Category Archives: Pro Experts

Hawke’s Bay’s leading professional service advisers & leaders

Is your business performance meeting your plan?

Posted on by
Reply

While completing a business plan clarifies and outlines your goals and objectives for the future, the key to making sure you are achieving your goals is to effectively measure and monitor your performance. We like to think all Businesses, regardless of size or industry have a Business Plan (and if you don’t then now is a great time to work on one!).

Following the disruptions experienced earlier this year, if you haven’t already then now is an ideal time to review this plan to ensure that it is still fit for purpose.

Review your Balance Sheet and Profit and Loss

By reviewing your balance sheet, you are provided with a clear overview of the current position of your business including the value of your assets and how much you owe. Consideration of your profit and loss will identify if your product/service pricing and sale volumes are providing enough gross profit to cover your overheads and provide a return to owners. This also allows you to calculate your breakeven point which is especially important in the current environment of inflation and interest rate increases. This review will also give you insight into what trading results you need to generate to reach the goals outlined in your business plan or provide you with the information necessary to alter your goals to better suit your current economic market/situation.

Utilise cashflow and forecast reports effectively Used correctly this is a great tool for breaking down exactly how you will achieve your financial business goals and will act as a check to ensure you are staying on track. In terms of the financial aspects of your business, you should be reporting regularly – for some businesses this needs to be daily, or weekly but at a minimum it should be monthly. Compare current results with your year-to-date data and review these figures against the business budget as well as previous years comparative figures, highlighting any variances or unexpected fluctuations for further investigation. Following the cyclone in February and the recession we are now officially in; we are seeing more and more businesses seeking guidance on how to rectify or account for the ‘variances’ so many are experiencing – and a cashflow forecast will allow for this.

Make Time to Reassess

Ensure you schedule regular timeslots to review the above. In our experience, we find that business owners rate strategy as hugely important (even more so in the current economic climate) but often don’t have the time, skills, or knowledge to implement meaningful strategies in their own businesses. This often stems from business owners being subject
to the ‘tyranny of urgent’ – meaning everyday tasks often take precedence over the more valuable and highly necessary big-picture requirement of taking stock of the strategic direction of the business.

Business success and future stability depends on the effective measurement and management of critical resources along with financial metrics. Once you have an overview of the financial position of your business, ask yourself how important are your different key resources to achieving your overall business goals? How strong are your existing resources and how can you possibly use them more effectively?

If your existing resources are meeting your needs, what gaps do you need to fill? Similarly, what resources have you previously relied on that are no longer required or meeting their objective? Have you considered your overall operating landscape, competitive position, benchmarks, and any market data? While these questions can seem daunting, they can often ensure that you stop and take the time to become aware of possible opportunities within your industry that you may not have otherwise been aware of.

Ultimately, this suggested process of measuring and monitoring will not only give you the necessary tools to keep on track with achieving your business goals but will more importantly allow you compete in this challenging marketplace.

About the author: Emma Cook is an Associate with BDO. She has extensive experience assisting both small and medium sized entities with a wide range of advisory services. BDO Hawke’s Bay are Chartered Accountants and Business Advisors. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz

Addressing staffing gaps with a virtual CFO

Posted on by
Reply

Staffing has been a major talking point for many of our clients in the past few months, and we know businesses right across Hawke’s Bay are having similar issues. The market is tough, and businesses are having to manage competing priorities for their time and resources.

A permanent staff member might not be a priority, or the scope of the role may not require someone permanently – or you might just be struggling to find the right person. That’s where a virtual Chief Financial Officer (CFO) or temporary resource can help.

What is a virtual CFO?

When business owners think virtual CFO, they often envision someone operating at a strategic level, directing key financial matters. And while the virtual CFO role does allow for this, the scope covered by this role can vary from business to business or project to project. A virtual CFO allows organisations to get the benefits of a CFO and dedicated finance department without the commitment of permanently employing someone in this role. They can act as a trusted partner and sounding board for key business decisions or simply keep your finance department on track. One of the key benefits of a virtual CFO is that the role is fully scalable and can be specifically customised to meet the current needs of your business. No matter what stage of business you’re at, how big your operation is, or how long you need support for, a virtual CFO solution can be tailored to you.

