says Kia Siang Hock.” says Kia. these facilities have a collection of more than 1. Combined. tactical and operational levels. deputy director of technology and innovation at the National Library Board. The NLB comprises 25 public libraries and one national library. “With millions of users accessing tens of millions of physical and digital resources across Singapore.5 million other items. it appears natural for libraries to be among the first to explore the potential of big data technologies. the NLB possesses a treasure trove of valuable data. which has put big data technologies in to optimize its library collection to meet customer needs.DATA MINING | TAO AI LEI SINGAPORE LIBRARY MINES BIG DATA Singapore’s National Library Board is using big data technologies to make the vast collection of books and other resources more easily accessible to library users and employees HOME 2  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 As guardians of books. One such example is Singapore’s National Library Board (NLB). the NLB decided to use big data technologies to derive actionable insights across the entire organization at strategic.5 million titles and 8. to recommend books and to make library resources more accessible. In view of the huge and complex datasets it is dealing with. generating more than 30 million loans per year. text and data. .

“We took a phased approach. HOME SINGAPORE LIBRARY MINES BIG DATA ERP. PictureSG (September 2013). Singapore Memory Portal (August 2013). enabling customers who search for a book to receive information about the book. To do this. “Project teams were formed for each THE NLB DID NOT WANT TO PUT ITS USERS THROUGH A COMPLICATED AND TEDIOUS SEARCH PROCESS. and started putting recommendations onto electronic resources such as Infopedia (June 2013).” says Kia.” adds Kia. customer satisfaction improvements through better service.” The system uses collaborative filtering technology – a data mining technique – to mine reading patterns based on the libraries’ past three years’ loan records. the NLB used a combination of internal and external resources. it had to grapple with the question of whether busy users can find the information they require. The NLB also uses content-based filtering of the books’ bibliography records to generate another list of . The NLB did not want to put its users through a complicated and tedious search process. which it realized would hinder the efficiency of searches. and leveraged partners and vendors in many of the big data implementations. “We built up basic internal capabilities. “We started exploring text analytics in 2013. but wanted to make relevant information more readily available to them. To do this. With so much data available. Applying collaborative data mining techniques and text analytics to past loan transactions as well as books’ bibliography records can help its employees and library users generate better search results and recommendations.” says Kia. BUT WANTED TO MAKE RELEVANT INFORMATION MORE READILY AVAILABLE TO THEM big data implementation. and each project team would identify the data requirement. and better use of NLB services and resources. it realized it needed to connect up the huge and growing volume of structured and unstructured information resources in its repositories. It decided this was where big data technologies should come in.DATA MINING | TAO AI LEI “The proper mining of such data unearths hidden treasures that can lead to productivity gains through better decision-making. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK Hide and seek One issue that had to be faced was the sheer quantity and variety of books and items in the NLB’s collection. plus data on related book titles. and 3  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 cross-recommendation from Infopedia to PictureSG (November 2013).” The NLB has created a title recommendation service that offers more relevant data to its users on its websites and portals.

“We experimented with various options. The system ran out of disk space after just over a week of scanning. we inevitably faced the technical challenge of volume. For example. and found a solution in clustering techniques. a service similar to that offered on Amazon. it was clear that the technologies of data mining and text analytics were relevant and useful. but when we needed to handle 20 million newspaper articles.” says Kia. Clustering techniques were also applied to segment the datasets into smaller clusters for efficient text analytics processing. but often had errors. Newspaper microfilms were digitized by using optical character recognition software. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK recommended books under the heading “similar titles you may also enjoy”.” 4  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 Another challenge emerged when processing the older issues of the newspapers. This automatically connects its rich collection of digitized resources to enhance the search and discovery experience of its users and improve the use of the digitized resources. The system now generates recommendations for 89% of fiction titles and 53% of non-fiction titles. THESE ERRORS INTRODUCED ‘NOISE’ INTO THE DATASET complexity of the computation. reflecting the fact that fiction titles are loaned more frequently. It also set up a full Apache Hadoop cluster with 13 virtual servers on three virtual machine hosts to ensure a scalable. The NLB uses Mahout text analytics software operating on a Hadoop cluster from the Apache Software Foundation. These errors introduced ‘noise’ into the dataset and significantly increased the NEWSPAPER MICROFILMS WERE DIGITISED BY USING OPTICAL CHARACTER RECOGNITION’s website.DATA MINING | TAO AI LEI HOME SINGAPORE LIBRARY MINES BIG DATA ERP. To meet this challenge. .” Although scaling up the hardware is straightforward. “We needed to be innovative. Dealing with scalability One issue the NLB faced was scalability.” says Kia. “As we progressed. the NLB adjusted the parameters of the text analytics algorithm to ignore infrequent word tokens. “Through the proof of concepts. it was not feasible beyond a certain point. scaling quickly became an issue. resulting in lengthy processing and the need for a large amount of intermediate disk storage. BUT OFTEN HAD ERRORS. distributed and reliable computing platform.000 items. it took minutes to perform text analytics on the Infopedia collection of about 2. particularly when dealing with the millions of newspaper articles that are available in its NewspaperSG service.

