WISeKey Trailblazers 2011 World Economic Forum

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WISeKey Trailblazers 2011 World Economic Forum

  1. 1. The information contained in this booklet is based onfirst-hand interviews with chief executive officers ofGlobal Growth Companies.The views expressed in this publication do notnecessarily reflect those of the World Economic Forum.World Economic Forum Headquarters91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandTel.: +41 (0)22 869 1212Fax: +41 (0)22 786 2744World Economic Forum Beijing Representative Office501-502,West TowerWorld Financial CentreNo.1 East 3rd Ring Middle roadChaoyang District,100020BeijingPeople’s Republic of ChinaTel.: +86 10 6599 9500Fax: +86 10 6599 9501/02World Economic Forum Japan OfficeRoppongi Hills Mori Tower 49F6-10-1, Roppongi, Minato-kuTokyo 106-6149JapanTel.: +81 (0)3 5771 0067Fax: +81 (0)3 5771 0068World Economic Forum USA3 East 54th Street, 17th FloorNew York, NY 10022USATel.: +1 212 703 2300Fax: +1 212 703 2399E-mail: ggc@weforum.orghttp://www.weforum.org/ggc
  2. 2. Contents1. Introduction and Background ..............................................................................................12. Index of Portrayed Global Growth Companies ...................................................................23. Global Growth Company Success Stories Accretive Health ......................................................................................................................4 Banco Compartamos ..............................................................................................................6 Beijing Redbaby Info-Tech.......................................................................................................8 Better Place ..........................................................................................................................10 Celulosa Argentina ................................................................................................................12 du .........................................................................................................................................14 IDEO .....................................................................................................................................16 illycaffè ..................................................................................................................................18 Indika Energy ........................................................................................................................20 Karuturi Global ......................................................................................................................22 Kokusai Kogyo Group ...........................................................................................................24 KPIT Cummins Infosystems ..................................................................................................26 LCY Chemical Corp. .............................................................................................................28 Lynas Corporation Limited ....................................................................................................30 MB Holding Company ...........................................................................................................32 M+W Group ..........................................................................................................................34 ReachLocal ...........................................................................................................................36 Serum Institute of India .........................................................................................................38 TAK Agro ..............................................................................................................................40 TOTVS ..................................................................................................................................42 Trina Solar .............................................................................................................................44 Vingroup ...............................................................................................................................46 WISeKey ...............................................................................................................................48 Yida Group Co.Ltd ................................................................................................................504. Global Growth Company Partners and Industry Shapers ................................................535. Annexes Global Growth Company Community Agenda .......................................................................54 Executive Summary – Redefining the Future of Growth: The New Sustainability Champions........55 Acknowledgements ..............................................................................................................57 Photo Credits ........................................................................................................................58
  3. 3. Introduction and BackgroundThis year marks the fifth anniversary of the founding of the World Economic Forum’sCommunity of Global Growth Companies (GGCs). During the past five years, we havewitnessed the emergence of a new generation of economic leaders.Recognizing their importance, the Community engages those players that, in addition toshowing consistently high growth rates, act as disruptors of traditional industries throughtheir new technologies and innovative business models. GGC members come from both fastgrowing emerging markets and established economies.As of August 2011, the Community includes more than 310 members from 70 countries andvarious regions. Membership is by invitation only, reviewed by a committee that applies strictselection criteria, and limited to 50 new companies globally each year. Eligible companiesgenerally have a turnover between US$ 100 million and US$ 5 billion, and consistent annualgrowth rates exceeding industry and regional averages. Importantly, GGC members arebuilding a global business beyond their traditional markets and are committed to having apositive effect on the economies and societies in which they operate.To illustrate the diversity, richness and best practices of the Community, we are delighted toshare the profiles of 24 Community members in the second edition of Trailblazers, Shapers andInnovators.The World Economic Forum is proud of the Global Growth Company Community. We areconfident that these new champions will fully leverage the platform that the Forum provides tothem, and that they will make a strong commitment to our mission to improve the state of theworld.Jeremy Jurgens Jerry YuSenior Director DirectorCentre for Business Engagement Centre for Global Growth Companies
  4. 4. Index of Portrayed Global Growth Companies M+W Group (p34) Stuttgart Infrastructure & Urban Development IDEO (p16) Palo Alto Accretive Health (p4) Professional Services Chicago Healthcare (Consulting/Market Research)Better Place (p10)Palo AltoAutomotive WISeKey (p48) Banco Compartamos (p6) Geneva Mexico City Information Technology Banking (Microcredit)ReachLocal (p36)Woodland HillsMedia, Entertainment & Information TAK Agro (p40) Lagos Agriculture, Food & Beverage TOTVS (p42) São Paulo Information Technology Celulosa Argentina (p12) Buenos Aires Pulp and Paper