When might you use a virtual CFO As an interim recruitment solution

The Hawke’s Bay market is tough when it comes to attracting top talent, which means businesses can often have gaps between hires. Recruitment for a CFO role can present challenges for organisations that need day-to-day business support. A virtual CFO can address this and plug the gaps while you’re searching for the right person.

When budgets are tight

The current economic climate means many businesses just don’t have the budget to hire a full-time, permanent CFO. With a virtual CFO, you get the security and expertise of a national network along with the local relationship and insights that come with engaging a Hawke’s Bay adviser.

Experienced experts can pull from a wide range of resources that other businesses and contractors may not have on hand, from business specialists to strategic and financial analysis tools. Our scalability and flexibility mean we can take on everything from a few days’ worth of work through to much larger-scale projects, with the ability to extend should you need more support. The flexibility also extends to the level of individuals available to undergo each stage of the project, from data entry through to analysis, reporting and implementation. We can work within a pre-agreed budget or scope of work, so you’ll always know what you’re getting.

On a project basis We know not every organisation wants or needs a fulltime CFO, but there are times during the year when that level of expertise is required. You can engage a virtual CFO for specific projects or periods of time. We all know that following Cyclone Gabrielle, many businesses were struggling to collate reports required for insurance claims or were overwhelmed with trying to re-forecast their cashflow or refinance.

It is these instances that we see the virtual CFO service become a lifeline for businesses to ensure that they are best placed and informed when forward planning.

About the author: Lisa Townshend is a Business Advisory Partner with BDO. She has extensive experience assisting both small and medium sized entities with a wide range of advisory services. BDO Hawke’s Bay are Chartered Accountants and Business Advisors. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz

Semiconductors: The AI beneficiary

Posted on by
Reply

Artificial Intelligence, or AI, is a global fixation – one that has driven the Nasdaq to outperform every other major world equity index this year.

AI is having its moment, and a knock-on effect of its popularity is that semiconductor companies have reemerged in the spotlight as one of AI’s crucial initial beneficiaries.

Semiconductors are the elements that conduct electricity voltages between that of typical conductors and insulators. These electrification properties enable semiconductors to be used in computers and other electronics to control the flow of electricity, store memory and convert energy.

This isn’t the first time semiconductors have been popularised recently. Pandemic supply constraints and lifestyle adjustments like working from home drove demand in the early years of the COVID-19 pandemic, but there was a brief period of quiet where they weren’t performing as well.

The factors that caused this initial demand have not gone away, but the demand for AI is eclipsing any other driver of semiconductor use.

So, the Nasdaq is benefiting from this upward swing, but why exactly are semiconductor companies benefiting so much from the AI boom?

Chips – Logic and memory:

To understand why semiconductors are benefiting from AI’s popularity,
it’s important to understand the role the materials have played in the advancement of technology. Computer chips are made from semiconductors and are used for calculating and storing data.

In order for AI to function, it too relies on the use of chips. The two major types of chips are logic and memory.

Logic chips, sometimes referred to as microprocessors, are the ‘brains’ of electronic devices. In this context, logic implies ‘processing’, and the chips perform instructions and tasks that the device needs to execute. Every electronic device needs a storage unit, and memory chips serve this purpose.

The process of manufacturing semiconductor chips is one of the most complex engineering and scientific feats that humans have achieved. To the untrained eye, this process seems like pure magic.

The process begins with the design of the chip, where engineers use complex software to design the circuit of transistors. Post design completion, the blueprint is sent to a foundry (a metal castings factory) for manufacturing. The ‘magic’ of semiconductors lies in their ability to scale and continually get smaller over time.

In 1965, businessman and engineer Gordon Moore proposed that the number of components on a semiconductor would double every year.

In 1975 he revised his forecast that the rate would double every two years. Since then, his prediction held, and has widely become known as Moore’s law. Some manufacturers have made their chips smaller and more efficient than others. In the world of chips, the leading-edge is a term used to describe the smallest and fastest chips produced.

Companies with the highest profit margins are the leaders of the leading-edge space, as they have access to large capital investment that in turn funds research and development costs. As the number and type of devices worldwide seems to exponentially grow, so does demand for these chips. Data centre servers, smartphones and other advanced computing devices account for a large amount of this increased demand.