middle management and operational staff. procuring and processing of library materials. “Millions of library users benefit from this. but the NLB also uses advanced business analytics to optimize the library collection for users. procuring and processing of library materials that were previously based on [human] experience and judgment. n has written about the technology industry for over 10 years. so we can search the raw content of our resources. To date. Setting maximum and minimum amounts for each category in each library enables planners to steer the collection to a good balance between relevance and comprehensiveness. to one supported by data analytics. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK Selecting books Another area where the NLB faced a huge volume of data was in the selection. and has started work on geospatial analytics for library planning. She is based in Singapore. “The user base touches all levels of staff – senior” says Kia. The well-stocked library has a team of professional staff dedicated to this process. It also analyses the fact that popular categories that are on the shelf for less time require less space to recommend what to remove from the shelves and what to buy each year.” says Kia. sourcing. sourcing. The NLB hopes to introduce semantic information and language translation into the system. maximizing the number of loans given the constraints of space. as they find library materials more relevant to their interests because their demands are automatically taken into consideration in the collection management cycle. “We are exploring content analytics technologies for voice-to-text. and is the former editor of a regional IT weekly in Asia. but it is not content to rest on its laurels. “With the big data program. we have transformed the processes of selecting. TAO AI LEI . image matching and video content. HOME SINGAPORE LIBRARY MINES BIG DATA ERP. The DA forecasts library users’ demand for new and existing titles. improved productivity and increased the use of NLB resources. CP uses optimization technology to plan the NLB’s lending collections by determining the category mix in each public library. 5  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 The technology considers declines in readership and the age of titles in various categories in different libraries.” The NLB has come a long way. The big data implementations have provided better insights for future planning. “The library users also benefit from the rich contextual discovery experience made possible by the use of text analytics. and can be contacted at taoailei@gmail.” says Kia. and it has since processed almost 10 million newspaper articles. cost and budget.” This is achieved through the demand analysis (DA) and collection planning (CP) components of the NLB’s big data program. and provides an aggregated demand forecast to the CP component.DATA MINING | TAO AI LEI These systems have enabled the team to reduce the time needed to process the data. the NLB has implemented a comprehensive range of big data technology across the organization.

with CRM doing even better in Australia. but Salesforce. the market for enterprise application software (EAS) continued to grow last year throughout Asia-Pacific. as were upgrades to existing systems. The EAS category covers such varied sectors as enterprise resource planning (ERP). web conferencing. so it is not surprising that the overall revenue figure for Apac (excluding Japan) was US$12. not all sectors grew at the same rate. p7). And with 7. The same was not true of China. while others are moving to cloud-based or subscription-based systems as a logical way to grow their businesses. Australia stood out as the fastest-growing market in Apac. The headline EAS revenue figure for Australia alone was US$3. the variation in the top five suppliers in Australia compared . The top five suppliers were unchanged (see pie chart. and project and portfolio management (PPM) software. As well as the three strong performers mentioned above. Gartner puts this down to slowing domestic and export market demand.9%). it also grew faster than the region as a whole. but not as rapidly as in 2012. supply chain management (SCM).6bn in 2013.4bn. software as a service (SaaS) and cloud deployments were key areas for spending last year. Some organizations are consolidating and supporting existing systems. making up more than a quarter of the entire Apac total. ERP.DATA | ALEX CRUICKSHANK ERP. According to Gartner. digital content creation (DCC). customer relationship management (CRM).com was in fifth place. business intelligence (BI). enterprise content management (ECM). but says the whole region is undergoing cyclical change. but their individual successes and performance in the different Apac countries varied greatly. office suites. CRM and BI see strong growth in Asia-Pacific Australia stands out as fastest-growing market as Apac region undergoes cyclical change from Gartner. which were the winners and losers in 2013? The same as those in 2012. However. CRM and BI/analytics were the strongest performers across the ACCORDING TO FIGURES HOME 6  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 region. Australia’s top four rankings were the same. And as regards software suppliers. a much larger country than Australia but with a smaller EAS revenue (US$3.7% growth over 2012. These represent a wide range of software products and services.1bn) and weaker growth compared with 2012 (5.