  5. 5. Beijing Redbaby Info-Tech (p8) Beijing Retail and Consumer Goods illycaffè (p18) Yida Group Co. Ltd (p50) Trieste Dalian Agriculture, Food & Beverage Trina Solar (p44) Infrastructure & Urban Development Changzhou Energy (Photovoltaic modules) (Real Estate) KPIT Cummins Infosystems (p26)du (p14) PuneDubai Information Technology (Automotive)Telecommunications Kokusai Kogyo Group (KKG) (p24) Tokyo Infrastructure & Urban Development MB Holding Company (p32) Muttrah Energy (Oil) LCY Chemical Corp. (p28) Vingroup (p46) Taipei Hanoi Chemicals (Fertilizers) Serum Institute of India (p38) Infrastructure & Urban Development Pune Healthcare Karuturi Global (p22) Indika Energy (p20) Bangalore Jakarta Agriculture, Food & Beverage Energy Lynas Corporation Limited (p30) Sydney Mining & Metals (Rare Earths)
  6. 6. Global Growth Company Success Stories Accretive Health Healing Healthcare A cross the US, up to 90% of As a result, many hospitals and primary care hospitals collect only 85% of their centres are haemorrhaging double-digit due. Insurance claims revenue. are often delayed, denied, lost or overlooked. As Instead of Since 2003, Chicago-based for emergency room services, addressing only Accretive Health has been in the vast majority of cases, “attacking this very significant partial solutions hospitals are mandated by hospital revenue leakage”, in the law to carry the treatment of or focusing wholly words of Etienne Deffarges, the the uninsured, often at their on cost reductions, company’s Vice-Chairman, and a own expense. While hospital Accretive Health member of the company’s founding executives have their hands full focuses on the entire management team. The company’s focusing on clinical care and focus is to bridge and patch the quality, front-end administrators revenue cycle of its losses and inefficiencies rampant are often inadequately armed customers. across the healthcare field. A built- to grapple with, much less for-purpose company, Accretive entirely understand, one of the most arcane, Health brings its industry-changing expertise complex payment systems administered by and unmatched technology to everything any industry. from insurance and benefits verification, to medical treatment documentation and coding, authorizations and referrals, and bill preparation and collections. The result: significant, sustainable improvements in medical quality and hospital operating margins, not to mention increased patient satisfaction. Instead of addressing only partial solutions or focusing wholly on cost reductions, Accretive Health focuses on the entire revenue cycle of its customers – typically multi- hospital systems, including faith- based or community healthcare systems, academic medical centres, independent ambulatory clinics, and physician practice groups. Through its innovative technology and process excellence, the company assumes responsibility for the management and4 I World Economic Forum I Global Growth Companies
  7. 7. cost of a customer’s revenue cycle operations. too. Thanks to the recent White House allocationIt supplements the client’s existing staff with of US$ 16 billion to switch the US over toseasoned Accretive Health personnel, technology, digital medical records, medical billing systemssavvy and culture. Not least, it serves as an on- will be compelled to undergo massive annualsite operational partner. upgrades in the future. Many medical executive are concerned about their capacity to cope withAmong Accretive Health’s most recent initiatives these new regulations – and will happily outsourceis a pioneering alliance with Minnesota-based this function if it means +4-6% annually to theirFairview Health Services, which cash collections and improved results.owns seven Midwestern hospitalsand 42 primary care clinics. This "For every Deffarges credits the company’spartnership focuses on reducing 100 patients who highly productive partnership withtotal cost of care while improving the Global Growth Companiesmedical outcomes, with thus- show up to be Community “with helping us explorefar promising early results. The admitted at a future markets, and gain a greatercompany is also expanding its hospital we serve, understanding and connection inreach by promoting its offerings we will find 85 certain markets, such as India, whereinternationally. we already operate.” Accretive Heath paying solutions Chief Executive Officer Mary TolanAccretive Care does a lot of things through a variety of recently addressed the prestigiousin a unique way. Example: It may funds." World Health Congress, and, givenstep up to find coverage solutions her past participation in Davos, will nofor the uninsured. It may uncover ways to doubt be a valuable contributor to future Worldincrease the yield on a co-payment. It may ensure Economic Forum events.that no process breakdowns lead to an insurancecompany denial – Did the hospital get the right Over the past five years, the publicly traded Accretiveauthorization and/or the proper referral? Was X Health, which reported 2010 revenue of US$ 610or Y truly a medical necessity? Accretive Health million, has had a compounded annual growth rate ofhelps health providers recover lost or delayed 45%. Since 2005, the company has also increasedrevenue, but it also helps countless patients pay revenues by +359%. Currently holding only 1% offor healthcare they otherwise could not afford. US market share, Accretive’s high-level growth isSays Deffarges: “For every 100 patients who highly sustainable. From the perspectiveshow up to be admitted at a hospital we serve, of the health industry, Accretive Healthwe will find 85 paying solutions through a variety is a niche market with limitless potentialof funds – whether it’s through federal money, that will continue to shapestate money, private foundations or specialized the health revenue cycleinterest funds.” landscape in the US and beyond in an innovative,By digging up and navigating health laws and game-changing way.regulations, Accretive Health is fundamentallyreshaping the landscape of revenue cyclemanagement. The healthcare industry is booming, Accretive Health Industry Sector: Healthcare Location: Chicago, USA www.accretivehealth.com Mary A. Tolan Founder and Chief Executive Officer Global Growth Companies I World Economic Forum I 5
  8. 8. Global Growth Company Success Stories Banco Compartamos Lending a Hand A cross Mexico, the beneficiaries range “The financial sector from a small Oaxacan retailer to a in Mexico has been very Tlaxcala-based glazier and a Coahuila successful attending to the native who used her microloan to pay needs of the middle-class and up,” off her electricity bill and put down a payment on says Executive Vice-President Carlos Danel, a half-dozen computers needed to start her own “but it has historically not seen the base of the small coffee shop. pyramid as potential clients.” One of Banco Compartamos’ competitive advantages? Talking These three individuals were among the to potential clients in the streets and in the beneficiaries of the 2011 Banco Compartamos mercados about their goals and dreams – then microentrepreneur awards, given to women figuring out the best ways to serve their financial who demonstrate outstanding entrepreneurial needs. spirit. Over the past two decades, thanks to Banco Compartamos’ microfinance programme Founded in 1990 as a not-for-profit NGO and that advances loans of roughly 1,000 pesos supported by aid from international donors, the apiece to local citizen within the country’s bank recognized early on that the accelerated lowest economic brackets, Mexico City-based population growth across Mexico and Latin Banco Compartamos has become one of Latin America had surpassed available jobs. Then America’s largest, most successful institutions. and now, its goal is to bring financial services to6 I World Economic Forum I Global Growth Companies
