of Spring 2019 Issue • www.bv.world the top three financial intuitions in the Kingdom of Saudi Arabia in terms of assets, and caters to the unique concerns of its Islamic customers and clients. In addition to adhering to Sharia principles, Riyad Bank offers a full range of traditional financial solutions. Riyad's Islamic banking services range from everyday transactions to financing and investment solutions for individuals and corporate clients — and all Riyad Business Vision products are regularly revised and deemed to be in accordance with Sharia law by a committee of esteemed Islamic scholars. Riyad upholds the cultural traditions of its client base with innovative products and services that help them to plan and preserve their financial futures — a feat deserving of recognition, in the eyes of the BV judging panel. Said judges are pleased to announce Riyad Bank as the 2019 winner of the award for Best Sharia-Compliant Financial Solutions (KSA). 97 .WORLD ‘Non-standard' financial information closely tied to share prices, university finds
Want to look into the future of a company? Research by Australia’s UTS (University of Technology Sydney) provides some pointers. LEILAH SCHUBERT reports.
MEASURES that aren't part financial measures should be of statutory earnings reports reported. — such as the frequently used Non-standard — or non-GAAP “underlying profit” — are better (Generally Accepted Accounting indicators for investors of the Principles) — measures are used future performance and value of by companies in media releases a company. “The results have turned out and other communications to Research presented at the to be quite striking,” said the augment the measures they International Accounting lead researcher, Professor of are required to report under Standards Board (IASB) annual Accounting Stephen Taylor of accounting standards. research forum in Sydney UTS Business School. “They have However, these non-standard compares “non-standard” significantly higher predictive measures are sometimes eyed financial information from ASX ability for future profitability, for with suspicion because they are 500 companies with statutory example.” considered open to manipulation. reporting measures from the same The findings help inform On the other hand, the GAAP firms over more than a decade. the current debate about which measures, which companies are
The research revealed non-GAAP measures were smoother and less volatile 98 Firms choose to report non-standard financial information because of demand from investors legally obliged to produce as between two horses, but over many measures come out in front is on part of audited figures for the different tracks,” says Taylor. the investment side. investment market and regulators, The results suggest firms The IASB is currently reviewing have been criticised because they choose to report non-standard frameworks and standards take a “conservative” or cautious financial information because for the reporting of financial approach to reporting financial of demand from investors for performance. information. measures of financial performance “Our research is relevant to “There has been a significant that are more predictable and that the debate about whether firms increase in the frequency of are more closely tied to a firms' should be encouraged or even Australian firms prominently share price. required to include non-GAAP reporting non-GAAP earnings As well as being a better financial information in reporting measures,” says Taylor, who is predictor of future performance requirements, and/or break the also a member of the Australian and value, the research revealed statutory earnings number into Accounting Standards Board non-GAAP measures were also more line items,” Taylor says. (AASB). smoother and less volatile. “The results suggest a single “But we didn't know whether Taylor notes that earnings earnings figure can't fulfil the role this increase is because the reports fulfil two functions: of both stewardship and relevance information is helpful to investors providing information to facilitate to investors in relation to valuation or self-serving, or both.” the “stewardship” of a business by and future performance.” The research aims to answer its management, and providing The paper, Non-GAAP this question by comparing for information to inform the Earnings and the Earnings the first time several different decisions of investors. Quality Trade-off, co-authored Spring 2019 Issue • www.bv.world properties of non-GAAP earnings “Where the statutory measure by Taylor, Doctor Andrea Ribeiro measures with their closest wins the race is when it comes and Associate Professor Yaowen accounting standard equivalent. to getting bad information into Shan, will be published this year This involved comparing the earnings in a timely fashion,” in the journal Abacus. Business Vision statutory information reported by Taylor says. The research was funded the firms and the non-statutory “This reflects the ‘stewardship' through an Australian Research information provided in their or control role of financial Council grant and the former news releases from 2000 to 2014. reporting.” Centre for International Finance “It is like running a horse race But where the non-GAAP and Regulation (CIFR). 99 .WORLD Ken-Ichiro Kemei on a chip...
