Sasol ChemCity ED benchmarking study findings
Sasol ChemCity A journey of a thousand miles starts with a single step.' - Lao-Tse, Chinese Taoist sage
agenda • Sasol ChemCity • Introduction to the benchmarking study and its purpose • Methodology • Results • Conclusion • In closing
introduction to the benchmarking study Sasol’s enterprise and supplier development vehicle 76 employees Offerings – end-to-end Enterprise Development • Business development support • Commercialisation assistance • Funding assistance to suppliers • assistance with funds applications • Marketing assistance • Site selection assistance • Assistance with IP registration • Post implementation support • Sasolburg incubator • Sasolburg industrial park
Sasol ChemCity industrial park • 172 Ha Eco-Industrial Park being developed in Sasolburg • Focus on facilitating “industrial symbiosis” • Fully serviced land being donated to the Municipality but managed by a Property Owners Association • Multi–zoning – industrial to business general • Link to IDPs of Metsimaholo and FezileDabi Municipalities • BDS to be provided by on-site business incubator • Land for sale and for leasing- very competitive rates • BDS services subsidized by Sasol
Sasolburg incubator • 4000m2 mixed-use facility consisting of 4 production/ manufacturing facilities and one ‘knowledge’ centre • Focus on start-ups and existing businesses • Key support strategy to include Supplier Development for Sasol and other big companies • Qualified & experienced staff from Sasol, VUT & broader Sasol Network to deliver BDS
introduction to the benchmarking study “We didn’t know our blind spots” “It was also good to get confirmation of what we did know”
purpose of the study relevance aim • Establish leading industry insights into ED best practice. • Provide a platform for management to make informed recommendations on the most leveraged enhancements • Develop deep internal knowledge and IP regarding holistic ED leading practice. • Ensure ChemCity’s continuous learning.
methodology So how did we do it?
methodology – selection of participants Technology & Innovation ED Strategy Chemicals & synthetic fuel co-products ED Specialist Financial Services FMCG FMCG Fund Management FMCG & Retail Conglomerate Financial Services Programme Management Agriculture Research and Strategy Automobile Manufacturer Business Development Support Entrepreneur & Business Development Support Entrepreneur Training & Mentorship Incubator
methodology – process building questionnaire selecting participants calling priority participants transcribing conductinginterviews swamped in paperwork
results | the ED function • Clearly define objectives • IntegrateED with core business • Partnerships • Important stakeholder group within the organisation • Expert knowledge of the SMME landscape • KPI’s
results | programme management • 83% of participants stated that the most common way of communicating progress is by weekly project status meeting and monthly steercom meetings • 67% of the research participants reported that the ideal ED project team composition should include a pipeline manager, project manager and business analyst. • 83% of participants identified similar measures of success for their ED programmes namely; job creation, revenue growth and sustainability of businesses.
results | business development support • 57%of participants target their service offerings to pre-profit, post revenue and high growth potential SMMEsrun by entrepreneurs from previously disadvantaged backgrounds. • The most common business development support services include mentorship and capacity building, access to finance, networking opportunities, development programmes and an incubation environment. • Resources essential to the delivery of BDS included a database of financiers, industry specialists, mentors and service providers, whilst partnerships were found to assist in reducing operating costs.
results | business development support • The most critical areas of expertise required for a BDS team include: • Understanding of SA’s entrepreneurial landscape • SMME problem solving based mind set • Education and/or experience in commerce • Coaching development experience • Industry expertise • Governance and process controls implementation experience • 57% of research participants reported that they do not have an effective system to measure the success of the strategic goals defined at the outset.
results | fund management • 38% of research participants noted that their funding strategy was built from the need to create a triple bottom line return (economic, social, and compliance) through their Fund, • whereas the majority 62%of participants only sought to create social and compliance returns. • 63% of organisations receive their funds from their own organisation • There was a split decision between participants about whether their funds should be managed independently of their ED function by employing a fund manager.
results | technology and innovation • Recruiting talented scientists and engineers, was the foremost priority to enable success. • Building sustainable projects by matching the right internal and external resources to SMME needs was also identified as key to achieving measurable results. • The research findings highlighted the importance of directing investment to feasible initiatives with proven business cases in order to mitigate the risk of financial loss in investing in R&D initiatives. • It was also noted that the use of referrals as well as an online application process greatly enhanced the sourcing and selection of quality innovation initiatives.
conclusion • After conducting this study we: • Learned some areas that we could do better • Confirmed areas that we thought were important • Have a better appreciation of the challenges and opportunities in this space • Appreciate the collaborative spirit in this industry
in closing Thank you to the participants, and to Edge Growth for the contributions