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How To Have A Business That Offers Profit With Purpose

The role that ‘profit with purpose’ should play in building a sustainable business that consumers want to support, that solves real market needs, and that also makes a profit.

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Entrepreneurs are inherently problem solvers. We identify unmet needs and try to solve them by creating businesses to meet these needs. This may be why as a third generation business owner in my family, creating shared value resonates so strongly with my entrepreneurial journey.

Having cut my business teeth as a teen in the southern Johannesburg township of Eldorado Park, spending weekends and school holidays working in my family’s businesses, I learnt quickly the trials and triumphs of business ownership, particularly in a resource-scarce environment.

The entrepreneurial journey is often fraught with the hurdles of changing market conditions, resource constraints, business growth and team building. As the custodians of the business vision, we are required to be resilient in the face of obstacles and shortcomings.

Purpose will keep you and your business going

One of the most important tools I’ve come to learn in meeting such challenges is that of purpose. For many in business this purpose is personal, a growing family, a generational legacy or even survival.

As citizens of a country with soaring unemployment, deepening poverty and inequality and poor access to basic services for much of society’s most vulnerable, it’s incumbent on businesses to ensure that we put at the centre of our commercial gain a sense of societal purpose.

Related: 4 Rules To Tame Complexity And Bring Back Your Start-Up Agility

CSR is out; Creating Shared Value is the future of business

For too long now, business has been seen as a major cause of social, environmental and economic problems, generating income at the expense of society. More and more, business’s relationship with broader society has become vital in determining its value.

What is required is a rethinking of how we do business, and shifting to the new model of profit with purpose. We must internalise and adjust our approach to value creation in order to stay ahead and thrive or be relegated to the business strategy history books.

The Corporate Social Responsibility Model (CSR) has been a means thus far for business to address these issues and has been important for reputation management, however as peripheral activities limited by budget these falter in generating revenue for business.

Make a profit while addressing social and environmental issues

An evolution of the CSR model is to be found in Creating Shared Value (CSV), a business strategy that provides a means for companies to make profit in a way that addresses social and environmental issues.

Business has moved from philanthropy, through responsibility, to driving growth by creating new products and markets through CSV. This vital shift in business thinking and its implementation is an essential strategy for entrepreneurs to future-proof business for long-term gain.

By leveraging resources, market access, scale and their capacity for innovation, businesses can advance and accelerate development while generating commercial returns.

Related: 3 Signs Your Business Is Ready To Expand Internationally

Shared Value in practice

So, how can your business create Shared Value? It starts with an in-depth business analysis — and the commitment to a shift in strategic approach. Each business is different, and has the opportunity to engage with CSV in a different way.

Harvard Business School Professor Michael Porter, considered the father of Shared Value, shares practical insights on how businesses that intend to transition to Shared Value can do so.

1.Find a social or environmental cause

CSV is a business strategy that provides identifiable economic benefit to business while having a measurable impact on social or environmental issues. Identify a systemic social or environmental issue such as youth unemployment, access to healthcare or emissions reduction, which will serve at the core of your business strategy and inform all business activities.

A social entrepreneurship-based company can effectively utilise the UN Sustainable Development Goals as a basis from which to identify key areas of focus.

2. Innovate new products, services and markets

Create marketable new products and services that address this societal need. This can be done by gaining deeper insights through collaboration with stakeholders such as staff, customers and the communities in which your business operates. Open untapped markets by reimagining and, if necessary, redesigning existing products to cater to unmet needs.

As an entrepreneur I am inspired by stories of social innovators such as Sizwe Nzima, a 24-year-old from Khayelitsha, Western Cape and the founder of Iyeza Express Medicine on Wheels, a service that collects chronic medication from clinics and hospitals and delivers them to the sickly and elderly of the community. Sizwe is providing access to healthcare for users and simultaneously generating profit.

