3. Need for speed 6. Obtaining online omnipotence 8. Brace for impact 10. Remote working and mobility
Supercharging SMEs with digital
disruption
In association with:
Virgin media business
Welcome I
n what seems like an incredibly short time, the internet has evolved beyond our wildest dreams. It has grown from the – at the time revolutionary – dial-up – to today’s internet of things, which demonstrates just how connected society has become. The most significant and commonplace thing we all perhaps take for granted, however, is broadband. It’s used daily for all manner of tasks, whether that’s at home streaming Netflix or video calls at work. In any case, people just want it to run smoothly and without hesitation. With increased usage come higher expectations and demand, which only continue to rise as services develop further and become faster – and the economic benefit is there for the taking. That’s why the government is so keen to pump investment into broadband speeds as part of a first step to supercharge the UK. It’s a move that’s “reaching thousands more homes and businesses every week,” according to Margot James, minister for digital. For a growing business that has targets to meet and clients to satisfy, online can truly unlock opportunities for sales and marketing alike. Reports have made it abundantly clear that digital skills can help businesses increase revenue, while it doesn’t take much for a poor Twitter review to generate
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bad press. If your company isn’t on those channels or supported by robust broadband to capitalise or meet customer needs, where is it? It’s more than a matter of connecting to the internet and cracking on though. There’s one factor all leaders must bear in mind – cybersecurity. It’s easy to assume only large firms are at risk of online threats but so are SMEs, which means they must be vigilant and take measures accordingly. Reinforcing that point, Kevin Baughan, director of technology at Innovate UK, said: “The UK’s economy is increasingly underpinned by digital infrastructure, so cybersecurity is now a critical component.” Concluding with how digital can enhance your internal processes, remote working is an element a dependable connection can also support, so staff can be on the same page at all times, whether in or out of the office. Indeed, a study found that 70% of employees gravitate towards jobs more when flexible working is an option, showcasing just how much of an impact it can have on recruitment as well as retention. So whether you’re a B2B or B2C company or looking to grow your customer or employee base, embracing digital will certainly be a step in the right direction to reach your goals.
Su pe rc h arg in g SMe s
Need for speed As society’s attachment to connectivity continues to accelerate, so does the expectation for a rapid and seamless web browsing experience – and delivering one for businesses can bring about serious financial rewards
A
s of 2018, 89% of adults use the internet at least once a week, according to the Office for National Statistics, which is a spike from 51% in 2006. Of course, the more people online can only be a good thing for businesses, as this will create more opportunity for them to attract customers in the digital realm rather than just the real world. This has been proven with the government’s ongoing rollout of superfast broadband, which has generated a £9bn turnover boom for local companies on the receiving end of the enhanced speeds. As it stands, five million homes and businesses now have access to superfast connections, according to the government – and it hasn’t been an easy process. Commenting on the achievement, Margot James, minister for digital, said: “Our rollout of superfast broadband across the UK has been the most challenging infrastructure project in a generation but is one of our greatest successes.
We are reaching thousands more homes and businesses every week, that can now reap the clear and tangible benefits that superfast broadband provides.” On a granular level, each £1 invested by the government has been worth a £12.28 benefit to businesses. James added that the goal is to eradicate the digital divide across the country, which has some areas receiving much slower speeds than others. Rural locations haven’t been left out in the cold though. A £45m injection was made to the Rural Broadband Infrastructure Scheme in the summer of 2018, building on an existing £30m fund from 2017. It’s easy to see why the government is keen to support countryside companies. A March 2018 report commissioned by Amazon and conducted by researcher Rural England and Scotland’s Rural College found developing digital capabilities in the country could generate between £12bn and £26.4bn a year in gross value added for the rural economy.