AI is the newest driver of this demand.

Chip hungry Artificial Intelligence:

Artificial Intelligence models including OpenAI’s ChatGPT require vast amounts of computation, memory, and data to run.

Having always experienced high demand, leading-edge chips regularly eclipse analyst estimates. Leading-edge graphics processing units (GPUs) are used to train the world’s most advanced AI models, and as AI has developed at a significant speed, so has the demand for GPUs. The newest generation of chips are more economical than previous generations, meaning training these models is more efficient per dollar spent.

For AI to operate effectively it needs to run off chips that are efficient and economically viable. For investors looking for semiconductor-related investments they can look towards companies that are tied to leading-edge semiconductors.

This includes Nvidia and AMD in chip design, ASML and KLA Corp who provide machines that measure chips, and TSMC which manufactures chips as a contract manufacturer. Predictions for the future of the semiconductor industry are bright, with McKinsey and Company assessing a trillion-dollar valuation for the industry by 2030.

Of all the recent winners that have emerged from the AI boom – tech giants, cloud titans, even cyber-criminals – chipmakers may just be the biggest.

Tobias Taylor is Director, Wealth Management Adviser at Jarden.

The information and commentary in this article are provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. It is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision or taking any action. Jarden Securities Limited is an NZX Firm. A financial advice provider disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement

The beauty of a well-run meeting

Posted on by
Reply

Well-run meetings are an amazing thing but when poorly executed, they can be extremely frustrating. Meetings are a key touchpoint for our teams, and they provide an overt and visual display of our leadership. However, few people feel they are time well spent.

Meetings are often poorly planned and ineffective and get in the way of work done. Research suggests that 50 percent of meetings are unnecessary, so let’s look at how to get the most out of them.

The value of the meeting

Meetings are indispensable to both organisational and team success. Research shows organisations that hold meetings outperform those that don’t, and leadership teams that hold them in times of challenges or change notably outperform those that don’t. Well-run meetings increase collaboration and psychological safety. They are also correlated with general work satisfaction (likewise poor ones with dissatisfaction).

This isn’t about banning them – it’s about doing them better.

Is a meeting needed?

The first step is to decide if a meeting is needed. It is often an automatic reflex to accept a meeting invite without first checking its relevance to us. Reportedly, the worst meetings are those that purely exist to disseminate information. Rather, an email, shared documents or webinar/video should be used for status updates. Meetings should be about resolution, brainstorming, decision-making and approvals or creating ideas. Purpose Each meeting needs a purpose and outcome statement. Part of the role of leading is to let participants know why they are there – Why are you having the meeting and what do you want to achieve before attendees leave?

The purpose should refer to a result, for example, “Business Review” as a title doesn’t focus on outcomes. Add a verb/action word to the purpose – “make a decision…” or “develop a plan of action…” or “decide top three actions for …”.

Are the right people in the room?

It is suggested that 10-15% of meeting participants are not usually necessary. When considering the purpose and desired outcome, ask yourself, who needs to attend to deliver on this? You’ll save time and improve meeting performance if you only include people who need to attend. From there, a balanced contribution from all participants tends to correlate with better performance – if a topic only relates to two people, take it out of the meeting.

Is the timeframe right?

Parkinson’s Law states that work expands to the time allotted for.

If you schedule an hour, your meeting will comfortably swell out to the hour. Shortening meetings will often allow for more focused and productive meetings. This is why we have seen the rise of the 10-minute huddle, the 18-minute team meeting and 50-minute meeting (instead of the standard one hour).

Planning is key

All eyes are on you as the meeting lead and the team will clearly see if you are not prepared (including use of technology). Be purposeful, thinking beforehand about what you want to accomplish with your agenda and being careful of covering too many things. Prior assignment of certain tasks such as note-taking, chairing, sorting visuals etc is helpful. Having documents ready (not preparing them on the day!) and sending out any preparatory information helps keep things moving. Preparing questions for team engagement and active input is also useful.