Related: How Ivan Epstein Grew A Bootstrapped Start-up Into An International Organisation

Another social ‘intrepreneurship’ story is that of Dr Gavin Armstrong of Lucky Iron Fish, who identified that nearly 3,5 billion people worldwide suffer from iron deficiency and innovated a solution in the form of a small iron fish that is placed inside a pot when cooking and has been shown to substantially reduce instances of iron deficiency and iron deficiency anemia. It’s a growing social enterprise working to improve the health of its users.

3. Redefine productivity in the value chain

Look inward and identify areas for improvement in internal operations and supplier relationships. The value chain includes everything from human resources to marketing to procurement and logistics. By reassessing the way your company does business, operations can be streamlined, suppliers can be empowered and costs saved.

4. Enable local cluster development

Create a conducive environment for optimal business operations to take place by addressing societal needs around the business. This also includes developing and empowering elements of the supply chain in order to encourage stability while benefitting the local community.

Nestlé, for example, has implemented a rural development strategy to support and empower the farmers on whom they rely for much of their raw material production. Having recognised that farmers earning a decent income and supported by a thriving community would produce more and better-quality produce, Nestlé has committed to working directly with farmers across the world, providing them with training and support and engaging with their communities.

This investment has resulted in higher yields of raw materials and a growing network of stable, productive suppliers.

The global shift towards Shared Value-driven companies operating in all fields and of all sizes is fast becoming a powerful movement. Business has the power to make positive change at scale, without compromising quality or revenue. CSV requires a commitment to making a core strategic shift to structuring operations around addressing societal and environmental needs, while maximising profitability. CSV is a new kind of capitalism, shifting the paradigm to profit with purpose. As entrepreneurs we must develop commercially competitive businesses that build our societies.

Less risk, more opportunity

Ryan Short, a partner at Genesis Analytics and a visiting lecturer at GIBS on its Creating Shared Value executive course, says Shared Value is a lens that companies should put over the whole business.

“Through Shared Value, companies are creating more products and accessing new markets that they haven’t thought of before. It’s changing the way we view and approach business.”

One key example of this philosophy and strategy in practice is Discovery’s Vitality programme. “Vitality is making people healthier and therefore serving a societal need, and it does it profitably,” says Short. “Discovery has found a way to twin social impact with profitable impact.”

WATCH THIS

Michael Porter: The case for letting business solve social problems

Acclaimed business strategist Michael Porter makes his case for why businesses should be solving social needs: Because when business solves a problem, it makes a profit — which lets that solution grow.

FIND OUT MORE

If you’d like to understand more on Creating Shared Value and how it can work for your business, the 2017 Africa Shared Value Summit will be held at the Sandton Convention Centre on 25 and 26 May 2017.

Visit www.africasharedvaluesummit.com for more information

Cindy Langeveld is a serial entrepreneur. She is also the co-owner and content producer at Shift Social Development, a consultancy that partners with business to co-create Shared Value solutions that address societal issues. Visit shiftsocialdevelopment.com

Company Posts

How TomTom Telematics Can Keep Your Business Moving Forward

Successful businesses need to find ways to improve their margins while still delivering excellent and efficient customer service. VDM’s CEO, Deon van der Merwe, explains why this wouldn’t be possible in his business without TomTom Telematics’ solutions.

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When TomTom Telematics entered the South African market in 2010, the local team took a deep dive into the different industry verticals they were servicing.

The more they got to know their customers, the more they realised a different solution was needed to address local conditions, and a subscription model was introduced whereby customers didn’t need to invest a large capital outlay into TomTom Telematics’ technology, but would receive the tech and software, including installation, at no extra cost, in exchange for a monthly subscription fee.

This model gives SMEs affordable access to TomTom Telematics’ solutions, but it’s had another benefit as well: As TomTom Telematics introduces new innovations, existing customers can benefit — without the costs associated with replacing all of their existing technology themselves.

An indispensable tool

For a transport and logistics business like VDM Group, which has more than 160 vehicles on the road, this means they have access to incredible new offerings, without needing to replace their TomTom units themselves.

