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Israeli high-tech – the freedom to pass over the controls of regulation

21 April 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

For at least two decades, Israel has excelled in latest industrial revolution, which has loosely been called high-tech: internet, mobile, cleantech, nanoteach and more. Simply, this is all about grasping the freedom and the opportunity to push back the established boundaries of what was considered an untouchable norm.

This week, Jews around the world prepare to celebrate the festival of Passover, when the Children of Israel fled Egypt after the story of the Ten Plagues. In Hebrew, this period is often referred to as the festival of freedom. With some ironic sense of timing, the positive higtech news from Israel of recent days illustrates the connection between the religion and finance.

Take the headline that GM is likely to double its r&d presence in Israel over the next few years. Gil Cohen, the local CEO, observed that: “The expansion is a central component of our investment in the idea of the autonomous vehicle.” The campaign will aspire to mimic the human mind, allowing the vehicle to make real time decisions instead of a human driver. Regulation cannot control such progress.

Meanwhile, based in central Tel Aviv, Apester has just raised a further US$12million to support its operations, which provides publishers and brands with tools for telling stories and encouraging user engagement. The company has been around for barely two years, yet it has offices throughout Europe, as well as in America and in Japan.

What is really clever is not only does Apester allow companies to predict accurately the tastes of its clients. The same techniques can be applied to politics. Thus, in recent weeks, this start up has predicted with increasing detail and accuracy just why Hilary Clinton was going to win the state of New York from Bernie Sanders.

In the field of biotech, many of the world’s leading conglomerates are now seeking Israeli partners, who are directed to source them the next mega technology. Roche, Novartis and Bayer are three prime examples. The reason is very simple. These commercial giants have long realised that their own teams cannot keep up with every single area of new technologies. To power to create a change in the status quo lies elsewhere.

What next? There had been plans to regulate Israel’s cyber industry. This policy was scrapped earlier in the week, and instead the local authorities will rely on an international standard. Freedom, so long as it is not abused in the name of political correctness, is a most valuable tool. We should cherish it. We should understand what freedom provides both in terms of added commercial value and also in our way of life.

3 reasons why small businesses fail – & why do we never learn

18 April 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Last week, Dan and Bradstreet in Israel (D&B) issued its annual survey of local SMEs, small and medium sized businesses.

  • Over the past five years, roughly 50,000 operations started up each year, while 40,000 closed their books.
  • For the period of 2013-2015, there has been a 27% rise in those filing for bankruptcy.
  • Meanwhile, the country’s economy grows steadily at around 2.5% annually.

There seems to be one stand out conclusion from this. First, while the big guys generally continue to do well, the SMEs are prone to struggle.

D&B point to three central causes of failure when trying to learn to swim in rough financial waters.

  1. 20% – poor cash flow.
  2. 50% – weak business model / lack of profitability.
  3. 30% – bad decision making skills/ questionable management technique

(It is interesting to note that the fact that many business leaders in Israel have to commit time each year to military reserve duty was not designated as a key reason for failure.)

I have not carried out a thorough search, but these finding are similar to several other countries, such as in the UK.

What surprises me is that if these are facts that are so generic and been around for years, why do the founders / senior partners in SMEs not take more steps to prevent such follies in advance? Why do they wait until the last moment or close to it, before they call in the help of a consultant or business coach?

I guess that the fault lies in people like me, the blog writers. The next time we write a piece on “the three part checklist to set up a new business”, we should include a promo for ourselves. Find yourself a neutral external business mentor or consultant, who you can rely upon for some practical advice.

Motivating employees – key practical hint for employers

14 April 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

The ritual is familiar in organisations around the world. How can you motivate employees, day in and day out, to ensure that they deliver their very best?

For years, human psyche demanded that the answer lay in the size of the pay cheque. More recently, blogs are full of alternative solutions. For example, this article from a human resources agency, ADP, refers to nine useful approaches.

  • Challenge and train
  • Make people feel appreciated
  • Give employers autonomy
  • Create winning teams
  • Ensure they have similar goals to you
  • Just talk to them
  • Be flexible
  • Give time off at key moments
  • Be fair, and not just right

I am sure my readers can add to this list. And when you consider it, many of these things are incredibly obvious. As a business coach in Israel, I encourage my clients to adopt much of the above. But this subject raises one very difficult question.

If these concepts are so intuitive, why do many of us simply fail? We do not apply them. Is it that we are too lazy? Or that we are caught up in the day-to-day running of our companies or departments that we forget? Are we so scared that “bonuses” will reveal that the staff may actually know something we do not or possess a skill that we do not have?

What these questions highlight is that our approach to motivation often lacks the appropriate balance. We tend to start from a premise of “why are they not motivated?”.