The meeting

Referring to your purpose is a powerful way to calibrate the first 40 seconds: “The purpose of today’s meeting is to…”. From there, the fundamental focus is to drive discussion that leads to an action or decision. You may opt to start with a connecting chit-chat, especially if you have decided that connection is a purpose. Celebrating wins is also useful to set the tone of the meeting – it’s easy to go to the problem and miss an opportunity to allow some positive energy in the room. Thereafter you can delve into your purpose and agenda. Outcomes and ownership should be a priority, summarising all agreed-upon actions in the final 10 minutes and ensuring these are recorded. Michael Hyatt of No-Fail Meetings promotes a meeting format of AEIO – Achievement, Expectations, Issues, Outcomes, which can be useful to follow. Finally, start and end on time.

Engaging participants

The leader is responsible for creating active engagement. Tricks can include keeping meetings small (four to six participants), using open-ended questions, co-creating using flipcharts and whiteboards, engaging different senses using colour, variety and movement (sitting still moves us to a passive state), and thinking about room layout: Make the room match the process i.e. theatre vs round table. Hyatt suggests a useful strategy for leaders is to “hold your counsel” – which requires us to pause and stay quiet to get the group sharing before a leader weighs in. Distractions such as side conversations, phones and laptops should be managed from the outset by setting clear expectations. Lastly, stay on topic. As a final thought, it is good to periodically check in with your team as to how meetings are going and what would make them better. Getting your meetings right can be a work in progress, but it’s worth the time and effort.

For more advice like this, contact your local Baker Tilly Staples Rodway HR leadership specialist.

Benefits of buying an established business

Posted on by
Reply

Buying an existing business is like running a marathon which has already been half-run for you by another athlete!

Starting a business can be a difficult and risky endeavour. However buying an established business can provide the new owner with a much more secure and viable option.

The key reasons for buying an existing enterprise as opposed from starting from scratch are;

Immediate Cash Flow

A business that is already operational will be generating cash flow from day one. Knowing that the business will be generating an income for paying off debt or fund future growth provides piece-of-mind. It allows buyers to keep their capital reserves intact whereas start-up are less certain.

Saves Time

It can take a long time to launch a new business especially when it comes to setting up the necessary infrastructure, systems and processes. By purchasing an existing business you may skip this phase and get straight to running and growing the business.

Reduces Risks

Purchasing an existing business lowers the risks associated with a start-up venture. An existing company will have a track record of success that can be used to forecast future results. Furthermore an existing business will have well established systems and process in place, ensuring a smooth transition for the new owner.

Cost Savings

Similar to saving time, an established business saves you money as it already has the equipment, stock, staff and processes in place. An existing business can save you the cost of setting up all the infrastructure required to operate the business. An existing business may have already negotiated bulk supply agreements which help save on future costs.

Access to IP, Industry Knowledge and Expertise

When you buy an established business, you gain access to the current owner’s staff, industry knowledge, intellectual property and expertise. This can be extremely important because it can help you make better decisions, avoid common mistakes and help grow your business more effectively.

Established Relationships

An established business will typically have existing relationships with customers and suppliers, which can save you time and money developing these relations from scratch. These connections can also be used to negotiate better prices, terms, delivery dates and conditions.

Experienced Staff

A major benefit of purchasing a business is that it frequently comes with an experienced and knowledgeable team. The cost, time and stresses of building a team from the ground up can be immense. Additionally the current team may have valuable industry knowledge and relationships that can assist you in expanding the business.

Easier to Obtain Finance

It is easier to obtain finance for established businesses as lenders will have a better understanding of the business’s performance and the future potential of the business. A well-established company will have a track record of success that can be used to secure funding from banks, investors, or other lenders.

Established Brand

Established businesses come with brand recognition which has been created over time. A long trading history and a strong reputation enhances brand recognition. Successful businesses are likely to remain successful. The chances of succeeding and accelerating the growth of an existing business are much higher, over starting a business from scratch. There are a multitude of business for sale and on the market right now. Check some out.

Exploring the opportunities and risks of AI in business from a legal perspective

Posted on by
Reply

Artificial Intelligence (AI) has emerged as a transformative force in the business world, offering newfound opportunities for efficiency, innovation, and competitive advantage. However, along with these opportunities come legal implications and risks that must be carefully navigated.