Doug Gurr, UK country manager at Amazon echoed James’ thoughts and said: “There’s much further to go before anyone can say the rural-urban divide has closed.” Continuing by highlighting the potential further, he added: “Embracing digital technology not only benefits the economy; it also allows rural communities to combine great quality of life with access to global opportunities.” March also marked the launch of the government’s £67m Gigabit Broadband Voucher Scheme as part of its “vision of a full fibre Britain”. SMEs can claim up to £3,000 to upgrade company connectivity through the campaign, which will deliver gigabit-worthy speeds through an installation of full fibre broadband. Offering his thoughts on what it was like introducing gigabit broadband to his company, Dan Cluderay, founder of Approved Food, the clearance food and drink business, said: “The day that turned on is the day opportunities started to happen. It’s when the shackles came off.” 3
V I R G I N M E D IA B U SIN ESS
Surf’s up 65% of employees think they’re more productive when working remotely
230,000 small businesses admit they can’t access reliable broadband
7% of companies claim they can never trust their internet connection
Four
$6tn
what cyber attacks will cost SMEs by 2021
in five businesses perceive steady broadband as “extremely important”
74%
London is the largest market globally for co-working spaces with 1,136 centres seen in 2017
of people use Facebook for professional purposes and gaining sales
62%
of firms with a staff count of 1,000 or more are leveraging superfast broadband
93%
of B2B owners prefer to make purchases for business online
39% of companies intend to invest in alternative connectivity solutions in 2018
$1.4tn
what mobile sales will generate by 2021
Sources: Cybersecurity Ventures, Flexjobs, JLL, hubspot, Smart Insights, Magneto IT Solutions, Ofcom, Office for National Statistics, Opinium
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V I R G I N M ED IA B U SIN ESS
Obtaining online omnipotence In the digital age, it’s absolutely essential for every entrepreneur to have a web identity for their company. So whether you’re a B2B or B2C operation, how can you capitalise on technology to get more out of your business?
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retty shop windows may be enticing but they’re not enough to keep you competitive in today’s tech-driven world. For when a customer is hunting a product or service, they simply search the web. Richard Branson, the founder of Virgin, rightly said in a blog post: “If you’re not online, you’re nowhere.” And it rings true in the digitised time we live in, given 45% of consumers look up the website of the company before purchasing its product according to Bazaarvoice, the business consultancy. Today, the ability to develop your business’s digital capabilities as it grows is an integral part of succeeding. Whether it’s a website, e-commerce platform, social media page or a combination of all three, getting your company online reaps major benefits. A report released in 2017 by Lloyds Bank revealed that while 1.6 million small businesses lacked digital skills, those which included a digital strategy were 2.5 times more likely to increase turnover.
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Even if your company doesn’t conduct business online, you’re not out of the woods yet – you’re still expected to be seen on the web. Otherwise, you could be losing out on the opportunity to increase your customer base and get the word out. However, this is no longer limited to having a website. Years ago it was email marketing and newsletters which revolutionised the reach of a company but now social media has surged in importance and the various platforms allow customers to quickly voice their feedback – good or bad. A bad customer experience now only takes minutes to reach hundreds of mobile screens and can easily tarnish a brand’s reputation. For instance, when Nike appointed Colin Kaepernick as its ambassador for the Just Do It campaign, it received much backlash on social media from many Americans. This was because in 2016 the NFL player refused to stand during
SU PE RC H ARG IN G SME S
the US national anthem to protest against the country’s ongoing racism problem, which in turn enraged nationalists and Donald Trump. But this proved to be in the brand’s favour and the increased support it got caused a 31% online sales spike the following weekend. Ultimately it shows web traction is the most essential factor when establishing a marketing strategy. Building on that, the e-retail market, which is predicted to reach $4.5tn by 2021, has never been bigger and is set to take over bricks and mortar stores. Indeed, the testimony lies in Amazon becoming a $1tn company. Consequentially, with changing expectations of customers and, more importantly, your competitors going online, it’s time to rethink your organisational strategies. Looking further ahead at which trends will have the biggest impact on businesses in the next few years, you can already see a significant shift towards voice interfaces and a concomitant demand for artificial intelligence and chatbots. From Marriott International’s Chatbotlr creation to even an NHS trial of chatbots, artificial agents are seemingly replacing the traditional model of customer service. In fact research by hubspot, the software company, said 82% of consumers rate an immediate response to a query as the most important factor to drive satisfaction. Hence more enterprises
have either already incorporated chatbots or plan to do so within a year to give extra customer engagement. And while you might think a strong online strategy is only important for a B2C company, that couldn’t be further from the truth. From a B2B perspective, having profiles on social media might seem abstract at first. If you’re an industrial insurance company then a Facebook audience may seem irrelevant or a medical equipment distribution business on Twitter could appear strange. But today, social media is compulsory even for B2B businesses – you only need to look at companies like IBM and General Electric’s use of storytelling, successful testimonials and influencers to connect with their audiences. When a company looks out for potential partnerships or business deals, its first point of research begins on the web. It’s hardly surprising there are over 25 million business profiles on Instagram and more than 80 million SMEs using Facebook Pages. Indeed, Sheryl Sandberg, COO of Facebook, said in a statement: “Marketers are increasingly seeing mobile as an opportunity it is.” However, it isn’t only for ads and generating sales. Entrepreneurs even use social media for business advice – almost 64% of entrepreneurs, to be precise, according to UPS Connect, the logistics company. However, this doesn’t begin without compliant connectivity – head honchos must ensure bullish broadband to start with. Indeed, of 1,465 leaders surveyed by the British Chambers of Commerce, nearly half said if their internet improved they could leverage more applications like cloud services to boost their business. Even if you think you don’t have the time, there’s no arguing that embracing online is the only way forward. Indeed having a web identity is not just a component but rather your business’ raison d’être.