Instead, I suggest that managers and leaders first ask themselves what they can do differently. How do they need to change their own approach in order to encourage and motivate their colleagues and employees further?

How the Israeli economy could really outperform its OECD friends – 3 suggestions

13 April 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The latest OECD predictions for the Israeli economy forecast a growth rate of 2.8% for 2016.

On the down side, this is way less than the average for the past decade and it barely matches the current natural increase in population. However, it is similar to what Israel’s own Finance Ministry has begun to predict. And compared to many other members of the OECD – USA 2.3% and the EU 1.6% – this is a relatively healthy stat.

For me, these predictive models raise a far more important issue. Over the past 18 months, I have become increasingly critical and worried over the way the government has been handling (or more precisely, not handling) the changes in the Israeli economy. So I would like to present here three practical proposals that could make a significant and positive difference to the structure of the economy in the Holy Land.

First, I will borrow the conclusions of John Chambers, the CEO of Cisco, a company which has purchased 12 Israeli start-ups in recent years. Speaking at a convention in California, featuring the achievements of the Israeli start up scene, his thoughts are pertinent.

Chambers is adamant that for Israel to remain at the forefront of the high-tech revolution, it must ensure the more members of the ultraorthodox Jewish community and also the non-Jewish sectors have clearer opportunities to become entrepreneurs. For this to happen, the education system has to become more adventurous. To date, while there are some moves on this front, it is evident that the government needs to do a lot more. It is drastically behind the ballgame, as others like France catch up.

Second, at the same conference, the mayor of Jerusalem, Nir Barkat, spoke of the plans to treble the number of start ups in Jerusalem. He also spoke of his aim to ensure that the number of tourists visiting the city leaps from two million annually to ten million.

A great vision. And this is a man with many talents. However, Mr. Mayor if you were to drive around key parts of the city, you will notice that the road system is antiquated. In an average working day, the flow does not….well, does nor flow! For example, if you want to enter or leave the Har Hotzvim industrial zone, which includes a large Intel factory, there are invariably traffic jams at many hours of the day. That is not sustainable. There must be a better approach, as this is costing time and money.

And my third category is that old subject of bureaucracy. As a business mentor with many SME clients, I see how they suffer. Just today, one customer was seeking a change to his banking arrangements. He was asked to supply a wad of signed documents from his accountant. This cost him hours. And I myself was told yesterday, in the age of notarised digital signatures, that a new client will not work with me until I hand in some paperwork with an original signature.

Such demands are pathetic and restrictive. Change them and small businesses will begin to breath that bit more easily. And remember that SMEs comprise over 90% of the economy.

Is the Israeli government looking to do anything serious about these three issues? For all the talk, nothing definitive is likely to happen. The demands of coalition politics forces those at the top not to decide. It is safer that way.

And that is why Israel’s economy will continue to plop along at around a weak 2.8% annual growth rate, …..until somebody has the courage to shout “enough”.

Israel’s economy in 2016: Ignoring the warning signs?

7 April 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

Earlier this week, the Bank of Israel (BOI) released a report on the outlook for the domestic economy.

There is much to be thankful for. Growth will continue in a similar manner as in the previous two years at around 2.8%. Unemployment is expected to remain low at under 6%, even if the figures only include those actively looking for work. Stability looks to be the name of the game.

In the export market, there is concern. High tech sales are stagnating. Overseas sales in the electronics sector have slowed from an annual growth of 10% to only 5%. And yet, in the defense sector, mainly as a result of the “ISIS pull”, there has been a 120% upturn in European demand for Israeli products.

In parallel, the level of foreign direct investment, particularly in start ups, sees no sign of trailing off. 81 companies pulled in about US$1.0 billion in the first quarter alone of 2016. Encouraging.

And yet, there is a feeling that something is not quite right. The stats seem to be hiding some warning signs. And it was noticeable that two of the three leading Hebrew economic financial newspapers, “The Marker” and “The Calcalist” wrote long summaries, and neither were particularly warming.

“The Calcalist” – Economist in English – observed how the price of housing, particularly for newly marrieds was refusing to budge downwards. Further, for all the economic success, stretching over two decades, Israel still lags behind the OECD average in work productivity. Large sections of the population do not benefit from formal education up to the age of eighteen. And the country still invests comparatively little in infrastructure, including transportation and health.

“The Marker” was more specific. Quoting Karnit Flug, the Governor of the Bank, it wrote: “If we were to close the productivity gap with the average for the OECD, we would be able to raise our standard of living by about a third.” That to me is fairly damning.

And what is worse is that is no apparent plan to achieve that target and thus capture that dramatic improvement for all!

Exports were down last year by over 1%, at a time when the global economy was finally moving ahead. The positive change in the GDP, the main measure of economic growth, was caused by an upsurge in consumer spending (as opposed to investments or exports). That could create an economic bubble. Even the upturn in government revenues was caused by a 30% surge in taxes on real estate – another explanation for spiraling house prices.

