DNV’s new chief executive officer Helge Midttun recognises that the global economy is changing, and its direction is clear. The ‘production’ economy, characterised by physical products, is developing into a knowledge-based economy, and in turn to a growing need for independent third-party players. Helge Midttun is well placed to lead DNV into this challenging future.
Helge Midttun (45) is the first non-engineer to head DNV.
His background as a business economist, with extensive management experience in a world characterised by economic change, gives him a sound foundation on which to further develop DNV.
Helge Midttun (45) is the first non-engineer to head DNV.
His background as a business economist, with extensive management experience in a world characterised by economic change, gives him a sound foundation on which to further develop DNV.
The knowledge-based economy has already created a demand for new services, and this demand will continue to increase. Helge Midttun describes DNVs position for facing these challenges: DNV is in a unique situation. It is just the type of knowledge company that will be increasingly required by the markets.
DNV is respected by major customer groups and our brand name is well known. We are acknowledged to be independent, our employees have sound expertise in our markets, and we have a global presence. Our challenge will be to make this knowledge available, so that we can help our customers to safeguard life, property and the environment.
A leader in certification
DNV has issued more than 30,000 certificates for management systems. The company that Helge Midttun heads is one of the largest certification companies in the world - a position won over the past 10-15 years.
To put current economic developments into concrete terms, Helge Midttun points out examples from the rapidly growing IT industry and the new services it has developed. Customers no longer meet suppliers face-to-face. Services, in particular, can be bought on the Internet. Customers therefore depend on their suppliers being credible, and on the systems used being sufficiently secure.
As an independent third party, DNV can help by certifying such systems. We can verify and certify in accordance with quality requirements and standards. In a market with increasing trade, more open boundaries, fewer obstacles as regards distance, and more stringent security requirements, this need becomes greater by the day.
Advisory Services
DNV also has traditions going back more than 130 years in ship classification. Midttun points out how development of the knowledge-based economy will influence our customers need for classification services. Our services have always been based on DNVs knowledge. But the classification system will not remain unchanged. It is under development and under pressure. The difference between the various classification societies rules is diminishing, and the products we offer our customers are becoming increasingly alike. Personally, I think things will develop in the direction of more transparency in the various classification societies Rules.
The main competitive factor in the future will be how we apply our expertise to help customers gain added value through the use of our services. We must provide them with more advisory services, in addition to traditional classification services. We can, to a greater extent, offer shipping companies our technical expertise, so helping them throughout all the phases of a ship from pre-contracting to scrapping. Previously, we have probably been too much the controller. Now we must be the consultant that finds solutions together with the customer irrespective of whether this is a shipowner, oil company or shipyard. Midttun emphasises that it is important for DNV to differentiate between its roles here: We have one role as an independent third party and another as an advisor.
Class societies must be restructured
Helge Midttun has told the international shipping press that he expects structural changes to be made in the classification societies. It would be naïve to think that the classification societies, as we know them today, will exist forever. Surroundings change, the structures of shipping companies and shipyards today can hardly be compared with what they were like 20 years ago. Although the classification societies have, of course, developed, their structures have remained much the same. The major players have been the same for many decades.
We must primarily work towards having strong classification societies, with no doubt as to the safety and integrity that they are to safeguard. With increased demand for global presence, technological developments and a constantly high level of expertise, I dont think there is room for all the classification societies that currently offer their services, which means that a restructuring will be carried out.
This is one of the reasons that, for example, DNV has held discussions with Germanischer Lloyd to reach, if possible, binding forms of cooperation.
DNVs new CEO is also interested in the other classification societies. In the wake of the Erika sinking off the coast of France, and other recent incidents, there has been criticism of the classification societies. Questions have been asked about the various players abilities to take care of their responsibilities and contribute to increased safety.
Explains Midttun, Ive made critical comments, too. However, Im proud of the fact that DNV has the fewest port-state detentions throughout the three major port-state control regions. We should be pleased about this, and make sure that we maintain this position in the future too. We must never in any way compromise on safety, and we must say no if there is any doubt as to whether the customer is taking care of safety. But we must not become arrogant, and must always have in mind the goal that everything can be done better. For example, through the International Association of Classification Societies, we must take the initiative and push for joint improvements, and for the classification societies role as a third party contributing to increased safety through wider trust and respect.