Executive Council

As part of our ongoing efforts to touch base with the community and understand issues that need to be communicated to SMEs in this region and vice versa, we have set up the SME Advisor Executive Council. This think tank pulls together key executives from different industry sectors each time

When: 11^th February 2009

Where: ZUMA Dubai, Dubai International Financial Centre, Gate Village, Building 6

Aeyad Esam Sabagh, Sr. Manager, Business Development, Etisalat

Ahmed El Sherbini, Marketing Communication Specialist ? Team Leader, CBS Marketing Department, Canon Middle East

Alaa AlShimy, General Manager, HP ProCurve Middle East

Husni Khuffash, Country Business Manager, Google UAE

Nicholas van Santen, Marketing Manager, CBS Marketing Department, Canon Middle East

Zaid Abunuwar, SMS&P Director, Microsoft Gulf

The agenda was straightforward – we had to talk. So we took our busy executives out of their regular office setting and into a neutral environment. Over lunch, hosted by ZUMA Dubai, we posed some of the questions sent in by our SME readers. The instructions were simple – vendor hats off, for the most part of the discussion.

It was interesting to observe how traditional competitors warmed up to each other. We had no need for our ready reprimand: “Boys, behave!? No claws were sharpened, no verbal missiles launched. Even Google’s Husni Khuffash, featured in our Feb cover story, did nothing more than excitedly point out the article to a very sporting Zaid Abunuwar from Microsoft. It was all just so very pleasant! We think the world needs more such lunches.

No doubt the downturn is having an effect. We already see that a few industries have suffered. So we are trying to help our clients by offering innovative solutions that help them move away from a capex-intensive investment programme to, maybe, an opex model, by taking up things like managed servicing and smart-sourcing, as opposed to just outsourcing.

Husni Khuffash, Country Business Manager, Google UAE:Yes, the market has definitely been affected. The first budgets to be cut are usually IT or marketing. But while that affects some, it helps us because businesses face increasing pressure to be smarter about their advertising spend. You can’t continue with the legacy of multiple TV spots or 50 metre billboards for a campaign. The game is changing today and smart marketers are asking about their return on investment. We see an increase in our business as more and more people move online.

Consumers have also started to research more before they purchase anything. They want to save money or, if they invest, they want to be sure it’s in the right thing. So the search side of our business has also increased.

Zaid Abunuwar, SMS&P Director, Microsoft Gulf: Do we see an impact on the market? Yes we do. We are trying to help the market by facilitating additional credit or extended credit terms for some of our partners. The opportunity we see because there is always a bright side to things – is that many businesses are investing now in unified communication because they want to save on travel costs and opt for our solutions for video or audio conferencing.

A lot of people are consolidating their servers through virtualisation. So, like with any crisis, if people want to save money, software is one of the solutions. That is helping, but in terms of the broad economic picture, while we still see healthy growth, things are not the same as before.

Alaa AlShimy, General Manager, HP ProCurve Middle East: If you look at verticals I’d say there is a big impact on the financial and real estate sectors; from the horizontal perspective, the impact on the enterprise segment is less than that on the SMEsegment. But in every change there is a threat and opportunity, and I think it’s about how confident and prepared are you to leverage this.

Looking at our core expertise, our customers want much more value for money, so if you can provide this ROI in any segment, it’s the only way you can grow. Speaking of ProCurve, we are growing year on year. The reason is, we are focussed more on markets with the least impact, such as Saudi Arabia, Qatar, Abu Dhabi and so on. We are also focussing on the value we provide as well as segments that have been less affected by the downturn.

Nicholas: I think it pretty much depends on the kind of business you are in and the IT needs associated with that, so you could opt for products aimed specifically at your market. Nowadays a lot of enterprise-level solutions are available at a reasonable cost to SMBs.

Husni: Let?s be clear about something ? yes it?s a tough time for everyone but business has to go on. Maybe we will be more cautious, but we can?t stop activities that drive business. I don?t have a crystal ball to show the future, but I will still eat my meals, cut my hair, or buy a new car if my car is totalled. The difference is that while earlier I might take a week to decide what to buy, now I?ll take a month to weigh my options. But life goes on and so does business. If SMBs don?t grow now, they will miss out on a big opportunity. It?s like you buy when everyone is selling and sell when everyone is buying. So you should continue investing but seek smart ROI.

Aeyad: I?ll answer that from a service provider?s point of view. I think SMBs have an ideal opportunity now to trust their partners. As an ICT solutions provider we?ll be able to take some of the current risk away. Things like hosted exchange that we partnered with Microsoft to deliver, or the mobilisation of the workforce by using BlackBerry services, are all instances where they don?t have to invest in capex; they are low risk, on-going, pay-as-you-go type of services.