And so the list goes on. As for the big white hope, taxed profits from new offshore gas industry, the government’s inept handling of the issue has almost brought overseas investment in the sector to a halt.

Is there a way out? Surely -, a strong government that replaces meaningless one-off populistic statements with solid and fully thought-out long-term measures. However, the current Netanyahu administration, which has the largest numbers of ministers in years, lacks the combined ability to set out such a policy towards renewed growth.

Sad. There again, politicians are amongst the highest paid people in the country.

It is time to wake up…….. right now!

Israeli Cleantech remains ahead of the game

5 April 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

It has been a week of stunning success for Israeli Cleantech.

For a start, the U.S. Energy Secretary, Dr. Ernest Moniz, coincided his trip to the Holy Land with a visit to the EnergyTech Conference in Tel Aviv. This linked up the new challenges facing the defense industry in the field of energy, both from overseas as well as the demands posed by green technology. Moniz went on to sign a new cooperation agreement with his Israeli counterpart.

However, for me, the highlight has been the Cleantech 2016 Conference in Jerusalem. Arguably the most important display featured an agreement between Israel and China to create an clean, green city. However, at a micro level, I also found myself interested in SMEs like Green Power Management, which have devised a transparent and practical solution to save energy costs for companies with multiple buildings.

Israel is no stranger to the world of cleantech. It pioneered drip irrigation back in 1959. Around 80% of waste water is currently recycled. Desalination plants provide about 40% of the country’s water needs. And next-stage technologies include:

  • Suction scanning, ensuring a full flow of filtered water
  • Laser analysis to detect solids in water
  • Microbial fuel technology to produce electricity from water
  • The conversion of hydrogen in energy and then its complete storage

Etc, etc, etc

I often mention that Israel is a small country, barely the size of Wales and 50%  arid. And yet, I seriously urge you to watch this link, which brings out visually just how much Israelis of all backgrounds have to offer the world to make it a cleaner place in which to live.

That question – that annoying business coach

1 April 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The key line on my website reads: “Michael asks you the questions about your business that you do not want to ask yourself”.

That is one of the classic roles of a business coach or mentor. That may seem straight forward enough. However, when I describe this challenge to people, some question the importance of the proposition. This week, I was given several opportunities to take explain in detail what I meant, and I would like to share a couple of those experiences with you.

Case study number one:

I am mentoring a very commercially experienced lady, who is trying to set up a new opportunity in Jerusalem. She is doing this while not having deep financial reserves. The proposed structure will involve her using her background as a CPA to investigate new companies. Meanwhile, she knows that her own bank account is not too healthy for now.

I asked why she does not check up on her bank statements to make sure that everything is all right. To cut to the point, she answered that she was too afraid. And then I posed the following conundrum: How can you present yourself as competent to run the finances of others if you do not look after your own books in a professional manner?

Silence.

I reassured her that I understand how the numbers may not be pretty. They may even make the body shudder, briefly but involuntarily. Yet, experience dictates that when you take control of yourself, it has a positive knock-on effect with how you handle potential customers. It is as if they can trust you. (She later told me that she started checking her account that same evening).

Case study number two:

I was required to ensure that a client pay me some extra money. That is often a touchy subject, and not just for one party. Naturally, I was asked to justify my request. And then it occurred to me.

The client was not just concerned about their own cash flow, understandably. There is another factor at play. If they agree to what I request, they have to recognise that they have made serious progress.

Amazingly, that cognitive step is often very daunting for people. the default position is to be reticent. And so I questioned why they did not want to appreciate the success of what had been achieved to date.

Silence.

And it is that silence that leads to a lot of internal chatter – just above the eyebrows of my clients. And it is that mental process that suddenly jolts them forward towards their commercial vision……all of which highlights the value of top questions from a testing business mentor.

Israeli innovation – connecting Black Eyed Peas to Hutchinson Water

29 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

This morning, I read in the Hebrew press that Will.i.am’s smartwatch, owned by  the Black Eyed Peas frontman, has hooked up with ai.Type. This is an Israeli start up, based on a small farm and that specialises in keyboards for mobiles. This added capacity is supposed to enable the watch to compete with the likes of Apple and others.

Interesting as that is, what followed was quite phenomenal. I attended a conference at the Hebrew University of Jerusalem that highlighted how established conglomerates are deliberately seeking Israeli innovation.

I was particularly interested in the talk by Dr. Dan Eldar, the Executive Director of Hutchinson Water, the Hong Kong multinational. In one of his opening points, he stressed how Hutchinson deliberately chose Israel to be its global centre for water innovation. This recent video explains why.

