Digital Transformation - Q2 - Jun 2019

Q2 / 2019 AN INDEPENDENT PUBLICATION DISTRIBUTED ON BEHALF OF MEDIAPLANET WHO TAKE SOLE RESPONSIBILITY FOR ITS CONTENTS

THEO KNOTT - BRITISH COMPUTER SOCIETY, CHARTERED INSTITUTE FOR IT Artificial intelligence should be utilised within an ethical framework. » p4

LONDON TECH WEEK London is Europe’s tech investment capital. » p4

SARAH WILKINSON CHIEF EXECUTIVE, NHS DIGITAL Delivering new digital data and technology solutions in the public sector is a highly multidisciplinary challenge. » p8

Digital Transformation BUSINESSANDINDUSTRY.CO.UK

© ELEN11

Ready by Design

In today’s business landscape, you have to be prepared for anything.

Find out how at avanade.com/ReadybyDesign

9700-Avanade-RbD-Guardian-banner-265x51cm.indd 1

Follow us

@MediaplanetMarketing

@MediaplanetUK

@MediaplanetUK

Project Manager: Chris Greenwell E-mail: chris.greenwell@mediaplanet.com Business Development Manager: Ross Bannatyne Content and Production Manager: Kate Jarvis Managing Director: Alex Williams Digital Manager: Jenny Hyndman Designer: Kiane Blackman Content and Social Editor: Harvey O’Donnell Mediaplanet contact information: Phone: +44 (0) 203 642 0737 E-mail: uk.info@mediaplanet.com All images supplied by Gettyimages, unless otherwise specified

Please recycle

05/06/2019 15:27

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET © METAMORWORKS

Championing digital transformation from the board room JULIAN DAVID CEO, techUK

Changing with the times cannot be seen as the sole responsibility of the digital and IT experts within businesses. Digital transformation must be at the very heart of business structure and culture, driven from the boardroom and down through the company.

W

e are living in an increasingly digital world that has implications for individuals, organisations and society. In an age where data driven technologies, such as artificial intelligence (AI), are underpinning more and more of how we live and work, there are profound questions around skills, ethics and culture change that must be answered by senior leadership across all organisations and sectors.

So, when it comes to transforming businesses to compete in this changing world, it must be those at the board level that take the responsibility to support and guide employees through this change, as well as champion those te ch nolog ies a nd pe ople t hat a re pressing forward.

Board-level leaders must drive tech innovations In order to support a smooth, successful and continuous culture of digital transformation, boards must begin with the basics. They must ask themselves what the business or organisation’s core values are and how these translate into decisions that are being made about the adoption and deployment of advanced technologies.

This must have a board-led process but have considerable input from all levels of the organisation. It is crucial that boards instigate a culture shift that is inclusive and promotes a positive move towards a more digitally attuned culture.

Keeping employees involved across the digital transformation process is a boardlevel responsibility that techUK recently put forward in its Digital Ethics Paper earlier this year.”

Involve colleagues across the business A recent Doteveryone report found that where companies have processes to enable ethical questions to be flagged and addressed these are often very effective, with 79% of employees saying that their concerns were addressed.

Keeping employees involved across the digital transformation process is a boardlevel responsibility that techUK recently put forward in its Digital Ethics Paper1 earlier this year. Boards must then look to see how values align with changes to business goals and key performance indicators. This will ultimately inform the business of which technologies need to be championed.

Boards must also be able to answer some key questions. In particular around who ‘digital’ reports go to and how high up it is on the board agenda. They must understand what skills they currently have, what types of skills are needed and what needs to be done to support staff in their digital skills development. This will not only ensure that the business can cope with immediate requirements but will also lead to staff finding new opportunities using the technology, as they better understand and use tools.

1: www.techuk.org/insights/reports/item/14834-techuk-launches-new-digital-ethics-in-2019-paper

2 BUSINESSANDINDUSTRY.CO.UK

Find out what data is crucial for organisational success Other things that I regularly ask of boards are: ‘What data does the organisation gather and use?’ And: ‘What are board’s responsibilities when it comes to that data and their customers, employees and stakeholders?’ Boards need to also know how aware they are of the digital disruption currently taking place in the business.