  9. 9. the largest number of people in the shortest amount from Mexico, the United States, Europe and Southof time, in particular to rural, underserved female America. More to the point, Banco Compartamos’entrepreneurs who historically lack access to working historic IPO is the culmination of an ongoing strategycapital loans. The bank realized early on that the within microfinance to bring in the private sector, andhighest form of collateral in socially cohesive Mexico relays the message that social service and profits canwas, and still is, a person’s reputation. exist side by side.Example: Under the bank’s “Becoming a publicly traded company is not“Credito Mujer” programme, Banco the road for every microfinance organization,”Banco Compartamos extends says Danel, adding that post-IPO, Banco Compartamos’loans from 1,500 to 27,000 pesos Compartamos has tripled in size and is ableto each member of a group of comparative to serve many more millions of underservedanywhere from 10-50 women, all advantage? Taking households. “But it does make sense forof whom are granted life insurance to potential clients some markets and institutions.”at no additional cost. The group in the streets andthen guarantees the bank that Today, Banco Compartamos boasts athey will repay the loan, even in the mercados portfolio of US$ 11,621 million pesosif one of its members defaults. about their goals that it lends to more than 2 million clientsOnce clients have paid off the first and dreams – then spread across commerce, building,loan, they qualify for additional figuring out the best services, agriculture, livestock farming andloans. These microloans permit manufacturing – a figure that dwarfs non- ways to serve theirlow-income Mexicans to develop profit microfinance organizations in Latinproductive activities that help them financial needs. America. The bank boasts 391 servicepay off their bills, improve their offices located in 32 Mexican states,living environments, or buy raw materials en route to employs more than 12,000 people. And for the pastcreating their own “microenterprises”. seven years, it has provided its investors with an average annual return on equity of roughly 47%.In 2000, Banco Compartamos morphed into a“SOFOL”, rendering the bank eligible for bank Founder José Ignacio Avalos Hernández coined theloans, debt placements and development bank bank’s name, Compartamos, which means “Let’sfunding. In 2006, Mexican authorities gave Banco Share”. As the bank expands its operations to otherCompartamos its bank license. And a year later, regions of Latin America, in particular Peru andBanco Compartamos did something that transformed Guatemala, this philosophy can only bring the bankit into an industry to watch. By launching a 2007 IPO, and its customers additional dividends. Not least,the bank effectively became an intermediary financial this Latin American bellwether is showing the rest ofagent between large investors and the lower income the industry what the possible future of microfinancesegments. Banco Compartamos’ IPO caused some holds.controversy within the industry about the spiritand meaning of microfinance, yet no one coulddispute the total proceeds of US$ 468 million, withpurchases by 5,920 institutional and retail investors Banco Compartamos Industry Sector: Banking (Microcredit) Location: Mexico City, Mexico www.compartamos.com Carlos Labarthe Costas Fernando Alvarez Toca Executive President Chief Executive Officer Global Growth Companies I World Economic Forum I 7
  10. 10. Global Growth Company Success Stories Beijing Redbaby Info-Tech Family Affair W hen pondering Beijing-based selling, among other things, baby food, furniture, Redbaby Info-Tech, one can’t help nursing equipment and maternity clothing (China but think of Amazon.com. The is the second-largest market for child-friendly original Web-based bookseller products after the US). Today, with its dedicated continues its restless evolution and today sells call centre, community sites, special channels, consumers around the world everything from multiple platforms, distribution branches across shoes to grilling equipment and iPod speakers eight Chinese provinces, and focus on customer to power tools. Could Redbaby follow in its experience, Redbaby is a multi-channel retailer footsteps? catering to the needs of the entire family, offering roughly 6 million Chinese consumers convenient A leading catalogue and online retailing shopping services 24/7. company, and China’s largest multi-channel direct sales retailer, Redbaby is clearly poised Led by Chief Executive Officer Xu Peixin, the for continuing growth and success. Founded company broke even in its first year of funding, in 2004, the company began its life as a B2C with 2007 revenue of US$ 86 million, and since baby and maternal care product company 2004 has grown annually by 300%. Named8 I World Economic Forum I Global Growth Companies
  11. 11. the number one e-commerce website of the top the first female integrated shopping website in China..100 most valuable companies worth investing in, With its combined revenues of RMB 1.5 billion fromits shareholders include Northern its online and catalogue sales businessesNight Venture Capital, New Enterprise in 2010 (with maternal care and childcareAssociates and KPCB China. Redbaby "Performance is products accounting for RMB 960 million,understands that among the keys to not a competitive and non-maternal and childcare productsits success is the fruitful relationship accounting for RMB 540 million), experts enterprise. The keybetween the customer and the predict that the company’s new onlinecompany. “Performance is not a is the customer, good shopping platform, Binggo.com, will passcompetitive enterprise,” Xu Peixin has customer service, its target of RMB 1 billion this year, whilebeen quoted as saying. “The key is good customer revenues from other businesses maintainthe customer, good customer service, experiences and, parity with those of last year. Accordinggood customer experiences and, to plans that the company revealed inultimately, trust.” ultimately, trust." 2010, Redbaby will make its website the core of its business while maintaining aIn addition to its various shopping websites, the dual catalogue/online business model.company has opened a dozen branches covering16 provinces and cities to handle, on average, “We are very honoured to become a member ofthe 30,000 orders for 60,000 products that run the Global Growth Company Community,” saysthrough its system every day. Other B2C companies, Xu Peixin. “As the demand for the entire marketincluding Dangdang, and even Amazon in China, continues to expand, we expect our own growth tooutsource their logistics services. But by establishing continue, along with the continuous innovation weits own logistics team, Redbaby has lowered costs have seen during the past seven years of industryand improved its delivery systems, easily outpacing leadership.”the competition.Today, with operations in Beijing, Tianjin, Shanghai,Shenyang, Nanjing, Wuhan, Dalian, Hangzhou andhalf a dozen other cities and towns, Redbaby’sgrowth is poised to continue alongside China’s rapiddevelopment, especially after the company launching Beijing Redbaby Info-Tech Industry Sector: Retail and Consumer Goods Location: Beijing, People’s Republic of China www.redbaby.com.cn Xu Peixin Chief Executive Officer Global Growth Companies I World Economic Forum I 9