Eldad highlighted Israel’s Sorek desalination recycling plant, which is one of the largest in the world. Its capacity is such that water is not just supplied to the Palestinian Authority. Water is also ‘exported’ to Jordan, whose resources are further stretched at the moment following the heavy influx of refugees from Syria.

Eldar was followed by Professor Uriel Levy of the Hebrew University’s Nanotechnology Centre. In 2015 alone, this complex was responsible for launching eight start ups. In total, they have applied for nearly 450 patents, and still counting.

One story that captivated me is a capsule that can be lodged in large electricity boxes. If there is a short circuit or other problem, a gas will be emitted. The capsule will detect the dangerous change and set off an alarm. Simple. Discovered by an electrical engineer? No way! A chemistry professor was working on a pharmaceutical project and simply injected a touch of entrepreneurial thinking. (Ironically, one mobile provider in Israel crashed last week, because of this very reason)

The examples of innovation flew in thick and fast, especially when discussing 3D printing. Lego in Denmark uses about 60 different colours of paint. From tomorrow, the toy giant may need to order just black and let technology do the rest. And so on.

Kudos to the organisers of this conference. And for those who view Jerusalem as just a metropolis for religious tourism, think again. The holy city is again beginning to change the world, this time with a stunning catalogue of innovative ideas.

Boycotting Israel – call for an improvement

28 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

This Monday morning in Jerusalem a conference will take place on how Israel and Jews around the world can combat BDS. This movement was founded over a decade ago to promote a boycott, divestment and sanctions against Israel and Jews.

Proponents argue that this is a justified response to Israel’s occupation of the West Bank. Supporters of Israel point to the campaigns similarities with laws that emanated in Nazi Germany. Simply put, BDS is anti-Semitism wrapped in the language of the politically correct.

Israelis note that boycotting Israel today – and why just Israel, as opposed to China or the many countries that abuse human rights such as through the use of the death penalty – is plainly hypocritical. Just take one level: Intel, Facebook, Google, Samsung and hundreds of other multinationals, who dominate lives of all, have large r&d centres in the Holy Land. Israeli know-how is thus present in the daily lives of billions.

On a micro level, I was struck by three stories over the past few days that show how BDS fails to comprehend the realities on the ground.

Shamir Salads is located in the heart of the West Bank. It has annual turnover of around US$35 million, primarily fuelled by exports to Europe. Employing dozens of Palestinians, all are paid with full social security payments such as national insurance and pension schemes.

Zvi Meir owns three textile factories in the Palestinian territories. He employs over 200 hundred locals. He estimates that his workers earn close to double what they could make in similar Palestinian enterprises.

And then there is Adel Sharfati. If you look him up on the internet, you will see that he is an Arab resident of East Jerusalem, very much opposed to the policies of the Israeli government. And yet, this man is about to be accept a special prize awarded annually by the Jerusalem City Council.

Why? Because Sharbati’s specialty is to resolve disputes between neighbours, which often have violent overtones. He never had any formal training and yet has been sought after by locals for over 30 years. Now his efforts are being formally recognised.

My point is that it would seem that BDS is clearly having traction in causing some neutrals in Europe and in the USA to despise Israel, and thus de facto to despise Jews.

On the other hand, the list of interactions between Jews and non Jews in all parts of Israel, including the West Bank is actually very long. You can observe this every day in hospitals, on the light railway in Jerusalem, in the Kenesset and elsewhere. These are all signs of Israel’s multifaceted, democratic society.

Evidently, BDS campaigners need to ramp up their hatred further if they wants to meet their targets.

The “shaming of Israel”

26 March 2016
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Categories: Afternoon Tea in Jerusalem, Israel

The terrible slaughter of 31 people in Belgium last week brought back equally horrific memories for all those who have suffered from modern terror in the past two decades or so. France last November; London ten years back; Spain, Bali, and of course multiple cities in Israel.

And whilst all these countries sent their messages of condolence to Belgium, only one is perpetually considered a rogue state – Israel. The continuous pressure of the BDS campaign is a testament to that international pressure.

The technical term for using the internet to embarrass people (countries, institutions, etc) is called shaming. Only this week, Sky News examined how this form of cyber bullying  – this time, with school children – is often cruel, ill judged and frequently factually inaccurate. Yet it continues and grows, and thus prejudice thrives.

And Israel, often seen as ‘politically incorrect’ has become a soft target. For example, a few days ago, an Israeli NGO released a picture, seemingly showing an Israeli soldier illegally shot dead a Palestinian. the victim was already severely wounded, having just attempted to murder Israeli soldiers. The international media was quick to condemn what seemed to be an unnecessary final shot.

Simple, no? It is an Israeli soldier, and therefore he is in the wrong…is the logic of shaming

It now emerges that the soldier, who fired the bullet, had identified a belt on the Palestinian that looked very suspiciously like a belt used by homicide bombers. A decision was demanded, there and then. The shot was taken.