Does the board know where innovation is taking place in the business?

And what is it doing to encourage it?

Will there be greater investment in the future, and might it be able to support tools, such as sandboxes, to foster and grow an innovation culture? Finally, what will it do to manage disruption within the company and ensure that the needs of all are addressed?

These questions must be answered before organisations take the deep dive into transformative technologies, such as cloud, AI and IoT, which can be exploited to supercharge, not only our businesses, but the wider UK economy.

Within this report, there are some excellent ideas from senior leaders that can help organisations to realise the full potential of digital and ensure transformation is led from the top.

Read more at businessandindustry.co.uk

© VLADANS

Three steps to your business’s digital transformation MELANIE FRANKLIN Co-Chair, Change Management Institute UK

Culture is the DNA of an organisation. It is the way things are done; the values, beliefs and priorities that are the ‘norm’ and guide everything that happens. If you are to truly transform your organisation, and make digital key to everything you do, then belief in digital as a positive outcome must be baked into the culture.

T

he importance of the cultural transformation is recognised in the Forrester Digital Maturity Model 4.0: “Firms that have reached the highest levels of digital maturity have had to address cultural, organisational, technical, and insights challenges.”

Step 1 – Discover your digital principles Digital platforms and tools continually evolve, but the need for an organisational culture that values digital practices as a building block for competiveness and efficiency is a constant. To create this (or any other culture), start with the core principles that you want your staff to believe in.

Debate ideas for these principles across all levels and roles in your organisation. Use these sessions as a valuable opportunity to co-create new ideas for what transformation means and what it can achieve.

If there are concerns that digital transformation will lead to staff obsolescence, take the opportunity to socialise views that show digital as a force for good. For example: “digital working enables us to automate routine work and engage all staff in complex tasks and relationship building activities with customers and potential customers.” A cooperative approach can empower your workforce.

Step 2 – Define new ways of working Encourage staff to define how to formalise digital ways of working. Encourage as many people as possible to help establish new standards, policies and processes and to incorporate responsibilities for digital transformation into job descriptions and outcomes from digital working into new KPIs. Step 3 – Lead by example Finally, don’t forget the importance of sharing success stories and showcasing examples of leaders and influential members of staff getting involved in digital ways of working.

Transformation can only be sustained if digital ways of working become the norm for nearly everyone. So, the sooner you start sharing the involvement of the early adopters, the sooner you can encourage more hesitant staff to get involved.

Read more at businessandindustry.co.uk MEDIAPLANET

© LUCADP

How can digital transformation solve your customers’ problems?

Digital transformation within TMT businesses does not have to be complicated. The imperative is to ensure that the customer lies at the heart of your approach.

INTERVIEW WITH: PRAVEEN SHANKAR UKI Technology, Media and Entertainment and Telecoms Sector Leader, EY

D

igital transformation will only succeed for technology, media and telecoms (TMT) businesses if they have a thorough understanding of their customers and their ever-changing needs. Enterprises must keep things simple, view technolog y as an enabler and drive the right insights from data in order to succeed.

Creating robust digital business models is a priority. Enterprises need a clear understanding of the different technologies available, and how they can work together to create real value for customers.

INTERVIEW WITH: ADRIAN BASCHNONGA Lead Global Telecoms Analyst, EY

and platforms actually works against Just adding new the new levels of agility organisations capabilities to an are hoping to achieve.” already complex world of Crucially, this drive for simplicity processes, systems and platforms mirrors customers’ needs themselves. actually works against the For example, according to EY3, new levels of agility 24% of consumers find it organisations are difficult to track their 41% of UK hoping to achieve.” favourite content across consumers believe

The mindset of many businesses needs to change because everything has to be focused on the customer journey. Technology is an enabler, not an end in itself.”

