Afternoon Tea in Jerusalem Blog

In addition to my work as a business coach, one of my interests is blogging about life in Israel. This is a country full of contrasts – over eight million citizens living in an area the size of Wales. You can see snow and the lowest place on the globe in the same day. Although surrounded by geopolitical extremes, Israel has achieved a decade of high economic growth. My work brings me in contact with an array of new companies, exciting technologies and dynamic characters. Sitting back with a relaxing cup of strong tea (with milk), you realise just how much there is to appreciate in the Holyland. Large or small operations, private sector or non profit, my clients provide experiences from which others can learn and benefit.

In a series of articles on Israel, CNBC television has noted that “Hightech makes Israel dream of other industries”. Quoting Avi Hasson, the former head of Israel’s Innovation Authority, they reported:

Traditional definitions of high-tech and low-tech are out of date. Everything is getting technologized. There’s not a single sector that’s not being disrupted, or that doesn’t benefit from innovation.

As if to prove the point, CNBC went on to highlight Israel’s move into space tech, a field previously confined primarily to the ‘big nations’. This is after Israel has set the standards in mobile tech, accounts for around 15% of international investment in cyber security, and with some irony – considering the oil price wars of the 1970s and 1980s – is now a pioneer in car technology.

However, Hasson makes a important point. Israelis look for the opportunity to innovate, and this is not restricted to high-tech. Here are three brief case studies to illustrate what I mean.

ITEM 1: Sitting in my office in Jerusalem last week was a team from a small private company, closely involved in social services. Established for some years and with a clear set of revenues, they are trying to create a new strategic plan. To put this another way, they are prepared to rip up their existing business model and start again.

ITEM 2: About a week and a half ago, my son asked for a ‘free consultation’, as I bought him brunch. He wanted to know how he should combine his studies, while also developing the concept of his start up. I encouraged him to look at the bright side.

Over the past 18 months, he has set up an NGO for a subject that he is passionate about. This has involved defining the potential market of the NGO and what content it can provide clients. Further, he has recruited a team of volunteers, who are now motivated and dedicated to the cause. Last month, they held two successful events. As he clearly understands, this process is very similar to that of a start up. In other words, with some patience and a great deal of determination, there is a good chance that he will come through on all levels.

ITEM 3: Israel has a biblical connection to wine. A bunch of grapes is the symbol of the country’s tourist industry. But whisky, well, that is another story. It is now evident that “Milk and Honey” is now longer just another phrase from the time of Abraham. It is the name of the Israel’s first distillery. It was established as the result of a chance conversation between some young entrepreneurs about five years ago.

The factory is located in southern Tel Aviv, which bears few similarities to the glens of Scotland. And yet the team has raised money via a crowdfunding campaign and it had secured the services of one of the industry’s prime tasters. Israel’s first ever single malt whisky – over three years in a cask and released at 46% strength – is soon to hit the shops.

And whilst this latter form of innovation and entrepreneurship may not be to the accord of everyone, these anecdotes go to show how the Israeli economy has emerged. As described above, in Israel even the most traditional of industries are today part of the world of high-tech.

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