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V I R G I N M ED IA B U SIN ESS
Brace for impact M
ainstream coverage of cybercrime makes it seem like an issue only elections and corporations need to worry about. But that sort of thinking is landing SMEs in hot water. “While recent hack attacks have highlighted the importance of cybersecurity for some of the world’s biggest companies, it’s important to remember that small and medium-sized businesses need to protect themselves too,” said Paul Tombs, head of SME proposition at Zurich, the insurance company. Indeed, between 2016 and 2017 over 875,000 British SMEs were hit by cyber attacks according to the insurance firm. An overwhelming 98% of SMEs claim they intend to invest in cybersecurity according to market research firm IDC. However, 35% didn’t change anything after falling victim to an attack in the last year, according to insurance company Hiscox. “The results suggest that SMEs are not yet heeding the warnings provided by large attacks on global businesses,” Tombs continued. But it’s an oversight they can’t afford. That is especially true considering the price they have to pay after suffering a cyber attack. “The staggering cost of these crimes can stop a small business from investing in new jobs, training or equipment, in turn boosting local economies,” said Ian Rand, CEO of Barclays Business Banking. Out of the 875,000 SMEs hit by cybercrime between 2016 and 2017, 21% had to splash out more than £10,000 in repairs and one in ten forked out above £50,000, according to Zurich. “However, the good news is the vast majority of fraud against businesses can be easily prevented,” Rand added.
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Indeed, a popular option is getting yourself insured in case things turn pearshaped. “One part of the solution, adopted by an increasing number of organisations, is to transfer the cyber risk to an insurer,” said Steve Langan, chief executive of Hiscox. 36% of Brits managing cybersecurity for their companies have already taken out coverage, according to Hiscox, with 28% planning to do so in 2018. However, seeing how 29% admitted they don’t that trust their insurer will pay out in the event of a cyber attack - prevention should be the goal. “The insurance industry still has a job to do in instilling trust in its policies, delivering clarity over what they cover and simplifying the way they are written,” Langan said. Not
Upgrading your compan not only wards off ha consumer demand. Howe consequences, many do come fo
SU PE RC H ARG IN G SME S
enough can be said for nipping it in the bud and upgrading digital architecture rather than taking your chances. “It is an old saying but a true one: prevention is better than cure,” Langan continued. “In the age of e-commerce and the connected business, it has a particular ring to it.” Given 48% of SMEs view IT as an enabler of business efficiency, according to IDC, it’s merely a question of mustering the confidence to take the plunge into digital transformation. “Robust defences against cyber intruders and strong processes for eliminating careless or rogue behaviour internally are now the keys to business continuity and consumer trust,” Langan detailed. Fortunately, there are plenty of initiatives out there to get you started. For instance, the government in partnership with Innovate UK launched the Cyber Essentials scheme for SMEs to beef up their infrastructure. “The UK’s economy is increasingly underpinned by digital infrastructure, so cybersecurity is now a critical component,” said Kevin Baughan, director of technology at Innovate UK. And in March, chancellor Philip Hammond launched the Gigabit Broadband Voucher Scheme, which lets businesses claim up
ny’s digital infrastructure ack attacks but fulfils ever, despite the crippling on’t think cybercrime will or them
to £3,000 when upgrading to fibre optic broadband. “This means faster, more reliable broadband access [and] as we build the digital infrastructure we need to make our economy fit for the future,” said Hammond commenting on the scheme. Given these kind of opportunities, there’s no excuse not to brew home remedies against cybercrime. “A triple header of threat hunting, rapid response and process change will create the resiliency needed to adapt to new threats as they arise,” said Nick Taylor, security lead at Accenture, the global management consultancy. For example, ticking off the basics like having a secure firewall and modern anti-virus software installed in office computers shouldn’t be overlooked. “Putting security at the heart of everything you do is the only way to become as cyber resilient as you can be. It may sound obvious but many companies still don’t connect their security experts with the rest of the business and that’s a problem,” Taylor continued. Moreover, with cloud technology becoming an increasingly popular way for businesses to store information, getting to grips with encrypting files and enforcing strict password protections is a must. Saving money shouldn’t be the only thing in mind when it comes to upgrading digital architecture because the competitive edge it brings is sharp. “While the rate of attacks on SMEs is troubling, it also shows that there is an opportunity for businesses with the correct safeguards and procedures in place to leverage this as a strength and gain an advantage,” Tombs said. Indeed, given a quarter of medium-sized businesses have been quizzed by a current or potential customer about their cybersecurity measures, according to Zurich, it’s unsurprising that one in 20 businesses say they gained the upper hand over competitors thanks to having tight cybersecurity credentials. So whether it’s investing in modern software or upgrading to fibre optic broadband, taking advantage of the opportunities out there and fitting your business with tech is a surefire way to ward off increasingly sophisticated cybercrime and get ahead of the game. 9