  12. 12. Global Growth Company Success Stories Better Place Electric Dreams P erhaps no company extant has more goal? To reduce worldwide reliance on oil with direct links to the World Economic a market-based model and infrastructure that Forum than Better could potentially spur widespread Place, founded in Palo adoption of a new breed of electric Alto, California. Founder and Chief Thanks to Better vehicles. Executive Officer Shai Agassi has Six years after he first mulled said that his company’s name Place, consumers over Schwab’s challenge, was inspired by a question Klaus have the same Agassi’s Better Place is on track Schwab posed in Davos in 2005: freedom driving to becoming the first scalable, “How do you make the world a electric cars as they sustainable personal transportation better place by 2020?” system designed for the mass enjoy today with market, well beyond early adopters Agassi took Schwab’s dictum their gas-powered or “greenies.” not as a hypothesis, but as a vehicles. thoughtful call to arms. After all, Why electric cars, and why then as now, gas-powered vehicles continue to now? The reasons range from economic and play a critical part in the high levels of carbon technological to environmental and health-related emissions across the developed world, by as (with a dash of geopolitics thrown in), according much as 50% in some European countries. This to John Proctor, Better Place’s Director, Global is why former SAP-executive Agassi came up Communications, who points out: “With with a plan to create a complete solution for Better Place, consumers gain affordability and electric transportation. Better Place’s audacious convenience.” After all, if they don’t, they won’t opt for electric at the scale needed for significant impact on oil dependence. Thanks to Better Place, consumers have the same freedom driving electric cars as they enjoy today with their gas-powered vehicles. Embedded software in their cars’ dashboards lets them know how much energy remains in the battery and, if needed, guides them to physical charge10 I World Economic Forum I Global Growth Companies
  13. 13. spots and battery switch stations across a country Place announced a strategic agreement with Chinaor region. Replacing a nearly drained battery at Southern Power Grid Company, the world’s eighthan automated switch station takes less time than largest utility, to further advance electric cars withreplenishing a car with gas at a fuel pump. Home- switchable batteries across China. The new alliance isand workplace-based charge spots enable drivers rolling out a battery switch station and joint educationto top off their batteries easily and centre in Guangzhou by the end of 2011.regularly. And thanks to advances inthe batteries, and the stable cost of Replacing a nearly John Proctor notes that Better Placeelectricity relative to oil prices, the per- has created an ecosystem that extends drained batterykilometre cost of transportation in an far beyond a carmaker like Renault toEV sedan is significantly lower than at an automated achieve its mission. The company’s rangethat of a gas-powered one, even after switch station of alliances includes a fleet of owners inconsumers factor in the amortized takes less time than Israel, as well as the leading operatorscost of the battery. replenishing a car of gas stations, Danish state railways, global powerhouses like GE, automotiveBut it’s not just consumers who with gas at a fuel clubs, HSBC and other financial backers,would win big if electric vehicles with pump. and (in the largest deal of its kind) answitchable batteries gain widespread electric utility in Australia that will powertraction. EVs offer governments the opportunity the company’s network with 100% renewable energy.for energy independence and environmental More automobile manufacturers are expected tosustainability. A collective movement towards sign on, too. Not least, governments and the publicelectric-powered transport keeps funds otherwise sector can begin establishing a sustainable directionspent to import oil within a nation’s borders, opens – and example – for future generations.up new opportunities to use surfeits of electricity thatotherwise go to waste at off-peak times, and creates By the end of 2011, Renault will begin rolling out thenew markets for renewable energy from wind, solar, first of 100,000 switchable-battery vehicles alreadygeothermal and tidal sources. Moreover, the charge committed for Israel and Denmark, with Australia tospots, battery switch stations, grid technologies follow in 2012. And CEO Agassi is proof positive thatand other infrastructure engender new (and hard- one person can be charged to help make the world ato-outsource) jobs in construction, engineering and better, cleaner place. As the CEO himself said once,management. “Sometimes people have to remind youIn 2008, Israel became the first country and Renault to aim high.”the first carmaker to embrace the Better Place modelof building a network to enable the mass adoptionof electric vehicles and offering a clean, competitivealternative to gas-powered cars. Denmark andAustralia followed suit soon thereafter. This pastApril, alongside officials from Guangzhou, Better Better Place Industry Sector: Automotive Location: Palo Alto, USA www.betterplace.com Shai Agassi Founder and Chief Executive Officer Global Growth Companies I World Economic Forum I 11
  14. 14. Global Growth Company Success Stories Celulosa Argentina Into the Woods T he 2008 International Book “For us, trees are a crop, like growing Fair in Buenos Aires, Argentina, soybeans or corn,” says Chairman had a not-altogether-expected Douglas Albrecht, remarking that patron. The literary world may Argentina is one of the most efficient have been migrating slowly towards places in the world to grow food and Kindles, Nooks and e-books, but the forestry products. Celulosa Argentina’s support of corporate sponsor Celulosa dedication to “sustainability” extends Argentina reminded the publishers, across his business model and practice authors, librarians and to how Albrecht manages book sellers milling around his approximately 2,000 the largest book fair in the "For us, trees employees. “We take Spanish-speaking world are like crop, like our carbon footprint very that, well, paper matters. seriously.” growing soybeans Those two words might and corn." Celulosa Argentina also well be among the owns and operates dictums of Martinez, Argentina-based sawmills, paper mills and plywood mills Celulosa Argentina and its shareholder, across Argentina, Uruguay and Chile – Grupo Tapebicua, a leading player centres that specialize in growing and in that country’s forest industry and processing eucalyptus and pinewood renewable energy sectors. An integrated for the purposes of manufacturing and regional corporation that links solid, distributing high-quality plywood, floors, sustainable forest development with decks, tongue-and-groove boards, the manufacturing, marketing and beams and moulding. The company distribution of successful high value- also owns some 21,000 hectares of pine added products, Celulosa Argentina has and eucalyptus forest in the northwest resource and energy investments across Argentine province of Corrientes and in Argentina and Uruguay that include pulp, Uruguay. Every year, Celulosa Argentina paper and forestry products, as well as produces roughly 217,000 tons of pulp bio-diesel and oil and gas exploration. and 205,000 tons of paper, including Committed to the use of renewable packaging paper and coated and non- resources, the company oversees its coated printing, writing and tissue paper forests in accordance with the most (a fast-growing market in which Celulosa stringent environmental guidelines and Argentina plans to expand its presence), international criteria, with a chain of that it then distributes to both domestic custody involving raw material derived and global markets. Not least, its affiliate from forests certified under Forest company, Patagonia Bioenergia, is Stewardship Council standards. one of the world’s largest independent producers of soy biodiesel.12 I World Economic Forum I Global Growth Companies