“TomTom plays a critical role in our business,” says Deon van der Merwe, CEO of VDM Group. “It’s an indispensable tool in ensuring quality customer feedback and the management of KPIs for all supply chain stakeholders.

“Earlier this year, TomTom Telematics launched their New WEBFLEET product. We were very satisfied with what we had, and yet they still approached us and offered to replace all our existing units with new tablets, and they’re covering the installation costs,” explains Deon.

Related: Driving Your Business Growth Towards More Customers

“New WEBFLEET is the result of TomTom innovating their product based on customer feedback from around the world, and the local team wanted to ensure we had access to the additional functionality and innovations that had been introduced.”

Seamless integration with your network

According to Deon, the new TomTom PRO 8275 units seamlessly integrate VDM’s fleet scheduling software with information they extract from TomTom, including individual vehicles’ standing time and arrival notifications.

“The software from TomTom is open API, which means that all our various applications can communicate and interact with each other,” he explains. “From a productivity perspective, we no longer need to manually capture any trip information.

In addition, we have every conceivable piece of data available that will assist us to run a leaner, more cost-effective fleet, enabling us to ensure that we are delivering on all our KPIs — particularly with regards to meeting our customers’ needs.”

Related: Changing The Shape Of What’s Possible

VDM is a large transport business, but Deon believes the benefits for SMEs are as great, if not more so. “Many SMEs don’t have the back-office support that we do. The ability to capture and use this information without a team of admin specialists at your disposal is a huge competitive advantage for smaller businesses,” he says.

Offering you the competitive edge

VDM offers a specialised logistics service that creates custom-made options for clients. In order to ensure the most optimal and cost-effective solutions, while still ensuring top quality delivery, they need to consider special and complex individual customer requirements, from the point of origin to the point of destination, before finalising a customer-specific solution.

“We take into account a host of factors, including inventory carrying costs, volume requirements, product specific factors and route to market,” explains Deon.

“Road transport significantly impacts total supply chain costs, and if not managed properly, can have a severe impact on the sustainability of any particular channel. We try and manage this risk by continuously improving our service through innovative logistical solutions, the use of advanced technology, vertical integration and a team of passionate and talented experts.

TomTom assists in creating differentiators

“This focus has helped us to develop a market offering that includes dedicated and completely flexible inter-modal solutions, which is a big differentiator for us. TomTom Telematics plays a key role in our total productivity, helping us measure the performance of road transport across our supply chain.”

Deon believes that what you don’t measure you won’t know.

“TomTom provides updated fleet statistics that allow us to constantly benchmark our fleet against pre-defined route surveys and, in so doing, enables massive savings in fuel and total turnaround time.

Communicating via the WEBFLEET platform also helps us save time and creates a formal trail of correspondence with our drivers. I don’t believe it’s possible to successfully run a business like ours without a solution like this.”

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Sasfin Continues To Support SME Growth

Sasfin’s equity stake in fintech lender Payabill set to enhance SME growth.

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In another major step forward in supporting growth in SMEs, Sasfin today announced that it has acquired a strategic stake in fast-growing fintech lender Payabill.

Payabill, a 100% digital lending business, provides working capital and/or trade finance to small businesses. The collaboration between Sasfin and Payabill accelerates financing opportunities for customers.

Sasfin, South Africa’s leading business challenger bank, last year successfully launched its digital platform, B\\YOND, for SMEs.

“Sasfin has been investing in fintechs, building digital capabilities (such as B\\YOND) and working with third parties (such as XERO Accounting) for a number of years with the aim of adding value to our business and wealth clients. Payabill has made huge strides in giving businesses access to digital finance and we are thrilled to announce this investment,” says Sasfin CEO Michael Sassoon.

Payabill CEO Eli Michal launched the pioneering fintech start up in SA in 2017. Payabill settles suppliers directly for its clients and allows clients to select their own extended payment terms. “We are incredibly excited by the opportunity afforded to Payabill by having Sasfin as an equity and debt partner. Sasfin will provide access to new channels and much needed funding that enables us to support the growth of small business finance in South Africa,” says Michal.