Was that the correct decision? A full legal investigation is pending. However, imagine for a moment a similar scene in Belgium. Assume that the mysterious third attacker had not fled, but was caught up in the mayhem. He was wounded, badly, lying on the floor at the scene of the carnage, with his homicide belt strapped to him. He is then spotted by an armed policeman.

That policeman has to make an instant decision. Does he try to save the life of the bomber, which may then risk the lives of many more or take the shot and neutralise him? And if he took the shot, would he be shamed? I think not.

We grieve for Belgium and its citizens. The threat of terror has materialised into a reality. It is time for Europeans to learn from other countries on how to deal with this hatred, while protecting the democracy of multi-cultural societies. As far as I know, only Israel fits that ticket.

Signs of Jerusalem economy on the upturn

25 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The Jerusalem economy has been in the doldrums for quite sometime. However, finally the capital city of the Holy Land may be showing signs of an upturn.

Dating back to the last war with Hamas in Gaza in the summer of 2014, the Israeli economy took a hit. This was specifically so for the small enterprise sector, which is predominant in Jerusalem. Anecdotal evidence from my business mentoring clientele seemed to bear this out.

One headline in today’s local paper stresses a survey from Dun and Bradstreet. 8% of businesses in the Jerusalem region are in danger of closure. That downturn could impact on employment and then have further knock on effects.

However, there is a flipside to this. Maybe times are already changing. I have previously mentioned the success of JVP, the Jerusalem-based venture fund that has expanded its financial capacity this year for new projects. Other indications include: –

  • In contrast to the early winter months, reports from my clients now point to a change for the better in their sales since the beginning of February 2016.
  • The monitoring company RIS has noted a significant pick up in sales at the major shopping malls, ranging between 16% (Malha) to 25% (Ramot).
  • The Atarot industrial zone, where Jewish and Arab companies mix openly, now has plans to free up a further 30 dunams for development.
  • And if you want to get into the high-tech area of Har Hotzvim in the north of the city, space is not too easy to find. Hence there is much new building going on in the area.

It is impossible to be sure. However, it is clear that something is happening in the Jerusalem economy for all sectors. It is now time for central government to take responsibility to ensure that infrastructure is improved further and thus the upturn can continue.

Israeli high-tech goes upside down

24 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

This has to be one of the most surprising headlines concerning the success of an Israeli high-tech company.

“Israel’s Cellebrite linked to FBI’s iPhone hack attempt“

Bizarre, but true. The story is very simple. The FBI have been demanding that Apple Inc help them crack the phone of the San Bernadino attackers, who terrorised California in December. The mega conglomerate has refused to cooperate. Instead, the FBI has now turned to an Israeli cyber security firm that specialises in mobile forensics.

However, the background to the story also needs to be recalled. Just as Israeli high-tech growth has continued very solidly over the past few years, the country’s relationship with the Obama administration has gone in the other direction. Somehow Bibi and Barack cannot find a way to get along. So to find the top cops of America turning to Israel for help may at first sight seem a little unusual.

There again, this week Jews around the world are celebrating the festival of Purim. It recalls a time when Haman, the senior minister to King Xerxes – known in Hebrew as Ahaseurus – wanted to kill all the Jews in the Persian empire. Mordechai and Esther turned the plot around. The instigators were eventually hanged.

Parallels with the policies of modern Iran? History shows us that the obvious and the expected is not always what happens. Israeli high-tech merely exemplifies how this pattern continues.

We should offer congratulations for some assertive lateral thinking by the American detectives. And viewing Apple’s refusal in the light of the Brussels massacre, you have to wonder again if the company needs to rethink its policy.

The secret of Israel’s innovation success is…….

19 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

The two announcements last week have almost slipped under the radar. And yet their significance for the Israeli economy could be immense.

First, Amazon, which is to strengthen an r&d centre in Herzylia, just north of Tel Aviv. The aim is to recruit dozens of software engineers to work on Kindle. These will join about 20 or so others, who are already employed under the relatively secretive Lab 126.

There is more. Amazon’s “Vision” team in Haifa is also to be bolstered. And Israelis will also be sourced to fill positions overseas. However, for now, little has appeared on the internet.

Second, and at national level, Israel’s Ministry of Economy announced “the selection of 18 technological incubators and one biotechnological incubator……The winners will enjoy an 8-year license during which projects they accompany can receive government funding of 85% of the budget approved for each company“.

What is impressive is the range of the licensees. The names of the partners include IPG/McCann, Boston Scientific, Motorola and the Cleveland Clinic. The big guys need to learn from the Unicorns.