  15. 15. No less impressive than its holdings is the company’s the Community of Global Growth Companieslongstanding corporate responsibility. As the second (Celulosa Argentina has been a Member sincelargest employer in Argentina’s Corrientes province, 2009), particularly during these volatile economicCelulosa Argentina regularly donates wood for the and political times. In particular, he appreciatesconstruction of rural housing. The company also the knowledge he has gained – and can continueworks jointly with local health centres, conducting imparting – from his South American headquarters.campaigns such as Dengue Prevention and for the “We do have a small but important niche in the globalprevention of other diseases, and is committed to community,” notes Albrecht. “In our wood productsproviding its products to local fire brigades, hospitals business, for example, there is a growing demandand schools. for inputs coming primarily for Asia. Here, Asia talks to SouthCelulosa Argentina’s growth strategy focuses on America without necessarilyvalue-added businesses, including tissue and talking to North America.hygiene products, renewable energy and in food- From the perspectiverelated sectors. Optimally, the company will continue of global growth, I findacquiring forestry assets, thereby reducing its it extremely valuabledependence on third parties for its raw materials, to interact with aincluding fibre and eucalyptus wood. community that can share these issuesAs an Argentina-based businessperson, Chairman together.”Albrecht has found value in interacting with Celulosa Argentina Industry Sector: Pulp and Paper Location: Buenos Aires, Argentina www.celulosaargentina.com.ar Douglas Albrecht Chairman Global Growth Companies I World Economic Forum I 13
  16. 16. Global Growth Company Success Stories du The Ringing Sound of Success T he United Arab Emirates (UAE) has services to individuals, homes and businesses, one of the most modern, sophisticated and carrier services to businesses. It has also telecommunications sectors in the brought to the market new services including world. It’s a fast-growing one, too. its Pay by the Second billing system, Mobile According to the Global Information Technology TV, mobile payments, and du’s “Wow” recharge Report published by the World Economic Forum card, which offers subscribers the choice among in 2009, the UAE is the most wired among Arab “more credit”, “more international” and “more nations, with soaring broadband subscriptions time”. Not least, du brings scalable media accounting for more than half of all Internet technology platforms and telecommunication connections. solutions to the broadcast community through its world-class teleport (Samacon) and Master With over 2,000 employees, a mobile subscriber Control Room (MCR) facilities. base of over 4.7 million customers across the United Arab Emirates and over 20% growth The company continues to innovate and thus far in 2011, du is the second largest expand. In 2009, du and UK giant Vodafone mobile operator in the UAE, as well as the Group signed an exclusive non-equity strategic telecommunications operator of choice for a partnership to help both companies better large majority of new subscribers. serve the needs of their respective customers in the UAE. As a result, du now has exclusive Consumers can buy the company’s products access to Vodafone’s range of products, and services either online or through du’s devices and services in the UAE, and will be retail network, to date including 41 shops able to draw on Vodafone’s experience in supply and over 3000 authorized dealers, including chain management, technology development the company’s Abu Dhabi and Dubai flagship and acquisition of enterprise customers from stores. Among du’s offerings: fixed and mobile multinational companies, as well as improved telephony; broadband connectivity; and IPTV inter-working between networks across the14 I World Economic Forum I Global Growth Companies
  17. 17. 67 countries where Vodafone operates. In return, copying machines. Not least, in a hot, sunny partVodafone’s customers will enjoy extensive coverage of the world, du has implemented its first-ever solaracross the UAE, and du’s state-of-the- power project on Sir Bu Nair Island,art 3G network. In 2008, the company which will provide mobile coveragealso joined with Microsoft to organize Paralleling its for the entire island using zero fossilthe “Imagine Cup” competition for fast growth, du is fuel energy – meaning zero carbonUAE college and university students, a emissions. To improve its environmentalcompetition designed to spark students’ also a champion friendliness, the company plans tocreativity and innovation in developing of the environment implement additional power sites atintelligent mobile apps on the themes dedicated to remote locations.of social networking, lifestyle and reducing technologyenvironment to serve a social cause. Then there’s the Green du initiative, waste across the aimed at improving the eco-friendlinessParalleling its fast growth, du is also UAE. of du’s base transceiver stations. dua champion of the environment. For has contracted with a leading Germanthe company, sustainability can be as elemental company to implement a hybrid power system inas printing double-sided paper to reduce waste; their base transceiver sites. The new systems willestablishing a system-wide eco-friendly e-billing be fully implemented in over 100 sites by the end ofsystem; providing reusable coffee and tea mugs 2011, reducing company-wide fuel consumption byfor employees; or, partnering with Hewlett-Packard more than 50%.to create the Planet Partners Program, dedicatedto reducing technology waste across the UAE by du isn’t just a telecommunications company, but anrecycling the toner cartridges used in printers and industry leader, whether locally or long-distance. du Industry Sector: Telecommunications Location: Dubai, United Arab Emirates www.du.ae Osman Sultan Chief Executive Officer Global Growth Companies I World Economic Forum I 15
  18. 18. Global Growth Company Success Stories IDEO Design for Living “O ne of the fascinating shared Founded in 1991, the Palo Alto, challenges of being a California-based IDEO design firm is an member of the Global Growth industry pioneer whose human-centred, design- Company Community,” says based approach brings sustainable innovation to IDEO Chief Executive Officer Tim Brown, “is the organizations, business, governments, healthcare recognition that, while we may be strong in our providers and social sectors. Whether IDEO is own countries, we are continually learning in working on new products in the medical industry, new, different markets. And, not least, that we or working with healthcare giants like Mayo Clinic also recognize that the era when companies or Kaiser Permanente, or alongside government were internally focused and controlled their own agencies in Singapore and the US, the company brands and services may be coming to an end.” believes that the power of design – and design thinking, which combines technical possibility The first mouse for Apple. The Palm V handheld with sound business strategy around human- device. Crest’s no-squeeze, stand-up toothpaste centred needs – can help create new products, tube. Bank of America’s Keep the Change shape human behaviour, solve problems and account service. Air New Zealand’s redesigned create long-lasting, sustainable solutions. IDEO’s economy class, not to mention the LifePort mission, says Brown, is threefold: to understand Kidney Transporter. Without the industry-shaping what consumers really need; turn that need innovations of design and consultancy firm into a compelling product or experience for the IDEO, the world might still be pressing random, consumer and the company; and then learn crooked buttons, or lugging around a clattering how to create and scale that same product or 50-pound digital calendar in a backpack. experience.16 I World Economic Forum I Global Growth Companies