d i f ferent ser v ices, should be top of mind” adds Shankar. it’s impossible to platforms and apps. “The most successful companies technology fix alone keep their personal data secure when Th i s r i s e s to 3 9 % will accelerate their reskilling will not provide. using the internet or among 18-24 year olds, initiatives to bridge the gap, shortenT h e e mph a s i s internet-connected the so-called ‘digital ing their workforce’s time to mastery.” tends to be too devices. natives’ who may not much on implementbe as tech-savvy as some Measure your value creation ing the latest shiny companies like to think. piece of tech,” says EY Lead initiatives An integrated view of technology Global Telecoms Analyst, Adrian Obsess about your When technology is viewed Baschnonga. “The mindset of many is paramount. Shankar adds: customers as an enabler it becomes Star t ing w it h your c ustomers businesses needs to change because “There is a lot of hype around easier to set relevant instead of leading with technol- everything has to be focused on the disruptive technologies but KPIs. Enterprises of UK ogy is critical. EY research 1 reveals customer journey. Technology is an you need to know how should consider consumers find it difficult that 61% of TMT companies regard enabler, not an end in itself.” to apply them to your the return on to track their favourite improving customer experience as a business effectively. This investment that content across different top strategic priority. However, 65% Keep it simple and focus on means harnessing them d ig ita l techservices, platforms and blame legacy IT platforms for being outcomes together correctly.” nolog y brings, apps. This rises to 39% unable to give customers what they Simplicity should be an informing by focusing on of 18-24 year olds. want. principle of any transformation Take a holistic view of metrics like Net L eapi ng to te chprogramme. At the same time, people and processes Promoter Score, costnolog y solut ion s an enterprise must identify While intelligent automation can to-ser ve and employee w it hout hav ing what it wants new tech- act as a game-changer, an engaged experience. This includes placing a real 61% of TMTs the customer at nology to achieve and the workforce is critical to its suc- value on the huge amount of actionable see improving the forefront of cessful implementation. data that is generated by technology customer pain points customer you r t h i n k i ng T r a n s f o r m a t i o n and boosts brand awareness, customer that it should address. experience as could undermine roadmaps require acquisition and retention, and ulti“Digital transa top strategic priority. your digital c o n s i s t e n t mately sales. for m at ion 46% of UK t r a n s fo r m at i o n a r t ic u l at io n should have Sharing these customer insights consumers believe road map. A deep a c r o s s t h e c le a r outc ome s across business functions ensures there is too much understanding of their organisation, that the benefits of digital transfor customers, and choice in the market in terms of attitudes, needs and interacand a culture formation are felt right across the simplification of products different bundles tions is essential. of collabora- organisation. For this to happen, and processes should be of broadband and For example, EY research 2 reveals the key driver, says Praveen tion should be governance models must also be fit content. that about four out of 10 consumers do Shankar, UKI Technology, front and centre for purpose. not think their personal data can ever Media and Entertainment and of the enterprise be safe. Reacting to this smartly means Telecoms Sector Leader at EY. “Just approach.

Outcome-led continuous providing reassurance about data adding new capabilities to an already “Understanding the skills that improvement is the end goal handling, the kind of support that a complex world of processes, systems are missing in your organisation Many enterprises tend to regard digital

24%

1: www.ey.com/en_gl/tmt/digital-transformation-for-2020-and-beyond-eight-telco-considera 2: www.ey.com/uk/tmt/trustinthehome 3: www.ey.com/uk/tmtdigitalhome2019

MEDIAPLANET

transformation as a one-off process to complete. In fact, the needs and wants of the business and its customers are constantly changing so a TMT’s technological requirements must continue to evolve too.

The ability to revisit transformation principles is itself a natural result of being outcome focused. Various external factors, from disruptive competition to changing compliance demands, may force enterprises to change course or adapt existing digital programmes. As a result, agile thinking is a necessary complement to effective transformation.

Written by: Steve Hemsley

Sponsored by

The EY TMT sector team is helping businesses to transform and evolve quickly to seize the opportunities and mitigate the risks that digital transformation creates. If you would like to have a conversation about your organisation’s digital transformation and how EY can help, please contact Praveen at pshankar@uk.ey.com Read more at ey.com/uk/tmt STATS PROVIDED BY EY

BUSINESSANDINDUSTRY.CO.UK

3

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET © VASYL DOLMATOV

© ANTONIO_DIAZ

Exploring inclusivity, AI and the future of work London continues to be Europe’s tech investment capital – raising £1.8bn in venture capital (VC) and public funding in 2018, with more initial public offerings than anywhere else in Europe. We must continue to take on the challenge of diversifying the industry, with a full commitment to inclusive innovation.