It is interesting that much of the fuss in the social media has concentrated on JVP in Jerusalem, and with good reason. Preqin ranks JVP as one of the top-10 most consistent funds globally.

Clearly these two items are a massive endorsement in the continually developing story of Israel as the ‘start up nation’. What I find significant is how they have been barely reported upon. Yet over the next few years, hundreds will find employment, tens of millions will be invested, and exports will expand accordingly. In classic economic theory, this will create a positive domino effect.

And that is what much of Israeli innovation is all about – getting on with it. These entrepreneurs silently push aside existing boundaries in whatever was thought of as an immovable given.

What Israeli hides about its record on female equality in workplace

13 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel

International women’s day has come and gone for 2016. This year, as in 2015, the UN singled out Israel – and Israel only – for having a poor record in this arena.

Is it justified? Well, according to one stat quoted in the Hebrew press, over the past twelve months, there were 36,000 entries on Facebook to attack women. And twice that number was recorded in terms of detrimental comments (bitch etc.

On the other hand, there are more women than ever (28) in the Kenesset, Israel’s Parliament consisting of 120 representatives. This stat compares very favourably to the rest of the Arab world which can probably only average a paltry 5-6% female representation.

So let me expand on that very factor. Similar to other parts of the Middle East, Israel also has two large conservative pockets of society, where the role of the women is limited. To generalise somewhat, I am referring to the Ultra-orthodox Haredim and the Arab communities.

According to figures released by the Hebrew newspaper Yediot Ahronot, back in 2009, there were barely 1,500 ultraorthodox women working in Israel’s thriving high-tech community. By the end of last year, the number had jumped to 4,000. A further 3,000 will have finished training during 2016, ensuring that the trend will continue.

Let me spell out the point. The more women are seen and felt in the workforce – especially in positions of responsibility – the more they will be able to secure the respect of others. We have seen how the army no longer tolerates harassment. Women have reached the top positions in banking, the courts, ownership of football clubs and much more.

In a region of the world, where soldiers are allowed to rape in lieu of pay and women are executed without trial, Israeli women of all persuasion and ethnic background continue to show how they make a positive difference on society. It is sad if not down right pathetic that the UN uses its vast resources to condemn such vital progress.

Why Israel and the ‘start up nation’ had another successful week

10 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Microsoft in Israel is celebrating ‘big time’ at the moment. After 25 years in the Holy Land, the Bill Gates team has much to shout about. And next month, the tech giant will open another new centre – this time in Nazarethand thus deliberately targeting new employment for Arab men and women.

Look just a little further and you will quickly realise that these developments are just a small part of a yet another great week for the world of Israeli high-tech. Consider this selected list to illustrate what I mean.

  1. Intel is to lay out around US$175 to possess the Israeli 3D video tech firm Replay Technologies. In effect, this cements a joint venture that started back in 2013.
  2. In the field of biotech, the American investment group Maxim issued an incredibly positive report. It issued a ‘buy’ suggestion for 6 Israeli companies, where shares are considered to be undervalued by at least 100%.
  3. Cyber as ever was in the news. It was CyberArk making its third Israeli purchase, this time picking up Agata Solutions. Not bad for a 7-person outfit, located way outside the traditional Israeli techie zones.
  4. Amazon has concluded a lease for a 1,250 sq m site in Haifa to accommodate a new r&d quarter.
  5. Singapore’s OUB Group will invest US10m in the Jerusalem-based OurCrowd, which specialises in Crowd Funding.
  6. “The Nazareth Business Incubator Center announced the launch of Hybrid”, a programme supported by the government and ex-army geeks and aimed at bringing startups from Israel’s Arab community to the next level.

And so I can continue. These items show the extent to which Israel has become a key part of the international commercial community. In turn, the world has come to appreciate the country’s technological capabilities. Israel continues to deserve the honourable title of ‘start up nation’.

Jerusalem, March 2016: Still a city of miracles

9 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

It’s the 9th March 2016. This morning in Jerusalem, reckless acts of violence were committed against Jews, almost like in the days of the crusaders hundreds of years back.

However, despite the blood and suffering, there is one major difference between now and then. The perpetrators of old were seeking to replace one theocracy with another. This time they are attempting to destroy a successful pluralistic society.

And what is that pluralism and multi-culturalism? Well, in no order of importance, this is what is going on in Jerusalem over the next three weeks.

  • It is estimated that around 22,000 runners will take part in the 6th annual Jerusalem Marathon on March 18th. Around about 10% of the participants will have flown in specially from overseas.
  • Over the same weekend, the first International Bach Festival will take place in the holy city. Hosting a wealth of local talent and from abroad, one critic speculated that there is no other such celebration of music taking place on the birthday of the renowned composer.
  • To the world of high-tech, the city continues to show off its prowess. I have previously addressed the strengths of the biotech and VC sectors in Jerusalem. The recent international successes of Melodea, Lightricks, Mobileye and others confirm the point.