  19. 19. Whether it’s a retailer who seeks IDEO’s help IDEO is consistently ranked by industry experts asin reaching a new demographic, a smartphone among the top 25 most innovative firms in the world.manufacturer seeking to reinvent the gaming Today, its client list ranges from Hewlett Packard toexperience, a hospital eager to improve the overall AT&T, Vodafone, Samsung and BBVA, with morequality of its patient care, or a government looking than half its overall revenue coming from European,for ways to increase healthy eating Asian and overseas clients.in children, IDEO assembles ateam made up of industry experts "More and more IDEO Chief Executive Officer Brown iswho observe and assess the global companies most excited by the potential of fosteringconsumer experience. Business genuine social innovation by addressing realize thatdesigners, industrial designers, such global issues as poverty, nutrition,engineers, psychologists, social innovation is a health, water and sanitation, economicscientists, marketers and other IDEO practical, scalable, empowerment, access to financial services,multidisciplinary experts partner with sustainable way of and gender equity, in both the private andclients to tackle systemic challenges, doing business – and public sectors. How will medical deviceultimately formulating working companies, insurance companies, financialmodels and working prototypes in a volatile world, service providers and non-profits of theusing the methods and tools of they are making future tackle these concerns?IDEO’s design-thinking approach. innovation a coreThe result: new companies, competency." Brown reserves his greatest excitement forbusiness models, brands, products, the Asian markets, as he considers Asiaservices, spaces and interactive experiences, as well the epicentre of exciting, innovative ideas, industries,as newfound company-wide cultures and internal and markets. Even better, with its new locations insystems and processes that allow for ongoing, Singapore, Tokyo and Mumbai as well as its officesustainable innovation. in Shanghai, IDEO as poised for continuing success and growth. Says Brown: “More and more globalBy inspiring some of the biggest companies in the companies realize that innovation is a practical,world to transform their organizations by focusing scalable, sustainable way of doing business – andon consumers, IDEO has become far more than a in a volatile world, they are making innovation a coredesign company. Today, along with design firms, it competency.”competes with management consulting companiessuch as McKinsey, The Boston Consulting Group In hindsight, you might say that industry-shaper IDEOand Bain. IDEO invites its clients into the innovation led the way.process by encouraging them to identify consumerneeds, use collaboration as a means to generategrowth, and bring new ideas to market. IDEO Industry Sector: Professional Services (Consulting/Market Research) Location: Palo Alto, USA www.ideo.com Tim Brown Chief Executive Officer Global Growth Companies I World Economic Forum I 17
  20. 20. Global Growth Company Success Stories illycaffè Dark Victory i llycaffè seeks nothing less than perfection. “illycaffè is a stakeholder company founded on Founded in 1935 and headquartered ethics, whose goal is the improvement of quality in Trieste, Italy, the food and beverage of life,” Andrea Illy says. This philosophy explains corporation markets its signature why the company’s commitment to continuously espresso blend in 140 countries worldwide, exceeding environmental, social and economic employs 800 people, and serves more than sustainability standards on all rungs of the value 50,000 high-end restaurants and Italian-style chain has made illycaffè an industry-shaping coffee bars on five continents. leader. “Coffee that is consumed (Lest anyone forget, company mainly in the western countries comes founder Francesco Illy invented By guaranteeing a from the south of the world, from the “illetta”, the first coffee countries that often are poor and profit to its growers machine with automatic water underdeveloped,” says Anna Adriani, dosing and a compressed air in every transaction, illycaffè’s Global Public Relations and jet – which is the predecessor illycaffè has created Corporate Responsibility Director. “So of today’s espresso machines). a full-fledged, it is important that the company deals industry-leading with these countries in a sustainable, Led by Chairman and Chief ethical way.” Executive Officer, Andrea Illy, system that instils a a third-generation member of widespread culture illycaffè has long considered “quality” the founding family, today’s of quality and and “sustainability” to be inseparable illycaffè takes a holistic sustainability from – and contagious. Over the years, the approach towards its industry, company has made huge investments the boardroom to the in improving its environmental impact focusing on all factors that go into creating a singular cup plantation. management. Example: in 2003, its of espresso: the production, central Trieste facility rolled out a new the relationship with growers, the blend, the roasting unit, whose maximum fume emission machines, the preparation, the training of rate was over 1/20th lower than the legal limit – specialized bar staff, and even the design of the an initiative that significantly reduced its energy bars and venues where consumers consumption and increased its production enjoy a great cup of coffee. This capacity. 360-degree approach works: in 2010,?the From the coffee farmers in South and Central illycaffè group, with its America, India and Africa, all the way to the 11 direct and indirect espresso-sipping consumer, illycaffè’s tireless subsidiaries, achieved search for quality creates a virtuous cycle that consolidated sales of € 305 creates value for all its stakeholders. It buys million with 3.5% net profits, with the highest-quality beans directly from farmers, exports representing 56% of total paying them higher prices than international sales. market standards in order to reward quality18 I World Economic Forum I Global Growth Companies
  21. 21. products and foster ongoing improvement. In industry-leading system that instils a widespreadconjunction with the Oxford University Centre culture of quality and sustainability from thefor the Environment, illycaffè undertook in 2008 boardroom to the plantation. In short, everyone wins.a three-year research project to develop a moresustainable agricultural The food and beverageproduction system, and industry has takenidentify a model that notice, too. Whilecould be extended to global authoritiesother crop production have recognized andsystems. The result? honoured illycaffèA series of pioneering over the years forgrowing, production its sustainability (theand processing company’s awardstechniques, including include the UNI ENthe ecologically-sound ISO 14001 standard,“semi-washed” method certifying the company’sthat illycaffè suppliers environmentaluse during post-harvest management system;processing, which and the EMASpreserves up to 90% certification strictlyof the water that other governing emissions,methods consume, while energy consumptionalso reducing potentially and waste recycling),polluting waste water. few distinctions made illycaffè prouder thanBut producing one the distinction itblend across the world received earlier this year.means an increased In March 2011, illycaffèinvestment in logistics. How does illycaffè offset the was the first-ever company to receive the rigorouscost disadvantages, and balance short-term financial Det Norske Veritas (DNV) Responsible Supply Chaingoals with long-term green impact? “Again, for us, Process Certification, attesting to the company’squality without sustainability cannot exist,” says longstanding sustainable approach to production,Adriana. “This is our business model, our mission, one that recognizes everyone from the board ofour passion, and our obsession. ‘Short-term’ is not directors to management and operational personnel.part of illycaffè’s vocabulary. We are a stakeholdercompany whose historic and long-term goal is to illycaffè’s long-term success shows that creating aimprove the quality of life of everyone with whom we business on a foundation of ethical environmental,interact: customers, clients, employees, suppliers social and economic sustainability can create anand communities.” enviable – and duplicable – model of caffeinated growth, profits and pride.By guaranteeing a profit to its growers in everytransaction, illycaffè has created a full-fledged, illycaffè Industry Sector: Agriculture, Food & Beverage Location: Trieste, Italy www.illy.com Andrea Illy Chairman and Chief Executive Officer Global Growth Companies I World Economic Forum I 19
