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From the editor's desk: Blood Moon rising

February 2016 News

At its perigee, the moon appears larger and brighter to observers on earth since the lunar distance has reached minimum inflection in its elliptical orbit around our planet. When this coincides with a time of full moon, a “Supermoon” emerges unusually large and bright to dominate the night sky. When a Supermoon occurs synchronously with a total lunar eclipse, the moon’s surface turns red as it becomes enveloped in the earth’s giant shadow. The ancients dubbed this a Blood Moon; it was considered a harbinger of bad times.

The most recent Super Blood Moon Eclipse occurred during the evening of 27 September 2015: an event which coincided with volatility indexes around the world accelerating into overdrive in one of the worst economic storms to burst since the global financial crisis of 2008/9.

Volatility is a measure of uncertainty. Recently we have seen it increase in everything from global weather patterns to the grip of fear currently crushing the life out of world markets. Particularly affected are those emerging economies which depend on commodity prices for their wellbeing.

South Africa is a case in point. Faced with the worst drought in living memory, the devastating collapse in global demand for copper and iron, and an unpredictable political landscape, the ratings agencies have slashed their forecasts for economic growth in the region this year. In addition, the Rand has devalued to such an extent that rumours abound of an imminent interest rate hike to keep inflation under control; a factor that would hamper regional growth even further.

Since Blood Moon, market conditions have been at their most treacherous to navigate. But on the flip side, captains of industry have never had a more powerful array of technology at their disposal to help chart the course. It’s a “New Normal”. So what is a company to do?

Here’s looking at you, Siemens

The organisations that survive and grow into the next decade will be those that use and develop technology to bring them ever closer to their customers. Perhaps the best place to start then is an in-depth understanding of how well an organisation is currently perceived in this regard – an holistic view, from the outside in.

Siemens is a company which believes that it can only truly succeed in its mission if it helps to fulfil the needs of the societies in which it operates. The underlying rationale is that an organisation is much better positioned to ensure survival and growth when it adds lasting value to the community in which it serves.

To this end, Siemens Southern Africa recently invested in a study called “In South Africa. For South Africa: The Business to Society Report” to determine its contribution to South Africa’s well-being. This is an excellent example of a company that understands the value of that sometimes forgotten market adage: “Think globally. Act locally.”

Siemens recognised that only by understanding what is important to South Africa could it really evaluate its role in the country’s culture and society. Rather than viewing South Africa from the perspective of Siemens and its own operations, it looked inward at Siemens from the perspective of the country and its particular social, economic and political circumstances.

The question then becomes, “What matters to South Africa?” (Rather than, “What matters to Siemens?”) This is a novel and refreshing approach from a technology giant that understands that technology per se is but an enabler. The end-game is the right technology, in the right place, at the right time, and delivered exactly to operational requirements. The New Normal is market intelligence at its finest. (See 'How Siemens is helping to shape the development of South Africa' for the inside story and a link to the full report.)

Perhaps 27 September was not an apocalyptic omen sent to signal the collapse of the world market as we know it. There is hope for organisations that are willing to change and use technology to adapt. Uber, for example, used a smartphone to revolutionise an industry that had stagnated for decades.

The writing is on the wall. Like Siemens and Uber, the companies that walk out of the storm of Blood Moon will have adjusted; they will not look the same as when they walked in. That is what storms are about, after all.

Steven Meyer

Editor: SA Instrumentation & Control

[email protected]



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