10 PEOPLE
KEN-ICHIRO Kamei, a micro-engineer at Kyoto University, has been making headlines for his “bodies on a chip” technology. It's not as gruesome as it sounds; in fact, this is a story of hope. Kamei's glass chips — they look a bit like microscope slides — have a clear silicone layer with enough genetic information “to recreate humans and animals”. Kamei builds his own microfluidic chips with a laser cutter and a 3D printer. He places cell tissue into six chambers connected to microchannels and, well, it gets complicated, OK? You can trust BV not to bog you down with science and technical terms. But the process has proven useful in determining the efficacy and safety of cancer drugs, which is what the BBC reported, and what you need to know. Kamei wants to replicate organs, systems — and entire bodies — using the chips. With channels, valves and pumps, his chips can mimic a living system. The potential for medical research has not been lost on those with more in- depth knowledge than the BV editorial team. The World Economic Forum recently named “organs-on-chips” as one of its top-10 emerging technologies. But it's more than organs and chips for Kamei, who aims to mimic whole animals. The primary goal has so far been biomedical, but the chips also allow the study and better understanding of wildlife species, helping in the bid to protect threatened species. So… could he knock us up a mammoth? Quite possibly. There is also potential for species conservation, and the technology could be used to ensure the ethical treatment of livestock, limit harmful side-effects of some agricultural practices, and create products to satisfy the peculiar demand for body parts of endangered animals. 100 Tiger penis grown in a lab, anyone? Ivory may take longer. Bill Gates on the loo Paolo Bona/Shutterstock.com
BEFORE there was Musk, before there was Bezos, before there was Zuckerberg… there was Gates. Bill Gates,the World's second-wealthiest person (to 10 Bezos, despite his eye-watering divorce settlement — see elsewhere in this issue). He has made a name for himself with his prescience, generosity, and his business acumen. PEOPLE With a personal fortune of around $96 billion, Bill Gates has proven, since founding Microsoft in 1975, that he has one of the sharpest minds around. With his wife, Melinda, he has also shown that he has heart. They have invested billions: into research into malaria and Alzheimer's, and health and education initiatives. Philanthropy at such a level is a rare and wonderful thing, and the environment stands to benefit, too. Gates has recently been heard raving about a “breakthrough technology” that he believes is a game-changer: a toilet that functions without being connected to a sewer. The reason for his interest is clear; hundreds of millions of people around the globe don't have enough clean water to drink, never mind flush a toilet. On the www.weforum.org website, Gates has espoused enthusiasm for a new toilet that can “filter wet waste, and separate out solids for safe incineration”. This, he says, can deliver “a huge improvement in health and quality of life without astronomical investment”. The website describes it as “a pragmatic take on a seemingly intractable problem”. Er… someone please give Bill and weforum.org a nudge. The “breakthrough technology” has been around since the mid-1800s. It's called a composting toilet. These loos are built on a slightly elevated platform. A breakthrough called gravity gives motion to the motions, sliding things gently downhill. By adding a cupful of another technological marvel, sawdust, human waste is transformed by the heat of decomposition into organic matter that can later be scooped from a Spring 2019 Issue • www.bv.world hatch, and safely used as fertiliser for fruit trees (not leafy vegetables). The adage, for those who own such dry toilets, is: if it's yellow, let it mellow, if it's brown, help it down. Urine provides any necessary moisture for the composting process. No water required. No incineration, either. Business Vision There is little or no odour, and the only maintenance needed is clearing out the accumulated compost — it looks like regular earth or potting compost — every few months. In a technological World, we tend to look for technological solutions — especially if natural alternatives require a little effort. So in a lazy, pampered age, it's probably just as well that Gates is pushing this one out there. 101 .WORLD Airborne behemoth to go extinct as orders fall — and smaller craft rule the roost
Future A380 orders cut by Emirates, putting up to 3,500 Airbus jobs in doubt
AIRBUS will stop making the staff are employed at Filton, near world's biggest passenger aircraft, Bristol, working on other parts of the A380 “Superjumbo”, because the jets. Emirates airline — the largest The giant first The giant A380 first took to the customer — has drastically cut its air in 2007, and while popular with order. took to the air passengers it proved challenging CEO Tom Enders said in a and expensive to build. It was statement that the decision was in 2007 designed to connect long-haul “painful” to Airbus, which showed hubs such as London, Dubai, a healthy net profit of €3bn New York and Tokyo, but smaller, (£2.6bn) for 2018. Last deliveries wide-bodied jets have proven of the expensive A380 will take As many as 3,500 jobs could be more popular and practical. The place in 2021 — but Airbus affected by the move, but Airbus more fuel-efficient smaller aircraft expects to deliver about 900 other did not give details of which jobs are able to link secondary cities commercial aircraft this year. may come under scrutiny. It said — making bypassing the crowded It even anticipates increased it would start discussions with hubs a realistic option. production — for clients including partners about the issue. Airbus had initially expected Emirates — of the smaller A330 A380 production has moved to make about 1,500 A380s, but and A350 aircraft. between European locations over that figure will drop to a total Airbus said Dubai-based the years, with final assembly of just 250 after the decision to Emirates had reduced its A380 now taking place in France and halt production. The last 14 of orders from more than 160 to just Germany. The wings for the A380 the airborne behemoths — with 123, leaving it “no basis to sustain are designed and constructed by capacity for 800 passengers — will production” despite some sales to Airbus UK at Broughton, in north be delivered to Emirates over the other airlines. Wales. Design and engineering next two years. Vytautas Kielaitis / Shutterstock.com
The wings for the A380 are designed and constructed by Airbus UK at Broughton, North Wales 102 Get on the road...