Michal started the fintech as he “wanted to enhance access to finance for small businesses in South Africa. We all know that boosting small business creates jobs and enables growth. Traditional lenders have neglected this segment of the market due to the high costs associated with on-boarding and assessing these customers, as well as managing their credit risk. It made no sense to us that a retail consumer could get multiple forms of credit, almost instantly via electronic channels, but small businesses could not. They were being neglected. With this in mind, we set out to build a completely paperless, digital solution to address this market’s unique requirements.”

Currently, Payabill offers loans of up to R150 000 to businesses. The intention is that with the investment made by Sasfin, Payabill will be able to offer larger loans to SMEs in the near future.

The alignment of Payabill’s aims and Sasfin’s long-term focus on small business in SA made for an ideal partnership. “SMEs can now borrow digitally, via Payabill, and bank via B\\YOND from Sasfin – reducing admin and costs which often stifles small business growth. Both B\\YOND and Payabill are gaining meaningful traction in the SME market and there are a host of additional digital initiatives that we are working on to further help small businesses thrive,” says Sassoon.

“While Sasfin has always offered a trade and debtor finance solution, this was largely for more established businesses. The new offering speaks to smaller businesses that are passionate about growth, and our larger Trade and Debtor Finance offering will be there to support businesses that reach the next phase in their development,” says Sassoon.


Sasfin Holdings Limited (“Sasfin” or “the Group” or “the Company”) is a bank-controlling company listed in the “Financials: Investment Services” sector of the JSE Limited (“the JSE”).  Sasfin and its subsidiaries provide a wide range of complementary banking, financial and related services.

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Driving Your Business Growth Towards More Customers

Designed to help its customers get the most from their businesses through the right telematics solution, New WEBFLEET can help you reach your customers quicker, get more done, improve efficiencies, save costs and boost your revenues.

TomTom Telematics

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Europe’s highly regulated operating environment has made telematics ubiquitous in business. On the one hand, this means industries across the spectrum have become safer, more efficient and highly productive across the EU. On the other, it’s much harder to stand out from the crowd when everyone follows the same best practice standards.

“We don’t have those same stringent regulations in place,” says Justin Manson, Sales Director, Africa at TomTom Telematics. “Our clients have realised what a huge competitive advantage this actually offers them though.

“Locally, everyone understands the role that telematics plays in tracking what your drivers are doing right and wrong, and use it as a tool for encouraging good driving practices, but there’s so much more to this solution, and we’re making it our mission to help business owners really use it to their benefit.

“When deployed across the organisation to its full capabilities, a telematics system can radically improve productivity and workflow. Done correctly, a business can save up to 10% on its bottom line, and redeploy that cash into the company’s growth, thanks to drivers reaching customers quicker and getting more done. The right data also increases productivity and ensures better turnaround times.”

Thomas Schmidt, MD of TomTom Telematics, loves visiting South Africa for this very reason. “Because so many business owners aren’t using telematics to their full extent, there’s such a huge opportunity for us to assist businesses in their growth here,” he says. “We deliver a high-value stack of products that can change the way companies operate, and most importantly help them save money and make money. The challenge for us is educating our customers so that they understand what our solutions offer, and the incredible impact they can have on a business. We consistently improve these solutions based on customer feedback as well, making them very much from customers for customers.

Related: Why Your Fleet Management Plays a Pivotal Role In Your Business

“Anyone can buy a map for less than R100. Why invest in such expensive devices? The answer is because we’ve developed solutions that change lives. With the right data — and access to that data — you increase safety, simplify your business, drive efficiencies, increase your output and customer service, and ensure you are always productive and reliable — across the organisation. And that impact can be measured, and given a real ROI value.

“Imagine the impression companies that operate at that level make on their industries. They stand out from their competitors. There is so much room for growth in South Africa as we deploy these solutions.”