AI algorithms can process vast amounts of data quickly and accurately, helping businesses identify trends, predict future outcomes, and make informed choices. This can lead to a more transparent and defensible decision-making processes.

AI technologies can automate routine tasks and processes, reducing the need for human labour and, consequently, labour-related costs. This cost reduction can translate into higher profits and increased competitiveness.

However, it’s crucial to consider the legal implications of workforce changes, such as potential labour disputes and employment law compliance. How often have you been on a webpage when a virtual assistant asks if there is anything they can help with? AI-powered chatbots and virtual assistants can provide round-the-clock customer support, enhancing the overall customer experience.

Moreover, AI-driven personalization can tailor products and services to individual customer preferences, boosting customer satisfaction and loyalty. Before releasing this functionality on your website, it is crucial to ensure the privacy and security of customer data remains paramount. Legal frameworks, such as the General Data Protection Regulation (GDPR) in Europe, require strict adherence to data protection principles. Failure to comply with these regulations can lead to significant fines and reputational damage.

The update to the Privacy Act in 2020 brought NZ law slightly closer to the European framework, and there are now 13 privacy principals to comply with. AI can help businesses identify and protect their intellectual property more effectively.

Machine learning algorithms can monitor the internet for potential trademark infringements, patent violations and can assist with copyright management and content protection. While AI can help protect intellectual property, it can also pose challenges related to patent eligibility. Courts around the world are still grappling with the question of whether AI-generated inventions can be patented, and these legal uncertainties can impact businesses’ innovation strategies.

For the benefit of many local business in the agricultural and horticultural sector, AI-powered predictive maintenance systems can monitor machinery and equipment in real-time, anticipating maintenance needs and preventing costly breakdowns. While this can result in substantial cost savings, businesses must consider health and safety compliance in the event of a malfunction or failure. AI applications in regulated industries must adhere to strict requirements.

Ensuring compliance with health and safety regulations or consumer protection laws, is essential to avoid legal penalties and reputational damage. AI algorithms are only as good as the data they are trained on, and biased data can result in discriminatory outcomes. Businesses that deploy AI systems must be vigilant in identifying and mitigating bias particularly in areas like hiring, lending, and criminal justice.

There have been many instances of AI bias around the globe – Amazon’s recruitment algorithm reflected a male dominant workforce; Twitter’s algorithm favoured white faces over all others when cropping pictures and closer to home the NZ Police decided to stop the use of their road policing algorithm after being warned against the system by an expert panel.

Determining liability in cases involving AI can be challenging. If an AI makes a faulty decision that causes harm, who is responsible—the developer, the user, or the AI itself? As is the case with many innovations, laws and regulations are often made reactively. AI presents a world of opportunities for businesses however, these opportunities are accompanied by legal risks and challenges that cannot be ignored.

To harness the full potential of AI while mitigating legal risks, businesses must adopt a proactive approach, and in this respect legal expertise is indispensable. Collaborations between legal professionals and AI experts are essential to navigate the complex legal terrain and unlock the full potential of AI while ensuring ethical and legal compliance.

As AI continues to evolve, businesses that embrace it responsibly and proactively to address legal considerations will be better positioned to thrive in the digital age, reaping the rewards of innovation while safeguarding against potential legal pitfalls.

About Amy Cowan – Amy has broad experience in property law, with a focus on subdivisions, property developments and commercial and residential conveyancing. She is a Conveyancing Practitioner and Registered Legal Executive and has extensive experience advising on Lending and Regulated Financial Services, and has provided high level advice to lenders, borrowers, and guarantors in all types of commercial and private transactions. Amy also serves as an Executive Board Member for the NZ Society of Conveyancers, a member of the Standards Committee, and an associate member of the NZ Law Society. Ph: 06 872 8210
Email: amy@bramwellbate.co.nz

Valuing Cyclone Recovery

Posted on by
Reply

The 14th of February 2023 will go down in local history as one of the worst natural disasters to hit our region as Hawke’s Bay endured the fury of Cyclone Gabrielle.