However, for me, what was really telling about today’s event near the Old City of Jerusalem was the nature of the person injured in the malicious attack by a Palestinian. Apparently:

….paramedics treated a man about 50 years old who was seriously wounded in his upper body. He was sent to Hadassa Medical Center in Jerusalem. The wounded man is (also) a Palestinian, from Beit Hanina, who was in his vehicle on his way to Jerusalem’s city center.

Yes, Jerusalem is open for business to all, whatever their background and religion.

Jerusalem: The mix of orthodox religion and modern entrepreneurship

2 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Jerusalem is primarily known as a centre for three major religions. When you talk about the land of miracles, this is the town where amazing events are supposed to take place. What many people around the globe do not realise is that for over decade, the ‘Jerusalem Syndrome’ has come to represent something beyond prayer. The holy city has become an entrepreneurial hub, looking to emulate the Silicon Valleys in other countries.

On Monday this week, I attended another very exciting networking event of BioJerusalem. Shai Melcer organised an excellent programme, showing how start ups can succeed, even under the present economic climate.

What stunned me particularly was a map that Shai’s team had collated. It pinpointed the ‘life science ecosystem’ of the capital. Over one hundred companies are featured – and I myself know of at least three more – located primarily in three clusters. That is quite an amazing achievement when you consider the political, economic and religious pressures converging on the city planners.

And I can tell you that if you walk around these centres, they resonate a tremendous verve of activity and dynamism. To give one small example, consider Brainsway that has rapidly developed an international reputation for treating depression in a non-invasive manner. Its technology is now used by the American navy.

The week has also featured a number of articles on JVP. Set up back in 1993, this venture capital fund is situated in the former premises of the government mint, tucked away in the south eastern corner of the city. From simple beginnings, from its doors have emerged global animation sensations and some of the pioneers of the world’s cyber community.

JVP is currently sitting on a fund of around US$200m. It has launched many successes – the share issues of CyberArk on NASDAQ and the exit of Cy Active are but two examples.

Today, JVP has an full technology agreement with Alibaba, the Chinese giant’s first investment in Israel. And the Hebrew press is now reporting that Indian’s wealthiest person, Mukesh Ambani, intends to set up a US$30 million hub with JVP, which will concentrate on the ‘internet of things’. Unsurprisingly, Geektime voted JVP the best venture fund in Israel for 2016.

For years, Jerusalem was a back water city. The economy was supported by government offices and religious tourism. Those elements still feature. However, the Jerusalem of 2016 has taken a giant step forward into the modern world, a change that conservatives will find near impossible to reverse and a dynamic that global investors would be advised to understand urgently.

Two great tips for a manager faced by the impossible

1 March 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

We all know the situation. Sometimes, when faced by a request or a challenge, we say “no, I can’t”. And in our heads, we determinedly tell ourselves “that’s impossible”. My clients often let out such responses to me, when I challenge them as their business mentor.

Just take a moment to understand that word “impossible”. Look at it from two levels; physical and …let us call it, logistical.

Starting with the physical aspect, we know today that even some of the most severe bodily restrictions have not stopped people running and jumping for Olympic gold. My favourite story is portrayed in this link of a young ballet dancer.

On a more practical level, many of us claim that we cannot draw. And yet, look how a fifteen minute ‘TED talk’ showed that such protests are complete nonsense. If you follow the presenter very carefully, all he is saying is “BREAK DOWN THE PROBLEM INTO SMALL STAGES”. Just start somewhere and then carry on in a modular manner.

But what happens when you shriek ‘impossible’, but you cannot state why? No full, credible, serious explanation is offered. You know what you want to do, but you feel you cannot get there…….for some undefined reason. In that case, what are the options?

Some blogs refer to that ‘epiphanal moment’, when we wake up. We realise that we are no longer losers, but can let our own actions determine our own future. Very true, and I have been there myself. I remember being in a lecture, when my peers decried a specific business model, which I thought could be effective. I simply decided on the spot that I had to ignore their advice and go-for-it. I have not looked back since.

But what happens if you cannot see what needs to be done? Many of us can identify troublesome issues. We know what is going wrong. However, we cannot move beyond that point. It is impossible….or it seems that way.

Quite often, what has happened is that we have bottled up our thoughts. We keep our worries to ourselves. We have been taught that we should not burden others with our problems. It is not fair. Anyway it is a sign of weakness, correct? Nonsense!

BY SHARING YOUR CONCERNS, VERBALLY, you are giving yourself access to the solutions of others, which you simply may not know about. IN parallel, physiologically, you are actually allowing your body to relax. This can only be beneficial.