A

ccording to a 2018 report, only 14.6% senior UK tech leaders are women and 70.5% senior executive teams have no BAME members at all .

The Mayor of London, Sadiq Khan, said: “It’s important that the tech sector reflects the diversity of the capital and so it’s really encouraging to see this emerge as a major theme of this year’s London Tech Week – it’s right that we lead by example in a city as progressive as London.

“London is Europe’s leading tech hub and our tech sector is a vital source of jobs and growth for the economy. From FinTech to artificial intelligence, London companies are leading the way in developing ideas and technologies to change the world.”

London supports startups The capital continues to be a hub for innovation, with more than three times as many AI start-ups in London as any other city in Europe. We were home to 745 AI companies in 2018. AI was the UK’s fastest growing sector in 2018, achieving a 47% year on year increase in investment as it attracted £736m.

Brexit will undoubtedly be on the minds of business people this year, as the industry sizes up the impact of our exit from the European Union.

However, the capital remains a leading tech player, with London tech firms having attracted more than £4bn in VC funding since 2016, almost double its nearest European rivals – Paris, Berlin and Stockholm – combined.

Carolyn Dawson, Managing Director of London Tech Week said: “The 4th Industrial Revolution is well underway, transforming business, society and the way we live. The UK continues to innovate as a worldwide cutting-edge tech hub and, as one of the world’s most open and welcoming markets, can lead the global conversation in designing and scaling tech business.

1: From Inclusive Boards report (November 2018) referenced: https://www.alphr.com/ business/1010188/new-report-reveals-massive-diversity-deficit-in-uk-tech-firms

About LTW: London Tech Week 2019 launches on 10th June 2019, committing not only to lead the way in tech innovation, but to tackling head-on the issue of diversity in the industry.

This year’s Tech Week will once again unite tech and talent with a packed schedule of events showcasing the latest innovations in AI & quantum computing, blockchain, the future of work and more.

London Tech Week connects international communities from across the spectrum to address how access to tech for all can have a profoundly positive impact in society and business. londontechweek.com Read more at londontechweek.com

4 BUSINESSANDINDUSTRY.CO.UK

Ethical AI is about people, not just technology THEO KNOTT Policy Programmes Manager, BCS, the Chartered Institute for IT

Ethical AI is not just a technical issue. Equally important is empowering people, so that the benefits of AI can be felt far and wide.

AI

is already having a massive impact on t he lives we lead, whether that’s in the workplace, how we interact with each other or even within our health services.

The decisions that are taken about how we harness the benefits of this new technology, while mitigating against its unintended consequences, should be carefully thought through.

AI is powerful – it affects our daily lives and it makes decisions that are beyond our comprehension. This means careful thought about how and where it should be used, within an ethical framework is one of the preeminent challenges of our time.

Our understanding of the ethical impacts of AI is poor What is concerning is that our record of understanding the ethical and societal implications of new technology has frequently been poor. Whether it be the Industrial Revolution, which at the time caused significant unemployment, or, these days, data-fuelled social media resulting in misused personal data, we generally only appreciate that we could have done things better in retrospect.

As human beings, we naturally crave technological progress, so, just because new technology may mean new challenges, we shouldn’t avoid change. We must build an understanding of what progress in AI comes at the expense of, and introduce AI with a considered

AI is powerful – it affects our daily lives and it makes decisions that are beyond our comprehension. This means careful thought about how and where it should be used, within an ethical framework is one of the preeminent challenges of our time. approach. We need to take time to implement it in a way that allows its myriad benefits to be distributed far and wide and its negative aspects mitigated as best they can be.

What is being done?

When it comes to AI, ethical implementation means, broadly, two things: get t i ng t he reg u lat ion r ight; a nd ensuring that it is a technology that has people at its very core. While these are, in some way, interdependent goals, we can end up compounding issues by relying on yet more technology to solve problems that may arise when educating and empowering the people using it.