1% Oracle ALEX CRUICKSHANK BEAT THE GAME OF RISK Yonyou SOURCE: GARTNER (MARCH 2014) 4. because ERP is still the dominant software revenue contributor in many emerging countries. given the cyclical nature of the market. Ben Whisson EDITOR TechTarget 8 Cross Street Level 28 PWC Building Singapore 048424 Jon Panker EDITORIAL DIRECTOR Scot Petersen DESIGN Linda Koury VICE-PRESIDENT APAC © 2014 TechTarget Inc.6% Others SAP 49. COVER IMAGE: WAVEBREAKMEDIAMICRO/FOTOLIA 7  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 . More than 100 focused websites enable quick access to a deep store of news. About TechTarget: TechTarget publishes media for information technology professionals.1% TechTarget Asean Media Group Karl Flinders PRODUCTION EDITOR Claire Cormack SUB-EDITORS Jason Foster. Our live and virtual events give you direct access to independent expert commentary and advice. such as China. we could see another strong year. advice and analysis about the technologies. products and processes crucial to your job. No part of this publication may be transmitted or reproduced in any form or by any means without written permission from the publisher. Ministry of Prose. n has been a technology journalist since 1994. you can get advice and share solutions with peers and experts. but. He lives in New Zealand and runs his own writing agency. Supplier rankings Top five enterprise application software suppliers.2% 4. That makes sense.4% 12. our social community. At IT Knowledge Exchange.DATA | ALEX CRUICKSHANK HOME SINGAPORE LIBRARY MINES BIG DATA ERP. if emerging Apac countries start to demand the same EAS tools as the more mature markets. Craig Harris. TechTarget reprints are available through The YGS Group.6% IBM 7. And what of 2014? We won’t know the numbers for another six months or so. 2012-2013 market share Microsoft 23. it seems likely that overall growth will be modest. Asia-Pacific (excluding Japan). CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT with Apac as a whole is due to the differences in technology priorities between mature and emerging markets. with local suppliers playing stronger roles than international suppliers. However.

SOFTWARE PLATFORMS | LAUREN HORWITZ HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT Organizations salivating over cloud computing benefits but skittish about putting business documents in the cloud have a new.” says Gianneschi. who asked that his company should not be identified. In recent years. any time access to information. the ECM market has seen users run in droves to file-sharing applications. on-premise resources as well as public cloud infrastructure – meant the company could avoid the upfront costs and management headaches often associated with on-premise software. best-of-both-worlds option HOME 8  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 Choosing cloud-based enterprise content management (ECM) over on-premise software has been a no-brainer for some organizations. ECM in the cloud has become an increasingly attractive option for companies with distributed workforces that need anywhere. But it has taken some time for the market to catch up with user needs. such as Box and . Lawrence Gianneschi. “I want to get out of the provisioning business. did not want to manage his organization’s ECM system and hardware. Moving to a hybrid cloud-based system – a cloud computing environment that uses private. a legal information and technology manager at a New York consumer products company.

RESPONDENTS WERE ASKED TO CHOOSE UP TO THREE ITEMS. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC Cost reduction in IT resources compared with running the system on-premise 38% Better availability across a multi-site organization HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT 25% Improved mobile access and collaboration with people outside the firewall BEAT THE GAME OF RISK 17% Faster or easier deployment of projects and collaboration sites Cost structure: trade-off of operational spending versus capital spending Offloading ever-increasing storage provision to the cloud provider More features and modules compared with what is affordable on-premise 15% 14% 13% 11% Unlikely to deploy cloud-based content SOURCE: AIIM’S INDUSTRY WATCH: ECM AT THE CROSSROADS. BASED ON 362 RESPONSES OUT OF A WIDER SURVEY OF 538 AIIM MEMBERS. 9  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 46% .SOFTWARE PLATFORMS | LAUREN HORWITZ Dropbox. with perhaps the most promising prospect being the hybrid cloud. or all. because they provide easy access to information and a forum for collaboration. enterprise content in the cloud is cold. the ground beneath suppliers’ feet is shifting. As mobile devices. ECM suppliers have taken a hard look at these defections and are beginning to build forward-looking enterprise content management technology. HOME Why the cloud? SINGAPORE LIBRARY MINES BIG DATA The biggest driver for putting some. social media and cloud computing proliferate. despite security concerns. Others have defaulted to shared company drives out of frustration with difficult-to-use software. ECM software is finally starting to meet users’ needs. hard cash savings ERP.