V I R G I N M ED IA B U SIN ESS
Long-distance working works The idea of remote workers can make the hair on the back of employers’ necks stand on end. However, not only can they prove more productive than most but they’re a recruiter’s dream
F
rom top notch computers to fibre optic broadband, modern offices can deck workers out for maximum efficiency. However, if employers upgrade to allow for remote working, the benefits extend even further. And it’s easier to do so than you think. For instance, Voice over Internet Protocol (VoIP) sounds suspiciously like jargon but services like Skype have long been seen as the go-to for video conferencing and such channels are a great way to bring remote employees into meetings. Couple that with fibre optic broadband and the number of home workers you can hook up to the workplace are endless. Even something as simple as forming WhatsApp group chats create cohesion between staff in and out of the office. And given the government’s catalysing the dawn of the next generation of mobile internet with its £200m 5G Testbeds and Trials Programme, there’s no better time to utilise mobile technology. Streamlined communication is the aim of the game and for good reason. For one, facilitating remote working changes the face of recruitment. “Modern home-working is good for the economy as it helps businesses hold on to talented staff and boosts productivity,” said Frances O’Grady, general secretary at the Trades Union Congress (TUC). 10
“And it allows those with caring responsibilities or a disability greater access to the jobs market.” Indeed, between 2006 and 2016, 241,000 employees started working remotely according to the TUC, with IT, agriculture and construction sectors taking on the most. “While home-working may not work in all professions, I would urge employers to look at the value it can bring to their business and their workforce,” O’Grady continued. Seemingly they are, as 34% of executives, entrepreneurs and academies attending the Global Leadership Summit expected half their workforce to clock in from the comfort of their own homes by 2020. And it mustn’t go unnoticed that PowWowNow, the web meeting provider, revealed 70% of employees feel more drawn to a job when flexible working is on offer – especially given current record high employment levels. Enabling remote working not only boosts recruitment numbers but sees employees become more productive. “Our study also shows employers benefit from increased effort as workers strive to show that working remotely is not a slacker’s charter,” said Alan Felstead, professor at Cardiff University. Indeed, 39% of remote workers said they put in extra hours to complete objectives, according to Cardiff University, compared to just 24% of those in fixed workplaces. So long as employees are kept on the same wavelength through modern technology, remote workers can be a great asset. And given 47% of fulltime staff said their companies don’t yet encourage home-working, according to PowWowNow, stealing the march from competitors has never been easier.
SU PE RC H ARG IN G SME S
67% 70% of employees wish flexible working was an option in their workplace
of employees are more attracted to a gig if it offers flexible working
30% 66% 45% of people would pick flexible working over a pay rise
of commuters feel stressed at least once a week
of people spend over an hour a day commuting
39% 58% 70.5% 83% 65%
of remote workers feel they put in longer hours to get the job done, compared to 24% in offices
of people feel working out of the office keeps them motivated
of remote employees agree or strongly agree they wouldn’t leave their company for higher pay, compared to 62.5% of office workers
of organisations agree flexible working has helped their business
of employers have hired flexible workers
Sources: New Technology, Work and Employment, PowWowNow, Ten2Two, University of Cardiff
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SU PE RC H ARG IN G SME S
67% 70% of employees wish flexible working was an option in their workplace
of employees are more attracted to a gig if it offers flexible working
30% 66% 45% of people would pick flexible working over a pay rise
of commuters feel stressed at least once a week
of people spend over an hour a day commuting
39% 58% 70.5% 83% 65%
of remote workers feel they put in longer hours to get the job done, compared to 24% in offices
of people feel working out of the office keeps them motivated
of remote employees agree or strongly agree they wouldn’t leave their company for higher pay, compared to 62.5% of office workers
of organisations agree flexible working has helped their business
of employers have hired flexible workers
Sources: New Technology, Work and Employment, PowWowNow, Ten2Two, University of Cardiff
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