The unprecedented level of devastation and loss faced by the community in the aftermath has been immense. The primary focus of this article is to summarise the process now in place for owners of Category 3 properties regarding the Voluntary Buy Out Policy (VBOP) adopted by both Napier City Council (NCC) and Hastings District Council (HDC).

In May 2023, the Government announced three risk categories for Cyclone affected land with the most ‘at risk’ areas referred to as Category 3 and being areas “not safe to live in because of the unacceptable risk of future flooding and loss of life”.

The HB Regional Council then carried out the process of assessing all flood affected land, applying Category 3 status to land where “Future severe weather event risk cannot be sufficiently mitigated. In some cases, some current land uses may remain acceptable, while for others there is an intolerable risk of injury or death.”

This policy does not set a precedence about how future natural disasters will be dealt with but is in recognition by the councils of the substantial impact that the Cyclone has had on people’s lives and the risk associated with people continuing to live in these Category 3 areas. The Councils acknowledge that there is significant loss and damage beyond what is covered in the policy but is governed by its scope which is limited by the terms of agreement with the Crown.

Some of the land classed at Category 3 in HDC is Whenua Māori and this Policy is not intended to apply to Whenua Māori as the Crown has undertaken to consult directly with affected mana whenua and tangata whenua. The VBOP is pertinent to landowners of Category 3 assessed land.

Those eligible are owners where property is ‘Residential Property’ (land on which one or more dwelling was located on the land, two hectares or less in size) or a ‘Mixed-Use Property’ (land on which one or more dwelling was located and is greater than two hectares regardless of whether activities other than residential were occurring on the land at that date) and based on a retrospective market value as at 13 February 2023.

The owners must sign and adhere to the preliminary agreement and the policy is based on TWO primary bases, a Property Purchase Offer, and a Residential Relocation Offer. Owners of Residential property can elect to choose either offer at the initial meeting or at the time of the Council’s offer, however, owners of Mixed-Use properties are only eligible for the Residential Relocation Offer.

What is a Property Purchase Offer – the purchase by Council of the Residential Property.

If the property is not insured, the payment will be for the market value of the property less a deduction equivalent to what would have been payable under the earthquake Commission Act for damage to the land had it been insured. If the property is insured payment will be for market value less any insurance proceeds that have not been spent. If owners retain the insurance proceeds related to the dwelling, payment shall be made for the market value of the land less any payment under the Earthquake Commission Act 1993 for damage to the land that has not been spent, in good faith, on repairs to the land.

What is the Residential Relocation Offer – the purchase by Council of any dwellings/improvements on the property (including any necessary rights to undertake demolition and/or, removal of the dwelling and residential improvements, and site reinstatement related to the demolition (including removal of septic tanks and capping
of wells), but whereby the Owner can retain ownership of the land with a covenant in gross in favour or similar legal instruments registered on the Title ensuring:

No residential activity may occur within that part of the property categorised as Category 3.

The owner shall not oppose or otherwise participate in or fund any third party to participate in any regional or district plan change or variation, or similar proposal, which seeks to remove or restrict the ability to undertake residential activity within the locality of the property. Under this offer the owners will receive a Relocation Grant which is a payment to the Owner in an amount that represents the difference in the market value of the land with and without the right to rebuild a dwelling on Category 3 land.

Where the property is not insured, payment is for the market value of the dwelling and residential Improvements. If the property is insured owners can elect for a payment that will be for market value less any insurance proceeds that have not been spent or to retain the insurance proceeds and take up the Relocation Grant for which they are eligible.

The Valuation Process
Councils’ will require a retrospective market valuation from a Registered Valuer. Owners are also eligible for reimbursement of their own valuation and legal advice up to a maximum of $5,000 and Councils will base its voluntary offer on the valuation advice received.

The Owner’s valuation report will only be reimbursed up until the time an offer is made by Council and the Owner cannot progress to the Offer stage without a Council Commissioned valuation. In this instance Williams’ Harvey has made the decision not to sit on the Council panel but to act for Owners seeking their own independent valuation advice.

The full policy document is publicly available online on Councils’ websites and describes in detail the process, special circumstances and disputes process available to owners.

Say Goodbye to Passwords: Welcome the Age of Passkeys!