AI must have people at its core Putting people at the heart of AI means developing AI that benefits mankind and giving people the tools to harness it. It also means putting appropriate steps in place to protect and offer redress to those who will almost inevitably be impacted as AI becomes ubiquitous, whether that be through job displacement, being the

victim of an inaccurate algorithm or something we have yet to consider entirely.

We’re evolving tech that is more responsible There are tentative signs that we have learnt some of the lessons regarding A I. Organisations in t he U K such a s D o t e v e r y o n e 1 h av e p r o d u c e d out sta nd i ng work on Respon sible Technology.2 Furthermore, the European Commission’s expert AI group, consisting of globally renowned AI academics, has recently finished consulting on its draft ethical guidelines for AI.3 It lays out the guidelines around building human trust in AI, and builds cross-border frameworks that regulation needs if it is to be effective in a world of multinational tech companies.

While there are genuine concerns about the negative aspects of AI it should not be forgotten that there are potential benefits that could revolutionise the way we live – for the better. If we implement AI into everyday life, in an ethical and robust way, it is no exaggeration to say that it could be an incredibly liberating force for the world, giving people better health, more wealth and time to do the things they enjoy. But with something this important, it is incumbent on governments and those working in technology to get it right the first time.

Read more at businessandindustry.co.uk

1: doteveryone.org.uk/ 2: doteveryone.org.uk/press-events/responsible-tech-2019/ 3: ec.europa.eu/futurium/en/ai-alliance-consultation

MEDIAPLANET

© MONSITJ

Cloud Computing: a path to innovation, efficiency, and growth

DARREN MOWRY EMEA Director, AWS

We’re going through a shift in technology that is unlike any other in our lifetime, and it’s happening at a startling pace – much faster than anybody anticipated. Cloud Computing allows organisations of any size to focus on what really differentiates them – such as accelerating drug discovery, producing blockbuster movies, building great mobile apps, and even exploring Mars – and removes the heavy lifting of managing the underlying technology infrastructure.

W

e’re goi ng t h roug h a shift in technology that is unlike any other in our lifetime, and it’s happening at a startling pace – much faster than anybody anticipated. Cloud Computing allows organisations of any size to focus on what really differentiates their organisations – such as accelerating drug discovery, producing blockbuster movies, building great mobile apps, and even exploring Mars – and removes the heavy lifting of managing the underlying technology infrastructure.

The London School of Economics and Political Science (LSE) report, The T r a n s for m at ive E f fe c t of Cloud on Firm Productivity and Performance, found that cloud has had a significant impact on organisational efficiency, with 90% of organisations using the cloud to make productivity gains in 2018.

Every imaginable organisation from startups to enterprises to government organisations are now using the cloud to securely innovate, reduce costs, scale, and better serve their customers.

MEDIAPLANET

Cloud is helping organisations deliver productivity enhancement Cloud enhances organisational productivity as infrastructure, pro ces ses, a nd op erat ion s a re mov i ng to t he cloud. The L SE report found that when integrated effectively into a technology stack, and combined w it h best management practices, using cloud services improves productivity by as much at 20%.

L ead ing globa l prov ider of digital asset management, creative logistics and analytics solutions, Adstream, is an excellent example of this. By going all-in on AWS, Adstream has been able to optimise its IT usage and modernise its workforce with more automation, auto-scaling, and faster deployment methods. Adstream can scale easily to meet the requirements of new and large customers, which enables it to increase revenues and drive growth.

The public sector is using AWS to modernise its technology and

improve the effectiveness and efficiency of the services it provides to citizens and staff. Using AWS, the public sector has been able to significantly streamline services. As well as saving money, AWS is enabling these organisations to manage, change, improve and secure their systems.

Cloud strategy is fueling digital transformation The LSE report found that the most productive and successful organisations today are positioning cloud at the core of their transformation or market-entry strategy, and are deriving clear benefits from this approach.