” Before 2010. And they keep sensitive corporate data behind the firewall. HP’s dominance in the ECM market didn’t hurt. They also enable records management and disaster recovery through file-syncing. it will be the right solution for a lot of companies. then integrate document management with 10  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 other key aspects of the workflow. but also easier access for remote workers and better security than standard file-sharing.3bn in 2017. HYBRID CLOUDS ENABLE ECM FUNCTIONALITY. “If hybrid cloud matures.” says Gianneschi. an analyst at Forrester Research. with version control. It also needed a central location where its 200 attorneys in 33 offices around the world could share files with version control and a clear trail for documents. “We needed to have a place where attorneys could collaborate better.” says Alan Weintraub. either. In total. Also. such as e-billing. the ECM market as a whole is poised to grow from a forecast of $5. and break down information silos. They offer a central location from which workers can share and edit documents from anywhere. According to a May 2013 report from the Radicati Group. integration Gianneschi’s company chose cloud-based ECM software from Hewlett-Packard’s Autonomy unit. the legal department at Gianneschi’s company had no content management system. partly because of the software’s ability to integrate with IBM’s Lotus Notes and other back-office systems. integration. BUT ALSO EASIER ACCESS FOR REMOTE WORKERS AND BETTER SECURITY THAN STANDARD FILE-SHARING Gianneschi’s team wanted a seamless way to manage content to prevent manual rekeying of information for better enterprise search. SearchContentManagement’s 2013 Reader Survey found that the biggest ECM-related challenge for one in five respondents was deploying and managing cloudbased ECM. The company also needed ECM technology that could integrate with various back-end systems and manage the information throughout its lifecycle in those systems. safe from prying eyes. workflows and audit trails. they can span standard ECM functionality with better ease of use and access. records management and legal matter management. “I know [Autonomy] will .2bn last year to $9.SOFTWARE PLATFORMS | LAUREN HORWITZ HOME SINGAPORE LIBRARY MINES BIG DATA ERP. “It will gather steam. Integration. and it needed document management to govern information related to legal matters. A system that could share information would also enable better management of records and information. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK Hybrid clouds enable traditional ECM functionality. Big future for hybrid cloud Many industry experts see hybrid clouds as having a big future in ECM.

but not the ECM. ROM president and CEO Marianne Petillo says the company chose Hyland Software because it could integrate with ROM’s claims system. At the time. or viceversa. Integration with other systems was also important to ROM Reinsurance in New York. In addition to the company’s need for cloud-based software to enable third parties to access some of its content.” At InterContinental Hotels Group (IHG) integration has also been a serious concern – and one of the key purchasing criteria for its choice of Alfresco One software. For example.SOFTWARE PLATFORMS | LAUREN HORWITZ HOME SINGAPORE LIBRARY MINES BIG DATA ERP. the application can store documents associated with a property visit. Now the information from one can be fed to the other through the unique identifier of the claim record number. which the company brought into production in April 2011. Sharing information among systems is hugely important. we were concerned that this could happen again. Petillo says this minimizes human error from faulty keystrokes while also creating data consistency between systems. When calamity strikes Physical disaster can threaten company data. Hummingbird and SpringCM. Nearly 90% of the company’s essential data resided in one in-house server. the company uses Salesforce. The net result eliminates manual re-entry of data between the claims and document management systems. “But if the system is pulling it in. Alfresco One was particularly appealing given its 11  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 open-source code and robust application programming interfaces (APIs). With an API from Salesforce to Alfresco. ROM was devastated by Sandy.” says Petillo. including SharePoint. ROM’s staff needed access to its claims files and other data. “Sometimes. IHG had numerous systems. in Hyland Software’s OnBase on-premise ECM system. Now IHG can provide interfaces to Alfresco from numerous back-end systems. but cloud-based ECM has become a real antidote to risks of on-premise data loss. if the system is down and staff didn’t get a chance to enter into the imaging system. The goal was to restore business functions to . CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK play nice with all of those companies because of market share. and those documents are then also stored in Alfresco. with its office submerged in 13ft of water. After the storm hit. which handles workers’ compensation to schedule site visits to properties.” says Gianneschi. “Having lived through 9/11 and then Hurricane Sandy. Displaced for more than five weeks. then you don’t have that problem. work ground to a halt for three days. ROM’s cloud-based ECM software enables staff to work off-site during a catastrophe and provides critical business continuity for data in the ECM system. says Simpson.” she says. director of application development and integration at the hotel group. a contract might be in claims. ROM has first-hand experience. In 2012. to house its company documents. says David Simpson.