Posted on by
Reply

2024 marks the beginning of a new era, bidding farewell to an old friend – the humble password – and embracing passkeys as the innovative gatekeeper of our digital security. Say goodbye to the days of cumbersome passwords and welcome a secure, convenient, and seamless login experience.

For years, passwords have played a vital role in safeguarding our digital identities and protecting our personal details, financial transactions, and other digital assets. However, as cyber threats have evolved, passwords alone are no longer sufficient.

Based on the increasing ease in breaking passwords (or stealing them with usernames), the New Zealand Information Security Manual (NZISM), the government security rulebook, recommends a complex password length of ten characters, and Australia’s counterpart, the AISM, recommends sixteen characters. This increased measure drove businesses and individual users to subscribe to password managers in order to create and organise passwords for us.

However, not all users rely on password managers. Multifactor Authentication (MFA) lets us use our common eight-digit password, which is more secure but adds an extra step and, as a business owner, can cost you money. Enter passkeys – dynamically generated authentication keys that revolutionise the concept of password cracking.
With the rise of remote work and digital banking, we need robust, user-friendly security. Passkeys address both concerns, providing enhanced security without the inconvenience of manual password management. You are probably using it already without even recognising the term. Using passkeys is straightforward; your fingerprint, facial recognition, PIN or pattern unlocks access securely. Unlike passwords, there’s no need to memorise or write them down, eliminating common security risks.

All of the work is done in the background using private and public key cryptography. For example, the website you are visiting sends an encrypted challenge to your device
(computer, tablet, or phone) where you scan your face, fingerprint, or PIN, which the private key decrypts and sends a response back to the website for verification. If there’s a match, you’re in. It’s actually more complicated than that, but this is what you see.

You may have seen this the first time you signed into Netflix or another application using QR codes on Smart TVs. If you have a Netflix account, for example, and you try to sign into it on a TV, you are presented with a QR code to scan using your smartphone to authenticate your account. You may also be using Apple iCloud Keychain or Google passkeys. All businesses, especially those in e-commerce, will see a number of benefits from adopting passkeys, including higher login success, reduced drop-off rates, increased conversion rates, and reduced costs of separate two-factor authentication.

As we enter the new year, we will see a greater movement to passkeys – passwords have served us well, but as we evolve, so should our security measures. You can start your journey away from passwords, making your users’ digital lives easier and more secure. Welcome to the era of passkeys!

How medical insurance can support worker productivity

Posted on by
Reply

In July 2023, it was reported in the media that many patients were waiting up to a year for basic medical procedures at Hawke’s Bay Hospital when the target wait is six weeks. These procedures included ultrasound and CT scans, MRI’s and steroid injections.

The wait to get a routine examination for these patients was one of the factors (along with workforce shortages, unsuitable spaces and ageing equipment) that led to the hospital’s radiology department having its accreditation suspended.

On top of this are the wait times for surgery. In January 2022 there were 2,487 people across the country left hanging on a surgical wait list for more than a year. By January 2023, that number increased to 6,361 people.

The impact of unwell staff on productivity If you have staff needing medical care, it can have a major impact on their ability to work effectively, especially if they are in pain or incapacitated. Ultimately this can roll on to your workplace productivity. One of the things that you can do to support your people’s wellbeing and get them back to work quicker is to provide them with private medical insurance.

Not only does medical insurance encourage your employees to seek medical treatment earlier, it means that because they can be seen privately they are likely to be diagnosed and treated much quicker. This is not only good for their physical health but their mental wellbeing.

Research shows that employers with workplace health programmes that improve employee health by reducing, preventing or controlling diseases can realise potential cost savings. This can be measured against factors such as –

■ Absenteeism among employees due to illness or injury.

■ Reduced overtime to cover absent employees.

■ Costs to train replacement employees.

Healthier employees contribute to a safer work environment

Staff who are in general good health also contribute to a safer workplace as they are more likely to have improved physical, mental, and emotional health which enhances stamina, concentration, and focus. Mental wellbeing in particular is a concern when it comes to a safe working environment, with many reports showing a decline in Kiwi’s mental health. Employers not only have an ethical responsibility when it comes to mental health, they also have obligations to look after the physical and mental health and wellbeing of their staff under the 2015 Health and Safety at Work Act. This of course requires workplaces to protect against physical harm (including fatigue) as well as psychological harm. Many medical insurers offer benefits to support mental wellbeing under their policies which help employers to ensure that their people have access to the right support.