Game-changing solutions

As an organisation, TomTom Telematics is focused on continuous growth and innovation as well, constantly learning from market conditions, its customers and industry needs to improve its product offerings.

The result is the launch of New WEBFLEET in February 2018. “We’ve increased the value we offer our customers,” says Thomas. “We’ve collated data from hundreds of thousands of customers around the world who gave us their feedback through surveys, and New WEBFLEET is a window into easy-to-use, smart fleet management that is a game changer for companies.”

“TomTom Telematics is in the business of helping businesses,” agrees Justin. “Our goal is help our customers master their challenges. The right data at your fingertips will help you change the way you operate. That’s our goal. How much cash is being left on the table in an organisation because of inefficiencies?”

Introducing New Webfleet

The smartest way to manage your vehicles and mobile workforce

tomtom-telematicsTomTom Telematics’ state of the art Software-as-a-Service (SaaS) fleet management solution, with best-in-class user interface, is inspired by two decades of working together with customers to achieve more for better fleet management. New WEBFLEET is everything you need to manage your vehicles in the cloud, in real time. It allows you to monitor reports and dashboards, manage orders/workflow, and improve driving behaviour, safety and service, helping you save fuel and reduce costs.

Best-in-class user interface

  • A future-proof platform with a completely renewed interface, based on the latest HTML5 technology and driven by continuous innovation.
  • Simple and clean interface, with minimised clicks for faster working.
  • Intuitive functionality, means it is more accessible for greater impact across your business.
  • User rights management and state-of-the-art data handing ensures the highest level of data privacy and data security.
  • Fast access to the right information.

Related: Fleet Tools Will Help You Get More Done In Less Time

Map view

Know where your vehicles are and where they have been. Different map options such as Google, Google Street View or satellite map are enriched with traffic information, giving you a more detailed view on what’s happening on the roads. Toggle between different types of information on the map such as traffic, addresses and areas and create specific views, so you only see the information you need.

Dashboard

New WEBFLEET’s dashboard gives an overview of performance at a glance. Up to 27 KPIs can be used to track the performance of vehicles, individuals, benchmark teams or give a simple overview. This helps you to track real-time performance against your pre-defined KPIs.

Reporting

New WEBFLEET gives you instant access to the information that matters, meaning you can spot trends over time and use real-time information to make smarter and more informed decisions. You can instantly download or schedule reports to help you stay on top of everything — from fuel efficiency and legal compliance to quality of service.

Manage on the move

New WEBFLEET is optimised so you can manage your fleet on any device by entering WEBFLEET through a web browser or by downloading the WEBFLEET Mobile app on your smartphone.

Send routes direct to drivers

  • Plan accurate routes in New WEBFLEET by adjusting multiple variables such as location, time of departure/arrival, traffic and vehicle type.
  • Get a choice of alternative routes, as well as suggested fastest route with traffic.
  • Customise your route by simply adding new waypoints, or dragging and dropping existing waypoints on a route. Then choose from guided or forced route* options.
  • Send planned routes directly to a TomTom PRO driver terminal to keep your drivers on the right track.

Related: Time Is Money And It’s Time You Saved Both When Running Your Fleet

Personalised Map views*

  • Create your own saved map view to reach information you need fast.
  • Switch between vehicle groups or areas, without needing to adjust the map filters and zoom levels. n

Personalisation

Many ways to customise WEBFLEET to suit individual requirements from personalised views to adding information to make what you see more informative on one page.

Plan a route the way you want it

Use multiple variables (including waypoints) to give fastest or most efficient routes.

Access WEBFLEET

Across different device types, allowing you to always stay on top of business.

Simple, clean and easy to administer

Toggle between views to get the right information to focus on the task in hand. Get the right information to the right people at the right time, keep data secure and in the right hands.

Send routes to driver terminals

In real time, ensure drivers follow or avoid specific routes.

Visit telematics.tomtom.com/tellmemore and follow us on Twitter @TomTomWEBFLEET

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