  22. 22. Global Growth Company Success Stories Indika Energy Staying Power I t can be challenging for a business and construction services; mining contractor and to succeed in Indonesia. Entrenched services; coal transport and logistics services; and traditional, the largest economy and even a power generation project. in South-East Asia is known for its complicated regulations and occasionally long- One major coup was the 2009 acquisition of PT winded bureaucratic processes. Moreover, the Petrosea Tbk, a multidisciplinary engineering, republic was hit hard by the Asian construction and contract mining financial crisis of the late 1990s, company with a high-achieving when Indonesia’s economy shrank The main driver track record in Indonesia. The by nearly 14%. But over the of Indika Energy’s purchase not only strengthened past few years, according to M. Indika Energy’s leadership in mining Arsjad Rasjid P. Mangkuningrat, moves: Strong services, but also buttressed its President Director and Co-Group integration along capacity to deliver total energy Chief Executive Officer of Jakarta- the whole energy services, from acquiring mining based PT Indika Energy Tbk, the supply chain. rights and feasibility studies, to Indonesian business environment mining operations, processing, has mounted a gradual, steady production and barging, and economic recovery. Notes Mangkuningrat, a transhipment and offtake – which is another way World Economic Forum Young Global Leader of of saying that the company, which currently has 2011: “The most important thing is that we are more than 6,000 employees, became a fully moving in the right direction.” integrated entity with strategic synergies in place to fuel its future growth, while leveraging Asia’s Take the company currently led by rapidly growing demand for energy. Mangkuningrat and his co-chief executive officer, Wishnu Wardhana, as an example. Incorporated The main driver of Indika Energy’s moves: Strong in 2000, with roots in the energy sector spanning integration along the whole energy supply as far back as 1973, Indika chain. “We want to combine natural resources, Energy is Indonesia’s services and infrastructure in a seamless way,” leading integrated energy says Mangkuningrat, adding that, in the past, company, providing its this has proven to result in group synergy and customers total energy improved operating efficiency. Although coal is solutions in the areas the core driver of Indika Energy, given the poor of energy resources, state of infrastructure in Indonesia, logistics and energy services and transportation are also vital components of the energy infrastructure. It supply chain. Adds Mangkuningrat: “In mining, accomplishes this through there are two main cost centres – mining services strategic investments in the and logistics – and by having these businesses, areas of coal production; we are converting our costs into revenue on a engineering, procurement consolidated basis.”20 I World Economic Forum I Global Growth Companies
  23. 23. Mangkuningrat believes that the company’s complete Driven by its goal to become an integrated world-understanding of the supply chain has given it an class energy player, the company will continueenormous advantage over other coal companies. leveraging Indonesia’s national resources, takingTake Cirebon Electric Power as an example. Cirebon advantage of the increasing demand for energy,not only buys the group’s low-calorific coal, but integrating its energy platforms with operationalalso ensures steady income for the group whenever efficiency, maximizing production, and increasingcommodity prices fluctuate. Says Mangkuningrat: partnerships within the energy sector.“This way, our financial risks are well-managedand, on the aspirational side, we have synergy and Final words? “Of course, like every business, we facesecurity.” a lot of challenges,” says Mangkuningrat. “But good corporate governance is transforming the IndonesianUnlike most Asian companies, Indika Energy has business environment. Has it reached 100% yet? No,a distinctive dual Chief Executive Officer structure. but we are getting there. The fundamental issues weAccording to Mangkuningrat, it is among the factors face are those faced by corporations everywhere:that makes the company unique, along with its globalization, competition and a pressing need forstrategy. “Indonesia has abundant natural resources, transparency. The best part is, we are increasinglypolitical stability, strong macroeconomic policy and primed to compete against ourselves.”a demographic bonus of a large, young population.Equally important, we have a young and verydynamic leadership team too,” he emphasizes. Indika Energy Industry Sector: Energy Location: Jakarta, Indonesia www.indikaenergy.co.id M. Arsjad Rasjid P. Wishnu Wardhana Mangkuningrat Vice-President and Co-Chief President Director, Co-Chief Executive Officer Executive Officer Global Growth Companies I World Economic Forum I 21
  24. 24. Global Growth Company Success Stories Karuturi Global Stemming World Hunger I t sounds at first like a fever dream: roses, website, www.rosebazaar. acres upon acres of them, growing in com, the only flower-auction portal Ethiopian and Kenyan greenhouses, in India and South-East Asia, is the against a backdrop of richly tilled land. culmination of Karuturi Global’s efforts to develop It’s even more surprising to discover that an a real-time auction engine for agro commodities Indian corporation, Karuturi Global, and other perishable goods. In is responsible for the planting, addition, Karuturi Global’s highly cultivation, storage, export, and Investing in profitable and fast-growing IT distribution of roughly 555 million agriculture is business offers e-commerce stems annually across Europe, the solutions to large MNCs and among the best ways medium-sized companies around US, the Middle East, Australia and Japan. not just to keep a Bangalore dealing with perishable reliable lid on supply goods and commodities, paper Karuturi Global is the world leader shortages, but also industries, workflow automation in the production of cut roses with and telecommunication, and to boost African and an 8% share of the floriculture it recently expanded into the market that industry experts predict global agriculture. consumer broadband market. will rise to 13% as the corporation expands its African base of operations. But But Karuturi Global isn’t merely a multinational that’s just one of its businesses. Back home in Indian agriculture products company. The Bangalore, the company is engaged in the bulk company is a genuine change agent for global processing, bottling, and export of gherkins and growth, prosperity, and cultural and economic other vegetables. The company’s e-commerce transformation.22 I World Economic Forum I Global Growth Companies