12  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 JIM ANDERSON. ROM shipped the server hard drive to Hyland and tried out the company’s OnBase cloud software. Cloud doesn’t always fly But some companies and industries may never move their ECM systems to the cloud. Also. secure and compliant with all applicable regulatory requirements. given the complexities of their industries. and there are cloud and on-premise versions. from clinical trial research to back-office documents. CLS’s chief systems officer. detailed audit trails. The software caters to the healthcare industry and provides a high level of data security that could be applied to all content. secure information system. “We couldn’t validate the robustness of the system. “We didn’t feel that comfortable putting all documentation in the cloud.SOFTWARE PLATFORMS | LAUREN HORWITZ HOME SINGAPORE LIBRARY MINES BIG DATA ERP. ECM software from M-Files fitted the bill. “It was a bit higher than what we were paying monthly. wanted an ECM system that could govern all its content. says he weighed up the costs of ensuring clients that critical data was confidential.” says Jim Anderson. biotechnology and medical device companies.” The platform has enabled staff to collaborate on a single. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK displaced workers quickly. Brian Morgan. chief systems officer at CLS Investments. US-based CLS Investments has other back-office apps in the cloud. “We couldn’t validate the robustness of the system.” says Morgan. requires the integrity of those documents. Given the importance of data security. electronic signatures. controllable and differentiable access rights. with more efficient workflows. “We need to be able to prove to the US Food and Drug Administration that we have adequate version control. MedTrials. uses cloud-based back-office applications but didn’t feel comfortable moving the company’s enterprise content to the cloud. Integrity of documents “Clinical research. Petillo says the security of having backups and data offsite and accessible in the event of disaster was an added insurance policy. For example. but it was not willing to move its ECM system there.” Other organizations have considered putting ECM in the cloud but decided against it. a US contract research organization that provides clinical development services to pharmaceutical.” he says. centralized platform.” adds Petillo. chief operating officer at the company. while ensuring a compliant. but we felt the security was worth the difference. . costs are offset by eliminating the upfront hardware and management costs of maintaining the OnBase server in-house. which is heavily regulated and all about documentation.

” So while companies such as CLS Investments and 13  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 BRIAN e-billing. MedTrials have rejected the cloud. Tomorrow’s ECM Despite the issues.” says Javanainen. Finally. for example. says last year. others in the industry say their cloud-based business is growing more quickly than what is running on their on-premise platforms. software that is customized for the healthcare industry. records management and IT management really well. secure and compliant with regulatory requirements.” he says. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK But industry regulations and data security are not the only hurdles for cloud-based technologies. senior director of product management at M-Files. “If you have already invested in infrastructure. Javanainen says that for organizations that want mobile capabilities. document management. the holy grail would be one system for all business processes – a “universal remote” of sorts for all content management. growing adoption suggests that ECM in the cloud has a future – if users are brought along and suppliers heed the call for ease of use. “We needed to do some things on our end to allow better performance.” n is an executive editor in TechTarget’s business applications and architecture media group. And even with solid integration. Performance was a key issue for Gianneschi. the company had 60% growth in its global cloud software. Mika Javanainen. That led him to pick the on-premises version of M-Files. and that meant improving his company’s internal networks. “It will become more prevalent over the next couple of years. compared with 45% growth in on-premise technology. every supplier will offer a hybrid model. and the IT department tagged HP Autonomy traffic as “mission-critical” to speed traffic delivery. So the consumer products company bought Cisco Systems’ WAN accelerators.” says Forrester’s Weintraub. he says. Email her at lhorwitz@techtarget. cloud-based ECM software makes sense. LAUREN HORWITZ . which allows ECM systems to play well with others.SOFTWARE PLATFORMS | LAUREN HORWITZ HOME SINGAPORE LIBRARY MINES BIG DATA ERP. “In the future. particularly startups or companies without huge investments in datacenter infrastructure. “But a startup may not want to own infrastructure at all and go with a cloud-based ECM. it makes sense to choose on-premise ECM because of the cost of ownership. needed a system that would ensure that critical data was confidential. chief operating officer at MedTrials. budget management. the company benefited from Autonomy’s moves to boost performance through software optimization. says Gianneschi. But there is no single company that performs matter management.