Now let me explain how I know these suggestion are practical and do succeed. I write as the asthmatic, who was one of the worst at sports during my school days – many, many years ago. Yet about a decade back, I started to run on a treadmill. From two kilometers in the gym, I found myself running 10km outside and with yet more left in the tank. I pursued, constantly adding at little more distance each time.

Three months ago, it was suggested that I run a half-marathon. I said that I could not, but I had to justify my words, verbally. I could not. I was lost for an excuse. And so last Friday I clocked 21.1km in just over two hours in an event in Tel Aviv.

As they say, everything is impossible until you have done it.

Tel Aviv – ahead of the conflict and beyond the start ups

28 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Spend four days, consecutively, in Tel Aviv? I cannot remember the last time I did that. After all, for me and many people in the Jerusalem area, when we think of the city, we conjure up visions of a dense humidity, traffic aims and no where to park, claustrophobic high rise buildings, and a boundary lines that seems to take over other towns.

Wrong!

The problem starts with how people describe the city of Tel Aviv. They relate to it in terms that do not have that much importance to many of us outsiders. For example, Tel Aviv has been called the ‘start up capital’ of the start up nation. The first Arab-Israel start up school is to be launched near there. Flattering. Impressive. But this is not necessarily a reason to visit.

Alternatively, Tel Aviv is often referred to as possibly the most openly gay society in the world. In a region of geo-political conflict, such pluralism is a rare phenomenon and which must be treasured. But again, this is not something that advertises the cities best features for those outside that spectrum.

Yes, there is a better way to describe Tel Aviv. Simply look at its people and what they are creating.

Wednesday afternoon, I had two meetings in the heart of the city’s financial district. My young hosts were located in brand new structures, which had been carefully placed between old buildings that are protected by local by-laws. This is not just about protecting the past. This policy shows the next generation where they have come from and how they should not forget the lessons of the founders of the state.

On Thursday evening, I found a wonderful restaurant called LaSagna. Ostensibly, this sounds like another expensive way to serve up gluggy ravioli. Wrong again! I had one heck of a minestrone soup, followed by a wonderful plate of fresh paste.

The atmosphere was warm and friendly – a family business. The manager found my wife and I a quiet table, even though they were packed on an out-of-season February evening. And the talk? Yes, I deliberately listened to the conversation of others. Be it in Hebrew, English or Italian, most were discussing how they were going to get to the starting line of the Tel Aviv marathon. (This is to be held the following day.)

I too was in town for the run. But I had found myself a great location to stay in. I urge people very strongly to check out Alexander’s Hotel, relatively new and just next to the old ‘port area’. It is ideally situated for the local tourist, visitors from overseas or travelling business folk. And, it is literally a couple of minutes walk from the beach.

The hotel can be found in a quiet street. The staff appear to be locals and they go out of the way to be friendly. The décor is modern, yet relaxing. They kindly provide fruit and wine in the lobby, an unexpected treat. It was a delight to spend a couple of nights there.

As for the marathon, about 40,000 people of all backgrounds, including many from overseas, turned the streets of the Israeli metropolis into a sea of red and green tea shirts. It was a brilliant celebration of getting together, whatever you age, religion or colour. But more of that in my next blog.

For now, I just ask you to remember. Tel Aviv is open for business, to all, and its fun!.

Israeli high-tech does it again – 3 new champions

24 February 2016
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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

In a recent post, I described why how and why the Israeli economy is still advancing its strengths in human capital. The concept of the ‘start up nation’ is still very much in play. This week, we have seen three examples of that innovation come to the fore.

The big news is Oracle’s purchase of Ravello for a suggested US$500 million. Behind the numbers, what is important to recall is that the founders of Ravello, Rami Tamir and Benny Schneider, have five previous exits between them to their names. The total value of these deals is estimated at around at over US$600 million during the period 1999 to 2012.

What makes them special? They learnt at the Technion University in Haifa. They are known to be great team players. They are known to be open to critique. They do not claim to have all the answers but look to push the boundaries in the quest to discover more.

A secondary item has featured Nadav Tsafir, former head of the Israeli army’s legendary 8200 unit. His Team 8 Group has already raised US$18 million to sink into local cyber technology. They have just added a further US$23 million to their war chest. The backers include AT&T, Nokia, and finance houses from Japan and Singapore. Not bad for a company that has barely been around for 18 months.

And then there is the little known company called Lightricks from Jerusalem. Somewhat under the radar of press, they have developed two leading applications, Facetune and Enlight, among the most successful paid apps in the world. Three years on and they are looking to recruit a further 40 developers, even offering to pay US$25,000 if people will relocate to Jerusalem.

Whose next? Difficult to say. Last week, I met with one most creative lady in Jerusalem who came up with a brilliant, while skiing down a slope in Italy. Watch this space!

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