OUR BUSINESS

Our Trade-Offs and Key Considerations

OUR BUSINESS

Our Trade-Offs and Key Considerations

Operating Responsibly and Sustainably

We create value and deliver on our strategy by transforming the stocks of our capital through our business activities. We seek to operate responsibly and sustainably, thereby maximising value creation and minimising any negative impacts.

 

Apart from creating and preserving value, there are instances where value is diminished through our activities.

 

When making decisions on how to manage our business, we consider the trade-offs between capitals: we aim to maximise positive outputs and outcomes and limit negative outcomes. These are highlighted in our business model.

 

Making strategic trade-offs is key to ensuring we are well positioned for the future. We assess the availability and quality of capital inputs, balance the short- and long-term objectives and take tough decisions to create long-term value.

Operating Responsibly and Sustainably

We create value and deliver on our strategy by transforming the stocks of our capital through our business activities. We seek to operate responsibly and sustainably, thereby maximising value creation and minimising any negative impacts.

 

Apart from creating and preserving value, there are instances where value is diminished through our activities.

 

When making decisions on how to manage our business, we consider the trade-offs between capitals: we aim to maximise positive outputs and outcomes and limit negative outcomes. These are highlighted in our business model.

 

Making strategic trade-offs is key to ensuring we are well positioned for the future. We assess the availability and quality of capital inputs, balance the short- and long-term objectives and take tough decisions to create long-term value.

trade-offs in our use of capitals

trade-offs in our use of capitals

financial capital

Our financial capital consists of the pool of funds that is available to us to collect blood, conduct research and development, provide services and invest in technology, people and growth. It is largely obtained through grants and financing, generated through our operations. Refer CFO report.

Risks

R-5

Impact on Stakeholders

Key trade-off decision in 2022

  • Approval of 10% variation from original budget for BECS implementation

Long-term positive impact

Once BECS is implemented:

  • Increased sophistication with the automation of processes and services
  • Improved use of data analytics and intelligence to inform decision making

Trade-offs

  • The BECS project implementation has been extended by 6 months impacting on the SAP S/4HANA conversion

Short-term negative impact

  • Delays with implementing donor initiatives, such as the donor mobile app to improve the donor experience

Effect on business model/strategy

The implementation of BECS will make a significant difference in how the organisation is managed, such as:

  • Automated processing of blood will help reduce processing times, enable processing in more remote areas and reduce the need for expensive transportation

financial capital

Our financial capital consists of the pool of funds that is available to us to collect blood, conduct research and development, provide services and invest in technology, people and growth. It is largely obtained through grants and financing, generated through our operations. Refer CFO report.

Risks

R-5

Impact on Stakeholders

Key trade-off decision in 2022

  • Approval of 10% variation from original budget for BECS implementation

Long-term positive impact

Once BECS is implemented:

  • Increased sophistication with the automation of processes and services
  • Improved use of data analytics and intelligence to inform decision making

Trade-offs

  • The BECS project implementation has been extended by 6 months impacting on the SAP S/4HANA conversion

Short-term negative impact

  • Delays with implementing donor initiatives, such as the donor mobile app to improve the donor experience

Effect on business model/strategy

The implementation of BECS will make a significant difference in how the organisation is managed, such as:

  • Automated processing of blood will help reduce processing times, enable processing in more remote areas and reduce the need for expensive transportation

Human capital

Our human capital refers to our people. Our overarching objective is to create a rewarding place to work by providing a holistic offering to our people that spans a range of services intended to enhance the health, wellness and work-life balance. Refer to our culture and our people for more information.

Risks

R-1-2.png

Impact on Stakeholders

Key trade-off decision in 2022

  • During the pandemic and for much of 2021 there was a moratorium on staff appointments to ensure the preservation of jobs

Long-term positive impact

  • Internal staff being promoted and appointed to senior positions and to shine across all levels
  • Use of all available data and BI to navigate where best to collect blood and support our employees

Trade-offs

  • Certain tactical level projects had to be postponed due to staff shortages as a result of staff being infected with Covid-19 and increased pressure to collect targets (achieved)
  • Increased pressure on SANBS staff

Short-term negative impact

  • Increased turnaround times to issue blood
  • Staff burnout and fatigue

Effect on business model/strategy

This decision provided SANBS with the opportunity to reflect on the efficiency of operations and to adjust the targeted operating model and streamline operations by creating two new Executive positions:

  • Donor Services and Corporate Marketing
  • Transfusion Medicine and Technical Services

The operating context has changed significantly at the start of FY23 and recruitment and development has accelerated.