These include, for example, a reduction in turnaround times for some decisions by 50 to 70% due to the removal of many complex larger capex decisions for infrastructure and technology; a reduction of enterprise technology costs by 20 to 80%; and ‘freedom’ to assess emerging areas such as Artificial Intelligence (AI) and Machine Learning (ML).

These results highlight the shift to cloud services and how all organisations, irrespective of type, size, and location, are gaining benefits. This trend will continue as cloud evolves and becomes further embedded in organisational strategy, culture, and execution.

Take Tandem Bank, a digital bank shaking up the status quo that went all-in with AWS. Tandem App, powered by AWS, allows users to securely manage all their bank accounts in one place and provides a range of ser v ices, including spending forecasts and personalised highlights using machine learning algorithms. Using AWS, Tandem Bank has delivered a 47% increase in overall application performance of the app.

Innovation and efficiency go hand-in-hand The LSE report found that 95% of start-ups would have been prohibited from entering the market at all if it weren’t for cloud computing. Many of the consumer apps that have become household names in the last few years may not have become so pervasive. A range of startups were able to very quickly launch their new ideas, without having to secure a ton of capital fi rst, and then have been able to scale globally based on

consumer demand at a speed that simply wouldn’t be possible if they had to build their own data centres.

The shift to cloud computing has seen also seen enterprises reinvent themselves and bring new services to market, so that they can move quickly, reduce costs and compete effectively against some of these more agile newcomers.

Find your future in the cloud Cloud services offer the path to a more productive, efficient, and innovative future for organisations of all shapes and sizes. It’s time to invest in the right approach to adopt cloud services to drive transformation throughout your organisation.

Sponsored by

Read more at pages.awscloud.com/ digital-transformation

BUSINESSANDINDUSTRY.CO.UK

5

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET © MONSITJ AND 1XPERT

Digital transformation is not just a London thing The Government Digital Service was set up to help government work better for everyone, no matter whoever or wherever they are. Here’s how we’re making sure everyone around the country can benefit from our work.

I

n lots of ways, the Government Digital Service (GDS) is a typical technology organisation. We have teams of designers and developers working on digital services. We have a user research lab where we test the things we’re building. And the walls of our offices are decorated with graphs and Post-it notes.

But we differ from other tech organisations in two crucial ways.

Firstly, we design services and products that people often have no

choice but to use. If you want to get a passport or driving licence, or claim a benefit, then government is the only organisation that can provide this.

And secondly, the things we make are for everyone in the country, regardless of age, background or geographical location.

Making things better for everyone, everywhere This last aspect - geographical location - is something we’ve been

Government Digital Services at their 2019 Sprint event in Cardiff

6 BUSINESSANDINDUSTRY.CO.UK

Now, more than 6,000 suppliers from across the UK work with government through the Digital Marketplace. thinking about a lot recently. As is typical of a tech organisation, our offices are in east London but the people we build for and the organisations we work with are all around the country. That’s why it’s essential that GDS has a presence all around the UK. Not just London.

Government hasn’t always been very good at this. For example, go back ten years and there were only a dozen or so companies supplying tech to government. All were based in London and the South East.

So, in 2014 we launched the Digital Marketplace, which makes it easier for small- and medium-sized businesses across the country to work with government. Now, more than 6,000 suppliers from across the UK work with government through the Digital Marketplace.

From central to local Similarly, when GDS was established in 2011, its initial remit was

KEVIN CUNNINGTON Head, Government Digital Service

to work with central government.

For example, we worked with the Cabinet Office on a new service for people to register to vote online and we partnered with the Department for Work and Pensions on a digital Carer’s Allowance service.

But we know that local authorities are a huge provider of public services and - in many cases - have many more day-to-day interactions with citizens. That’s why we’ve broadened our remit to work with local authorities across the county. And, it’s why, last year, we launched the Local Digital Declaration, along with the Ministry for Housing, Communities and Local Government.

More than 160 local authorities are now signed up to the declaration - making a commitment to use digital and technology to improve people’s lives.

Closer links across the country While our headquarters may still be in London, GDS now has representatives in cities including Leeds and Bristol, while the GDS Academy - which builds digital capability among public servants - runs pop-up

events across the country.