By contrast. Unfinished business The current sense of urgency about risk management comes from the greater tenacity of watchdogs and law-enforcement groups of all types in the wake of the global financial crisis.CONNECT IT MARY DRISCOLL Beat the game of risk Organizations need a new way to guard against forces that threaten to damage business – and it starts from the bottom up ever. among others. assessing. with designated “process owners” who have decision-making rights authorized by the board of NOW MORE THAN HOME 14  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 directors and CEO. But consider just one obvious counter-example – cyber security. And they are emerging more quickly and packing a bigger punch than ever before. What is needed is a new approach to enterprise risk management. This gives them a good handle on the risks that could put the company in a harsh light if any were to materialize. business executives need a clear view of the perils that could inflict harm on their finances or reputations. Some 43% do not have a process owner who updates the board about shifts in the ranking of risks large enough to disrupt the organization’s strategic objectives. A survey of senior executives at 96 large multinationals indicated significant process weakness. The US Department of Justice. which is no longer the sole domain of the CIO. the 57% that do have one feel confident about identifying emerging risks. have been pursuing corporate mis-steps and wrongdoing with zeal. too many companies take the tick-box compliance officer’s view of risk – a matter that should be handled by individual business units. . Yet research by benchmarking firm APQC shows that most organizations cannot call their risk management efforts “best practice”. the Securities and Exchange Commission and the Senate Permanent Subcommittee on Investigations. Their objective is twofold: ensure that business-unit heads – the “risk owners” – follow well-defined steps for identifying. from global supply chain disruption and cyber security breaches to competitive weakness and corruption. Despite such far-reaching threats. mitigating and tracking strategic risks and report regularly to board members and senior executives. Commerce is fraught with so-called strategic risks.

Exxaro’s risk management efforts are highly organized and collaborative. It also shows how effective the controls are and who is responsible for them.” Now Exxaro can depict identified risks on color-coded heat maps. says that before adopting a standardized approach to risk identification and assessment. says van Loggerenberg – its root causes and potential impact. By exploiting technology to help implement this reform of its risk-management processes. n is senior research fellow at APQC. for example. and we had a separate project risk management methodology as well. Email her at mdriscoll@apqc. “Safety risk management followed its own methodology. The reward: peace of mind Today. “No matter whether you are assessing at a business unit or corporate level. “We had an operations methodology that was also completely different. the second-largest coal producer in South Africa.” he adds. risk and compliance software from SAP that drives uniformity. which provides full details on a specific potential hazard. Exxaro’s risk and compliance manager. And it comes from everybody in the company having the right kind of decision-support software.” says van “finance had a high-level risk assessment that was done annually to ensure we comply with legislation and license requirements”. departments and business units can have conversations about risks with different viewpoints on impact and different thoughts on probability. a non-profit organization that provides expertise on business benchmarking and best practices. “People across functions. collaboration and risk correlation. And that suggests where the true value of enterprise risk management lies: helping people grow the culture’s risk intelligence. HOME SINGAPORE LIBRARY MINES BIG DATA ERP. “We are able to look at one risk across multiple business units and multiple projects. The software also enables access to the “riskper-page” report. MARY DRISCOLL .” says van Loggerenberg.” he adds. you know you need to pay attention. well-structured and robust conversations among board members – with senior managers and the process owner present – about the desired balance between risk versus reward. The report maps out a particular risk 15  BUSINESS INFORMATION • ASEAN • SEPTEMBER 2014 – the inability to attract critical skills is one. CRM AND BI SEE STRONG GROWTH IN ASIA-PACIFIC HYBRID CLOUD MOVES IN ON ENTERPRISE CONTENT BEAT THE GAME OF RISK Digging out the danger A good example is Exxaro Resources. which distributes 40 million tons a year. When people see that a risk has been logged into the system. they are on alert. The report also shows what controls the company has put in place to address the risk – more on-the-job training. if you see risk raised. Saret van Loggerenberg.CONNECT IT | MARY DRISCOLL That confidence comes from regular. Exxaro uses governance. Exxaro can compare risks across the company more easily. events that could tip the balance and emerging risks. definition and terminology.