Human capital

Our human capital refers to our people. Our overarching objective is to create a rewarding place to work by providing a holistic offering to our people that spans a range of services intended to enhance the health, wellness and work-life balance. Refer to our culture and our people for more information.

Risks

R-1-2.png

Impact on Stakeholders

Key trade-off decision in 2022

  • During the pandemic and for much of 2021 there was a moratorium on staff appointments to ensure the preservation of jobs

Long-term positive impact

  • Internal staff being promoted and appointed to senior positions and to shine across all levels
  • Use of all available data and BI to navigate where best to collect blood and support our employees

Trade-offs

  • Certain tactical level projects had to be postponed due to staff shortages as a result of staff being infected with Covid-19 and increased pressure to collect targets (achieved)
  • Increased pressure on SANBS staff

Short-term negative impact

  • Increased turnaround times to issue blood
  • Staff burnout and fatigue

Effect on business model/strategy

This decision provided SANBS with the opportunity to reflect on the efficiency of operations and to adjust the targeted operating model and streamline operations by creating two new Executive positions:

  • Donor Services and Corporate Marketing
  • Transfusion Medicine and Technical Services

The operating context has changed significantly at the start of FY23 and recruitment and development has accelerated.

manufactured & natural capital

Our manufactured capital includes our business structures and processes, including physical assets, infrastructure (corporate offices and sites), products and services. Through these, we are able to provide a personalised, safe and efficient experience to advance our purpose of being trusted to  save lives; ensuring our long-term sustainability. Refer to our performance measures under our innovation strategic objective for more information.

Our natural capital includes our environmental stewardship for both our internal operations and our products and services. Our internal aspirational targets assist in minimising our impact on natural resources, enhancing operational resilience against supply constraints (for example, water and power). Refer to our greening strategy for more information.

Risks

R-6

Impact on Stakeholders

Key trade-off decision in 2022

  • February 2021 we opened Mt Edgecombe,  setting the precedent for laboratory sophistication and green buildings. However in the FY22 the revamp of our Constantia Kloof (CK1) project  was delayed – i.e. laboratories and security upgrade

Long-term positive impact

Once rezoning is complete, this will enable:

  • Environmentally friendly installations
  • Acceleration of the SANBS greening strategy
  • Research and development of new products

Trade-offs

  • Inability to secure appropriate contractors for the re-zoning and upgrading of SANBS offices and laboratories in Constantia Kloof

Short-term negative impact

  • Delay in implementing automation efficiencies
  • Inability to upgrade freezers and technical equipment

Effect on business model/strategy

  • The need and demand  for blood in South Africa continues – in an environment impacted by a pandemic (and more recently the riots in KZN and Gauteng) which heightens the importance of constantly innovating and executing our INNOVATION initiatives in our iHEALTh strategy
  • Our Mount Edgecombe is the standard setter for ourselves and will be the basis on which all our future building designs will be developed where possible

manufactured & natural capital

Our manufactured capital includes our business structures and processes, including physical assets, infrastructure (corporate offices and sites), products and services. Through these, we are able to provide a personalised, safe and efficient experience to advance our purpose of being trusted to  save lives; ensuring our long-term sustainability. Refer to our performance measures under our innovation strategic objective for more information.

Our natural capital includes our environmental stewardship for both our internal operations and our products and services. Our internal aspirational targets assist in minimising our impact on natural resources, enhancing operational resilience against supply constraints (for example, water and power). Refer to our greening strategy for more information.