...with BV motoring .WORLD Need, or greed, for speed? It can never get fast enough for team Bloodhound LSR
Brits are back in the bid for a land-speed record, and RICHARD THOMAS has a good sniff around. And despite the recent trend in BV, this beast isn’t powered by electricity…
BRITISH entrepreneur and Warhurst sold it to US transport mechanical engineer Ian engineering company Wabtec, for Warhurst is no stranger to speed. He believes a sum that quickly burned a hole He grew up around cars and in his pocket. A little over a year engines in his family's garage the project is later, he stepped in to rescue the and haulage business. After Bloodhound land-speed record studying Mechanical Engineering commercially project, which had entered and Design, he bought Melett, administration just 10 days earlier. a Yorkshire-based company Recently relaunched as that manufactures and supplies viable Bloodhound LSR, the project automotive parts — including aims to beat the existing land- turbochargers. facility in China. In 2014, speed record of 763mph, set in During Warhurst's time at Warhurst and his wife were said to 1997 by former RAF pilot Andy the helm, Melett expanded — in be worth more than £70m, most Green, driving the Thrust SSC. the UK and overseas. There was of which came from the value of The project was launched as an office in Poland, a subsidiary the business. Bloodhound SSC in 2008 by in the US, and a manufacturing In December 2017, Richard Noble, the driver of
Ian Warhurst stepped in to rescue the Bloodhound land-speed record project in December 2018 104 Bloodhound LSR
The Bloodhound LSR in its new livery at the public launch event the car that set a 1983 record of software. I'll try that next time... now is cash-flow — something he 633mph. October 2017 saw the is willing to solve. “I will provide The project draws from Bloodhound (the vehicle, not the the funding so the project can different technologies. The main organisation) tested “at low speed” carry on month-on-month, so power source is a rocket supplied in public. It reached 210mph on we can actually get to the goal as by Norwegian-Finnish company the runway at Newquay Airport quick as we can,” he said. “That Nammo. The rocket is fed via a in Cornwall. But then came goal is to take the car down to fuel pump powered by a Jaguar funding issues, and Bloodhound South Africa.” V8 car engine. And to get the was placed into administration in On South Africa's Hakskeen car rolling from zero, there is the December 2018. Which is where Pan, in the northern Cape Rolls-Royce EJ200 jet engine from Warhurst comes in. province, the Bloodhound team a Eurofighter Typhoon (on loan In early December, Warhurst's will conduct higher-speed runs. from the Ministry of Defence). son sent him a text message about This time, 400 – 500mph (644 – Bloodhound intended from the project's demise. Might he 804 km/h), then a crack at the the outset to inspire the next want to buy the Bloodhound? land-speed record — and four generation of engineers; it was He got in touch with the figures for the first time. Warhurst's reason to get involved. administrators, who confirmed Once again, Andy Green will A visit to a motor show at the NEC that the car — if that's the word be feeling the thrust in the driver's in Birmingham with his kids — — had to be broken up to return seat. “We're all very excited,” he and their excitement — inspired that jet engine to the MOD. said. the whole project. Turning such a vehicle into scrap A registered charity set up touched a nerve in the Yorkshire alongside the Bloodhound project businessman. produces educational material “I decided I should get involved Spring 2019 Issue • www.bv.world for STEM (Science, Technology, and try and keep the project Engineering and Maths) subjects: together in one ownership,” he model-car building and racing, 3D said. With his team, he took a printing, programming, design long, hard look at the financial Business Vision and practical experiments. There state of the speed bid. is even an experiment to measure He is now sure that it can the speed of sound using an old be funded by sponsorship, pair of headphones, a metre rule and believes the project is Driver Andy Green and a free piece of audio-editing commercially viable. The problem 105 .WORLD If you harness 20 Fiestas — and mug Bezos — we're set to talk about this Bugatti