Aeyad: It’s about getting the right cost optimisation. We don?t see our customers spending any less, they just spend it more efficiently with us for the right services to suit the situation.

In terms of our business ? in a downturn people talk more, not less, whether it?s to discuss the current situation or, from a corporate perspective, travel less and use collaboration tools instead, such as telepresence and unified communication.

Zaid: There are a couple of things I would like to mention. One is that a lot of people are still in denial. This is not going to impact me. I think one of the most dangerous things business leaders can do is not acknowledge that this will change the way business is done. As long as we are in denial, we will not do what really needs to be done, and the delay will prove to be very costly.

Secondly, we need to prioritise. I agree people can?t do things the way they did before. And third, look at the short term and also the long term. Look at how you can invest, because what’s important in a crisis is how you come out of it. So when it’s over, how are you positioned? Did you invest in your CRM at the right time? Did you invest in your infrastructure, your people, and so on?

In the short term there are a lot of tactical ways in which businesses can cut costs. Like I said, move from travel to using the unified communication infrastructure. And also negotiate. There are a lot of good deals out there! For instance we are promoting a subscription option that we never really promoted in the past.

But the most important thing is, look at what is strategic and invest in it, because that?s going to make a difference to how you come out of this crisis versus how you got into it.

We don?t think this is going to be a dip in the economy and then it?s going to come back. According to experts the whole financial system in the world is reforming and it is settling at a new level. The point is, where do you go from here and how do you grow? I don’t think it would be wise to compare yourself to before the crisis and ask when do I recover. It’s like the dotcom boom and bust. A new order has been established, and you have to make the most of the situation. I don’t think the earlier growth rate is realistic anymore.

Nicholas: With the vendor hat back on, we are very firmly entrenched in both the consumer and business segments. A lot of our efforts at the moment are going into how we can align ourselves with the market to facilitate this crossover.

I came recently from Europe, where we had 700 people in our office. The IT policies mandated things like no skype or iTunes. But SMBs are perfectly placed to strike a good balance and be far more flexible on these issues than larger organisations like us.

Aeyad: Basically, the boundaries are blurring between a consumer and a business user. I?m a business user on my BlackBerry at work, but then become a consumer at home when I access my personal e-mail from my device. Regarding IT policies to safeguard business, my advice to SMEs is to let that pain be taken away by an external service provider who might implement the solutions for you in the cloud, rather than by an IT department that may or may not exist in your company.

Zaid: I agree; the wall between individual productivity and corporate productivity is breaking down. I’ve got my phone, e-mail, calendar and contacts synched. So you have a choice – you either embrace the devices and work style of your employees, or you run into greater risks. An employee might work on a personal device from home and unknowingly upload a virus into your organisation, if it is not protected with firewalls. Alternatively, you can make sure you adapt to, encourage and protect your employees’ devices.

We have a policy where we pay for a 2 MB ADSL subscription for all our employees because we want to encourage them to work from home and be more productive. The number one thing for employee satisfaction is work-life balance. If you actually encourage work from home, you eliminate half the problems. We let our employees know it?s okay to work from home. We trust you for what you deliver, not for showing up from 9 to 6.

We sponsor Windows mobile phones for our employees, and these comply with corporate security guidelines, so their data is protected even if they lose the phone. The point is, we are embracing the individual devices and work styles so we can leverage them to our advantage, and that is something SMBs should also think about.

Good things don?t always need to be costly. You can utilise an affordable or free service. For instance MSN messenger and Google Search are great tools that are free to use. Where you stand once the dust settles will be determined by how you use all the opportunities available to you today.

Ahmed It depends on your requirements; your type of business or size makes a big difference to your essential needs.

Aeyad: What are your core competencies and what is it that you?re trying to do? That, then, will be the absolute determining factor. Your wish list in tough times, such as now, needs to be focussed.

Then there is software you need to connect with your customers. So if you’re in a customer business and you don’t have a CRM solution – that is not an option. The same goes for Web presence or software that facilitates people to communicate and exchange ideas. These are must-haves.

Aeyad: And building on that, it’s also about your brand. A Web presence is an important tool that companies should be utilising. Sometimes I get a business card with a Hotmail or Gmail address and, no offence, but it makes me wonder what kind of company I am dealing with if they don’t have a business domain.

Alaa: In the current situation we need to analyse our business and look at what is going to bring immediate as well as long-term returns, and we need to balance and prioritise accordingly.