Interview
Interview with Valérie Attia, President of Ellisphere
The Covid crisis will soon enter its 3rd year, how did Ellisphere react in this very particular context?
Several elements of the answer are necessary. The first was to allow teams to continue to work in optimal conditions. Telecommuting was therefore immediately reinforced and will be generalized as of March 2020. At the same time, it was also necessary to give employees new reference points in a very new work context for them.
The second point that seemed extremely important to us was to think about solutions that would be directly useful to our customers in a very particular period. The stakes were not necessarily the same for all of our clients, insofar as, suddenly, entire sectors of activity were shut down, totally or partially, and others were not. In this context, it quickly became clear to us that it was necessary to work on new indicators, as well as the collection of new types of information taking into account financial data specifically related to the crisis, such as the obtaining of State Guaranteed Loans, but also new information of an extra-financial type.
Finally, the third element of the answer to your question comes at the end of thefirst containment period. As early as the summer of 2020, we were very strongly solicited by our clients who were wondering about new ways of prospecting, at a time when the whole organization of commercial prospecting had been turned upside down in companies.
We therefore looked at which innovative solution on the market best met these new marketing and sales challenges. The one proposed by Sparklane, a B2B software publisher, caught our attention. In April 2021, we acquired Infotrade, which publishes Sparklane solutions. With this external growth operation, we have consolidated our position in the marketing solutions market, one of our three strategic businesses. This transaction opens up great opportunities for growth and innovation in a rapidly changing market.
In the face of the difficulties encountered by companies over the past two years, what will be the challenges of risk management in BtoB tomorrow?
First of all, I am convinced that one can no longer prospect properly without worrying about the solvency of one's future business partner. Furthermore, we can no longer talk about preventive management of customer or supplier risks without including new questions: what are the values and ethics of the partner? What is their commitment to corporate social responsibility (CSR)? And so on.
These questions are valid both in the context of entering into a relationship and in the management of existing customer and supplier portfolios. They are also asked by the company's partners, shareholders, investors, and even candidates in the context of recruitment campaigns; company employees are increasingly attentive and demanding on all CSR-related subjects.
For their preventive management of customer and supplier risks, BtoB companies therefore need more varied data, not necessarily more voluminous, but certainly more qualitative. Data that can also be used to feed new solutions that offer visibility beyond the short term on business partners.
New tools such as a business failure probability score that would cover longer periods?
Absolutely. In the context of supplier management, for example. A strategic supplier must be able to be evaluated over the long term, in two, three or five years. At the risk of facing a supply disruption that would jeopardize the very survival of the company.
Another example is in the management of its customer base, particularly in the leasing business, where service providers cannot be satisfied with an assessment of their customer's solvency after six months. Because the leasing solution, and in particular the equipment put in place, is there to last for several years.
So yes, it is absolutely necessary to develop new tools that allow our customers to work on the long term, and in full confidence with their business partners to ensure a sustainable development of their business. Standard tools, but also customizable tools, to meet the specificity of certain issues. This adaptability of tools is particularly true for scoring, as mentioned above.
The crisis has brought about profound changes. As such, haven't companies, particularly finance departments, returned to certain fundamentals?
Indeed, in the face of economic and health uncertainties, finance departments have had to refocus on fundamentals: bringing in cash faster, building up cash flow, but also paying suppliers on time, to preserve supply chains.
It is true that French companies have benefited from an exceptional system of aid put in place by the French government. I am thinking in particular of the State Guaranteed Loans which have enabled companies to get through this difficult period and perhaps prepare for the end of the crisis more serenely.
Another notable evolution is the acceleration of the digitalization of financial processes, but also of prospecting methods. The crisis has probably pushed many companies that were not yet fully in the era of digitalization to speed things up. They have finally achieved in six months what they would have done in five or ten years in a "normal" situation.
Over the last few years, many regulatory changes have targeted economic players, particularly in terms of CSR, echoing the new societal expectations of citizens. Do you think that these developments represent a major trend that will increase?
New regulations driven effectively by consumers, driven by the market and younger generations looking for jobs in more responsible companies.
So, of course, this is a fundamental trend. A trend that is accelerating with new regulations in sight, such as those on taxonomy or mandatory reporting, which will affect more smaller companies, well beyond the population of very large companies that are currently affected by many regulations.
Finally, new regulations mean new standards...
Last question, are you confident about the French entrepreneurial dynamic? There is a lot of support for companies, but we can also see the strong capacity of entrepreneurs to adapt and look for new ways to develop.
Pretty confident, yes. First of all, I think entrepreneurs are pretty inventive. Look at French Tech... We are at the 24th Unicorn declared in January 2022. Obviously, this creativity, this ability to innovate, to create value, goes far beyond just unicorns! Many companies have this strength.
The other cause for optimism is the reindustrialization of France, which may finally be underway, at least in certain sectors of activity. On the one hand, this reindustrialization is being driven by entrepreneurs, often young people, who want to actively participate in the revitalization of their regions. A reindustrialization driven on the other hand, following the current health crisis, by the need to review certain supply chains by securing them with geographically closer partners. This obviously involves the question of our economic sovereignty. It also involves other particularly crucial issues such as working with countries that do not respect human rights.
In the current national and international context, I think that French companies are well placed to win significant market shares, and that French entrepreneurs have not said their last words. Especially since we are in a country where entrepreneurship is becoming easier and where there is no lack of money to invest.
In any case, economic development and entrepreneurial adventure must aim for a more sustainable world, with greater solidarity, promoting social well-being and protecting all ecosystems. France's roadmap for the 2030 Agenda is in line with this.