By HAL WILLIAMS LET'S start with some numbers: four wheels, six exhaust pipes, 16 cylinders, 1,500 horsepower. Enough to be getting on with, yes? These are just some of the vital statistics of Bugatti's La Voiture Noire, the mind-blowing beauty in these pictures, which was unveiled at the recent Geneva Motor Show. The name translates as “The Black Car”, which is a bit of a lame moniker for what is officially, and definitively, the World's Most Expensive Car. So far, anyway. Which brings us to another number, and perhaps the most La Voiture Noire is indeed black important one: the price tag. It's £14.4m, or $19m / €16.8m, if unnamed buyer, but it wasn't me, of. Automobiles Ettore Bugatti currency makes any difference at if that helps to narrow it down. was founded in 1909 by Italian- these altitudes. La Voiture Noire The previous record price was the born industrial designer Ettore is indeed black (well, carbon-fibre £13m someone lashed out for a Bugatti in the-then German, colour), and that “La” in the name Rolls-Royce Sweptail (I didn't buy now-French, city of Molsheim, is definitive and specific: there is that one, either). Alsace. Cosmopolitan, rather than only one. It's The Black Car. Apparently, the Bugatti's French, then. But hey; the name's Considering the price tag, owner lives in France and is “an French. cynics might have thought that enthusiast” of the marque, which Must do a ton, surely? No one alone would be more than is certainly not putting too fine a official word, thus far, on how fast the market could bear, but point on it. France is a fitting home the Bugatti goes. Performance — predictably, perhaps — it for the black beauty, as it is also is expected to be about the has already been sold. To an the home of Bugatti. Well, sort- same lunatic level of one of its stablemates, the Chiron, which roars, scorches and tyre-shreds its way to 60 mph in less than three seconds — and will keep accelerating until the speedo needle passes the 260 mph notch and starts to bend. The BBC handily calculated the Black one's power output as equal to 20 Ford Fiestas, which is kind of hard to imagine, and somehow a little sad. Just using the words “Ford Fiesta” in this article feels wrong. Let's just say that La Voiture Noire has sufficient supercar muscle for a vehicle built to celebrate the 110th anniversary of a notoriously sporty marque. How do those 16 cylinders go into six tailpipes? 106 While I was chewing over The Bugatti Chiron: available in any colour you like the impressive numbers, along with a mouthful of sour grapes, I did wonder about servicing and insurance. Cover for third-party, fire and theft would probably be up there with Powerball wins, but fully-comp would be the go here. Talking maintenance, would Halfords or Kwik-Fit (or Midas; it lives in France, remember) stock spare oil filters and sparkplugs? I also couldn't help but wonder about those six exhaust pipes. How does six go into 16, or rather, how do those 16 cylinders go into six tailpipes? I want to have a look at the manifold, or a The one-off, bespoke Rolls-Royce Sweptail maths textbook. Spring 2019 Issue • www.bv.world Business Vision
107 .WORLD ‘Responsible aunty' tech to take the fun excess speed out of spirited driving
BY HAL WILLIAMS won't help you here. Even if LICENCE hanging by a thread Blighty has cut itself adrift from after being nabbed enjoying that New limiters Europe by the time the rules high-speed blast on an empty come into effect, the UK's Vehicle B-road? Can't find enough clear will be a Certification Agency says they will road to stretch your Ferrari's legs? apply here too. Fear not. These niggling mandatory Speed limiters will be a speed-related issues are soon to mandatory fitment to cars from be washed away by legislation and fitment 2022, along with automated technology — but not in a way emergency braking, electronic most drivers will appreciate. data recorders and “improved All new cars sold in the UK spokesperson told us. “It just visibility” to allow drivers to see and Europe from 2022 will be doesn't. I can't comment on cyclists and pedestrians. In terms fitted with devices to automatically that.” This is music to the ears of the old horse-to-water adage, prevent drivers from breaking of those of us in the two-wheeled it's hard to see how improved the speed limit. BV contacted community, but let us lament in visibility will encourage people to the UK Department of Transport sympathy with our four-wheeled use their powers of observation, to question the wording of the brothers and sisters. but hey: let's have bigger windows proposed legislation: “cars” are The sweeping — some would and rear-view cameras. They can't mentioned; motorcycles are not. say draconian — changes have do any harm. “(The legislation) doesn't been provisionally agreed by the The fun-killing / life-saving apply to motorcycles,” a DoT EU; and sorry, Leavers, Brexit speed-limiting device goes by