Keep your existing people healthy and attract new staff

It is no surprise that organisations that offer medical insurance are more highly regarded by prospective employees
– especially if medical benefits can be extended to their spouse or family members. Recruitment company Madison recently highlighted health and wellbeing support as the number two benefit that ‘people actually care about.’ Health insurance was specifically mentioned as ‘one of the best things you can offer.’ This helps explain why the growth in membership at New Zealand’s largest health insurer, Southern Cross, is the highest it has been in 30-years – with 20,000 new members joining in the last year alone. The organisation has said that some of this growth was coming from businesses and organisations wanting to attract and retain people. There is no better time to consider a medical insurance plan for your people than now. The ICIB Brokerweb team is highly experienced in finding the right plan for your organisation. You can drop our Life and Health team a line on insurance@icib.co.nz, call us on 06 870 6567 or visit icib.co.nz to find out more.

Cloud networks without the headache

Posted on by
Reply

With the emergence of cloud applications and modern mobile devices driving the necessity for ‘anywhere access’, companies across New Zealand are recognising the shortcomings of traditional corporate networks.

A move to virtualised cloud networks matching these applications and use-case scenarios offers multiple advantages – but making the move can be a daunting prospect, with uncertainty around management, configuration, and day-to-day operations.

A robust Software Defined WAN solution makes virtual cloud networks easy and efficient. That’s been confirmed by Liquorland and Radius Care, both of which today enjoy trouble-free connectivity for every employee. Based on world-class technology from Cisco Meraki, secure connectivity and network intelligence is provided and managed from a single cloud-first platform.

As a ‘virtual network’, the solution grows to accurately match requirements over time: when new branches are added, or new people join, the network is adaptable to these changes. Uniting all devices on a single network, including smart cameras, sensors, and anything else connected, all reported in a single online dashboard.

Radius Care: Rest home security assured Rest home and hospital care specialist

Radius Care has 24 facilities around New Zealand with 1800 staff and 1700 residents. With technology becoming more important in the aged care sector, including residents using their own smart devices, the organisation was facing difficulty with visibility across its networks while concerns around security.

“Prior to putting in this solution, we had issues knowing what devices were connected, and questions around security – and we take security extremely seriously,” confirms Information Systems Manager Kayleen Currie.

“We selected this particular solution and now have way more visibility on our devices and all traffic going through our network. Another benefit is the security and stability; then a major plus is the cost benefits, with the new solution being cheaper and more reliable than our previous solution,” she explains.

Liquorland: Branch connectivity across the motu

The suitability of the same solution for organisations with many branches and multiple users is clear in Liquorland’s implementation of this service.

With 145 stores nationwide processing 9 million transactions per year over its network, it’s clear why this company needs unimpeachable connectivity. Brett O’Hanlon, Finance and IT Manager, says the commercial drivers when choosing a new system started with cost. “In addition, we wanted a robust solution in store that wouldn’t require any intervention from our support centre.

The solution is essentially a store in a box package and comes with a Cisco Meraki MX68 [Security and SD-WAN device] and Wireless Access Point that went into every store, with 4G failover.”

This meant setting up each of those 145 stores was easy – essentially a case of plugging in the preconfigured Cisco Meraki device and plugging in the broadband connection. From there, O’Hanlon says centralised management is very simple.

“The Meraki functionality makes it so easy. I can understand on my phone how all our stores are trading, with powerful dashboarding delivering a seamless experience for Liquorland. We’ve been really happy with how the Meraki solution has been provided.”

An end to support calls

Where previously the largest source of support requests once came from network issues, O’Hanlon says, “We now never talk about the network. And then there’s the reliability of the failover process [to 4G, if the fibre network goes down]. It’s seamless.” A better network also sets the scene for innovation, O’Hanlon explains. “We’ve evolved the services that we use out of network over time. We are learning more and more about what a better network can do for us; it doesn’t stop with putting in a really strong network, that is the foundation for building other solutions on top.”