  25. 25. Among the company’s stated missions is to do is among the best ways not just to keep a reliable lidwhatever it can to help alleviate worldwide and on supply shortages, but also to boost African andAfrican food shortages. Towards this end, Karuturi global agriculture.Global was among the very first foreign firms toacquire land tracts from the Ethiopian and Kenyan Karuturi Global is also committed to sustainability.governments – to date, more than 300,000 hectares The company uses indigenous greenhouses,of land – to grow and produce maize, vegetables, rainwater harvesting, environmentally-friendlygrains, corn, palm oil and sugar cane. By April 2013, fertilizers, and hydroponic cultivation. Devoted toKaruturi Global will have developed one-third of favourably influencing the lives of African workers andits land-leased 300,000-hectare plot in Gambella, their families, Karuturi Global donates and distributesWestern Ethiopia, with the entire farm ready for clothing, has contributed US$ 75,000 towards oneplanting by the spring of 2015. Even better, despite township’s drinking water supply, provides free foodwater supplies being copious in Gambella, Karuturi and healthcare services to non-employed locals, asGlobal plans to construct its own irrigation and well as infrastructure to local police departments, andenergy infrastructure, rather than depend on an even manages a Kenyan football club. Alongside itsovertaxed government. social welfare and community development initiatives, the company has provided schools, housing andThe question remains: Why Africa? For agro-based transportation facilities to its 3,000-strong workforcecorporations, the continent is opportunity-rich. The across Kenya and Ethiopia.political and macroeconomic systems are stable.Land, labour and export prices are relatively low. And For the world and its fragile food supply, Karuturiin a world facing present-day and future food crises, Global hopes that everything will ultimately come upKaruturi Global believes that investing in agriculture roses. Karuturi Global Industry Sector: Agriculture, Food & Beverage Location: Bangalore, India www.karuturi.com Sai Ramakrishna Karuturi Managing Director Global Growth Companies I World Economic Forum I 23
  26. 26. Global Growth Company Success Stories Kokusai Kogyo Group (KKG) Behind Green Eyes and Green Vision W hat does Japan – and the rest of from its distinctive “perspective from the sky.” the world – look like from above? But in response to the demands of an Can an eagle-eyed environmental and energy age perspective help accompanied by climate change, a global society and governments spate of natural disasters and rapid worldwide grow safe, secure, KKG uses aerial IT evolution, KKG is pioneering a community-oriented infrastructures photography and wholly new course. Using its cutting- that put the environment, and high-resolution edge data capturing technologies to human beings, first? satellite to adapt acquire a wide range of topological, geological and oceanographic its findings to help One company strongly believes data, KKG has re-engineered the answer is yes. Since 1947, prevent, or mitigate, its geographical and geospatial publicly listed aerial-surveying future environmental information business into a “green specialist Kokusai Kogyo Group emergencies across infrastructure” business, with the (KKG) has been measuring the globe. goal of creating a low-carbon, everything from the continental disaster-resilient and, not least, shelf to outer space. In the 60- people-friendly society. plus years since its founding, KKG has come up with a wide variety of solutions, serving areas Under the leadership of its dynamic Chief ranging from city planning, disaster prevention Executive Officer, Sandra Wu, KKG has and protection to environmental improvements, rededicated itself to developing and managing green infrastructures on a global scale, including solar photovoltaic power plants in Japan and Europe. “We think it is the future,” says Wu. KKG wants to do more than simply maintain and/or preserve the global environment; it wants to change it. Accordingly, KKG has reorganized its core businesses into three synergistic segments. The Geospatial Consulting business uses cutting-edge technologies to support infrastructure development and protect society from24 I World Economic Forum I Global Growth Companies
  27. 27. natural disasters and environmental issues. From on disaster relief to the quake-hit area, KKG usedtechnical design to operation and management, the aerial photography and high-resolution satellitesecond segment, Green Energy, leverages KKG’s images, tsunami disaster simulations, and analysisexpertise in renewable energy to develop, operate of geological surveys covering active faults and otherand manage solar photovoltaic power facilities, hazard sources. An equally essential company goal:as well as to provide customized To adapt its findings to help prevent, orrenewable energy solutions to local mitigate, future environmental emergenciescommunities. Finally, KKG’s Green "The private sector across the globe. This past spring, WuProperty business is responsible joined more than 2,600 participants from and our society relyfor private and public property and 168 countries in the United Nation’s Globalconstruction management with on each other – and Platform for Disaster Risk Reductionsolutions for energy preservation we know we have to in Geneva. As the only private sectorand promoting use of renewable build together with panellist among ministers and leaders ofenergies, using its patented international NGOs, Wu drew widespread the society."geospatial technology and green attention and acclaim for arguing onenergy experience and expertise. behalf of what the private sector can bring to national and local-level disaster risk reduction –As it transitions to a future “Green Community”, namely expertise, experience and highly practicalKKG is today engaged in global environment-related solutions.projects in more than 100 countries and developingrenewable energy power plants across the globe. Actively involved in the World Economic Forum, andKKG plans on leveraging its track record in Europe one of the key players within the Forum’s Disasterand Japan as a springboard for future expansion into Risk Partnership initiative, the experienced, Chinese-Asia and other countries. “Our target has never been born Wu is one of the first Asian women to be namedjust Japan,” says Wu. “Whatever we do, we can to the leadership of a Japanese company, a listedintroduce the Japanese experience to the rest of the one with more than 60 years history. While Wu avoidsworld.” using words like “vision” or “mission,” she and her company are both bursting with plans for the future.KKG is also using its broad-based experience to helpthe world avert future environmental disasters. In the “As far as renewable energy is concerned, this is anwake of the Tohoku earthquake and tsunami, KKG important, even crucial, time for KKG,” says Wu. “Weset up an immediate response centre to provide up- want to make a contribution to society. The privateto-the-moment information to the central and local sector and our society rely on each other – and wegovernments. Shouldering the cost, and focusing know we have to build together with the society.” Kokusai Kogyo Group (KKG) Industry Sector: Infrastructure & Urban Development Location: Tokyo, Japan www.kk-grp.jp Sandra Wu Wen-Hsiu President and Chief Executive Officer Global Growth Companies I World Economic Forum I 25

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