This EU initiative will also apply in the UK, even after Brexit 108 Your GPS can already tell you what the speed limit is — ISA will enforce it the jaunty acronym of ISA, for dead Fast And Furious franchises on speed limit-free German Intelligent Speed Assistance. I'd and derivatives. autobahns? And what if your like to propose NITWITS (Nutty Automobile Association brand spanker 2022-year, Initiative That We Intend To president Edmund King has speed-limited car is somehow Shun) as an alternative, though been quoted as saying (nice one, sandwiched between a couple of prohibition by any other name Edmund) that it is “not clear that speeding, unlimited AMG Mercs would smell as foul. ISAs will improve safety”. But from, say, back in pre-limit 2020? Anyway, ISA will use GPS he likes the idea of “mandatory How do you get out of the way? readings and road sign- automated emergency braking”. Other measures agreed-to by recognition cameras to detect Let's just hope it doesn't automate the EU include the mandatory speed limits and sound a warning mandatorily on the car you're fitment of data recorders and lane- — then autonomously slow the following at motorway speeds, or departure warning systems, to stop vehicle. In a rather sloppy sop to that the brake lights come on, at you veering off-lane, or find out real world situations, drivers will least. (post-crash) why you did. What is be able to override the device by Safety campaigners are immediately clear is that drivers pushing the pedal to the metal “in welcoming the speed-limiting will soon have less autonomy and certain situations”. The “certain move as a “leap forward”, and will be hamstrung, for better or situations” suggested so far are already spouting stats to back worse, by technological “driving limited to overtaking manoeuvres. their words. The road safety aids” that are beyond their I'd like to bring Hollywood charity Brake hails the move control. in at this point. What if you're as a “landmark” development. The glimmer of hope for racing across a city to disarm a Antonio Avenoso, executive those who enjoy a spirited Spring 2019 Issue • www.bv.world nuclear device that terrorists are director of the European drive on occasion is that the about to detonate? How about Transport Safety Council, said measures must be ratified by the if you're being chased by armed the measures will prevent “25,000 European parliament before and homicidal maniacs, firing deaths within 15 years of coming implementation. Oh, and that Business Vision machine guns from the windows into force”. It is unclear what bikers are exempt from these of their blacked-out SUVs? Or any metrics Avenoso used to make fumbling attempts at control. Yay. of the situations that regularly that calculation. For now, anyway. lead to car chases, outside of those To play devil's advocate for Driverless cars? Bring ‘em on. that count as a “plot” in brain- a while longer, what happens Things can't get much worse… 109 .WORLD Beemer and Daimler join forces for driverless options, ride-hailing and pay-per-use
LUXURY German vehicle five elements. Reach Now manufacturers BMW and Daimler (a smartphone-based route have announced they will join Bad news for management and booking forces to invest in next-generation service), Charge Now (electric services, including driverless old-school car-charging), Free Now (ride- vehicles. hailing), Park Now (parking The firms are have pledged motoring services) and Share Now (car- to invest €1bn (£880m) in the sharing). Online sources report project looking at pay-per-use car enthusiasts that Daimler's Car2Go car- schemes, ride-hailing and parking sharing brand will join with services. BMW's DriveNow, ParkNow and Ride-hailing firms are traditional motor industry. ChargeNow initiatives, with an expanding, with Uber, in The development may be even 50-50 split in the projects. particular, noticeable in the US seen as bad news for old-school BMW says five services will market. This is seen by industry motoring enthusiasts who still like form a “single mobility service experts as part of the reason to hold a steering wheel, but it portfolio with an all-electric, for the new venture. But BMW could be good news for tech start- self-driving fleet of vehicles that and Daimler have also been ups: the new partners are keen charge and park autonomously”. working on the development to snap up suitable tech firms as A company spokesman of autonomous — driverless — the first part of the co-operative described the move as “the perfect cars. Tech, in the 21st Century, process. way to maximise our chances in a is becoming bigger than the The joint venture has growing market”.
BMW described the move as ‘the perfect way to maximise our chances in a growing market‘ 110 Successful traders don't follow the pack, they time their trades perfectly and possess strong trading psychology.
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