Risks

R-6

Impact on Stakeholders

Key trade-off decision in 2022

  • February 2021 we opened Mt Edgecombe,  setting the precedent for laboratory sophistication and green buildings. However in the FY22 the revamp of our Constantia Kloof (CK1) project  was delayed – i.e. laboratories and security upgrade

Long-term positive impact

Once rezoning is complete, this will enable:

  • Environmentally friendly installations
  • Acceleration of the SANBS greening strategy
  • Research and development of new products

Trade-offs

  • Inability to secure appropriate contractors for the re-zoning and upgrading of SANBS offices and laboratories in Constantia Kloof

Short-term negative impact

  • Delay in implementing automation efficiencies
  • Inability to upgrade freezers and technical equipment

Effect on business model/strategy

  • The need and demand  for blood in South Africa continues – in an environment impacted by a pandemic (and more recently the riots in KZN and Gauteng) which heightens the importance of constantly innovating and executing our INNOVATION initiatives in our iHEALTh strategy
  • Our Mount Edgecombe is the standard setter for ourselves and will be the basis on which all our future building designs will be developed where possible

intellectual capital

Our intellectual capital includes our know-how, innovations, research and development, digital advancements and brand; ensuring that we remain sustainable and able to deliver on our purpose; enhancing reporting and decision-making.

Risks

R-6

Impact on Stakeholders

Key trade-off decision in 2022

  • In an ever-increasing complex world dealing with the effects of the pandemic, our 2022 year continued significant investment of time and resources in research and development (especially sero-prevalence studies)

Long-term positive impact

  • This contribution to international and national health agendas has a positive effect on the building of our brand which resonates with donors and other stakeholders

Trade-offs

  • Our investment in value adding research and development, in particular relating to researching/ understanding Covid-19, has seen the reliance thereon, by local and international medical authorities and other stakeholders

Short-term negative impact

  • Extent of reliance impacted an already stretched workforce (human capital) in a tough pandemic environment where extensive new and additional requirements were expected of management and some employees

Effect on business model/strategy

  • Increasing collaboration with local and international stakeholders through the RAD Academy

intellectual capital

Our intellectual capital includes our know-how, innovations, research and development, digital advancements and brand; ensuring that we remain sustainable and able to deliver on our purpose; enhancing reporting and decision-making.

Risks

R-6

Impact on Stakeholders

Key trade-off decision in 2022

  • In an ever-increasing complex world dealing with the effects of the pandemic, our 2022 year continued significant investment of time and resources in research and development (especially sero-prevalence studies)

Long-term positive impact

  • This contribution to international and national health agendas has a positive effect on the building of our brand which resonates with donors and other stakeholders

Trade-offs

  • Our investment in value adding research and development, in particular relating to researching/ understanding Covid-19, has seen the reliance thereon, by local and international medical authorities and other stakeholders

Short-term negative impact

  • Extent of reliance impacted an already stretched workforce (human capital) in a tough pandemic environment where extensive new and additional requirements were expected of management and some employees

Effect on business model/strategy

  • Increasing collaboration with local and international stakeholders through the RAD Academy

social and relationship capital

Our social and relationship capital relates to our interactions with our stakeholders . Developing and maintaining quality relationships with all our stakeholders is key to our sustainability and is a focus in all our interactions. Refer to our stakeholder engagement and value creation for more information.

Risks

R-3

Impact on Stakeholders

Key trade-off decision in 2022

  • With the Covid-19 restrictions that persisted through the FY21 as well as the moratorium on recruitment we reduced our drives to educate young South Africans regarding donating blood and maintaining safe lifestyles

Long-term positive impact

  • Innovative campaigns to accelerate blood collection in a post pandemic environment
  • Increased convenience for donors

Trade-offs

  • Reduced growth of donors between 16 and 30 years of age as well as first time young black donors

Short-term negative impact

  • A slow uptick of black donors and impact on supply of blood

Effect on business model/strategy

  • New innovative campaigns to reach donors at their convenience – eg estates, parking lots, neighbourhoods

social and relationship capital

Our social and relationship capital relates to our interactions with our stakeholders . Developing and maintaining quality relationships with all our stakeholders is key to our sustainability and is a focus in all our interactions. Refer to our stakeholder engagement and value creation for more information.

Risks

R-3

Impact on Stakeholders

Key trade-off decision in 2022

  • With the Covid-19 restrictions that persisted through the FY21 as well as the moratorium on recruitment we reduced our drives to educate young South Africans regarding donating blood and maintaining safe lifestyles

Long-term positive impact

  • Innovative campaigns to accelerate blood collection in a post pandemic environment
  • Increased convenience for donors

Trade-offs

  • Reduced growth of donors between 16 and 30 years of age as well as first time young black donors

Short-term negative impact

  • A slow uptick of black donors and impact on supply of blood

Effect on business model/strategy

  • New innovative campaigns to reach donors at their convenience – eg estates, parking lots, neighbourhoods