Every year, GDS runs an event called Sprint - to highlight achievements in digital government. This year, for the first time, we’ve taken Sprint around the UK. We’ve collaborated with the governments of Scotland, Wales and Northern Ireland, as well as Leeds City Council, for a series of events.

These events have put a spotlight on the great digital transformation projects happening across the UK. They’ve celebrated the people and the organisations working on them.

And these events have also helped us forge even closer links with our partners across the UK so that we can continue to work together to help improve things for everyone, regardless of whoever, or wherever, they might be.

Read more at businessandindustry.co.uk MEDIAPLANET

Moving from experimentation to transformation How UK businesses can scale their digital transformation and succeed where others fail.

T

he c on ne c t ion b et we en people and tech highlights the need to get technologists and experts with deep customer empathy in the same room, working on the same problems. Digital transformation is technology and people, innovation and disruption, offense and defense, each in equal measure.

Riding in a stranger’s car Look at the rapid global spread of ride hailing. Digital technology made it possible for Uber and Didi Chu xing to match riders w it h drivers efficiently, inexpensively and on a massive scale. But what was harder to predict was customers’ embrace of the service, their willingness to jump into the cars of total strangers. That is what made it possible for those companies to

MEDIAPLANET

redefine transportation.

Airbnb wouldn’t have been valued at $31 billion just nine years after its founding if customers hadn’t quickly become comfortable sleeping in someone else’s house. In retail, the willingness of consumers to trust the product reviews of 1,000 online strangers, and write paragraphs of detailed description of their own, moved e-commerce from a digitised catalogue to a true substitute for the trusted shop owner.

Managing the complexity of digital strategy Today, and as Britain is looking to maintain its foothold of digital innovation, one of the challenges business leaders will have to face is prioritising the ever-multiplying possible applications of digital technologies.

Airbnb wouldn’t have been valued at $31 billion just nine years after its founding if customers hadn’t quickly become comfortable sleeping in someone else’s house.”

Internet of Things, artificial intelligence, augmented reality and more each have different applications and impact across different sectors of the economy. That adds complexity for those trying to set digital strategy and fuels more than a little frustration.

A roadmap for digital transformation To help executives envision, structure and sequence a successful digital transformation, Bain & Company partnered with the World Economic

RICHARD WEBSTER Partner, Bain & Company

Forum to convene a group of senior executives from 40 global companies.

The group, all engaged in digital transformations at their companies, represent businesses from a cross-section of industries and include both incumbents and digital leaders.

One year of discussion, debate and experience sharing helped to shape a framework for digital transformation that focuses leadership teams on four critical elements: digital strategy, business model, enablers and orchestration.

Of course, each company will have its own distinctive plan for integrating these four elements into its business. And like everything digital, the framework must evolve to rem a i n relev a nt, prac t ic a l and forward-looking. Still, these elements provide valuable structure

to what has been a chaotic and even damaging swirl of activities for many businesses trying to adapt.

It’s been said before that, while the current pace of change is fast, it’s probably the slowest we’ll experience for the balance of our lifetimes.

With the UK set out to strengthen its position as a world-leading digital economy, what company can afford not to work on digital transformation now?

Sponsored by

Read more at

bain.com/digital-transformation

BUSINESSANDINDUSTRY.CO.UK

7

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET © NORTONRSX

The public sector is a rich learning ground for future leaders of digital transformation Delivering digital and technology transformation in the public sector involves complex technical work, in a complex operating environment, within a complex governmental system. It’s a fantastic education for those who aspire to lead digital transformation in any sector.

M

any of the individuals who work in public sector technology are motivated by a personal commitment. That may be a commitment to public service in general or to their specific area of work, be that the NHS, national security, the protection of our environment or some other domain.

Others see working in the public sector for part of their career as an opportunity for accelerated personal development by working in a system of – often extraordinarily high – complexity and criticality.

Delivering technology into the public sector is a complex task Delivering new digital data and technology solutions in the public sector is a highly multidisciplinary challenge.

Teams have to understand policy intent and be able to shape strategy in that context and they must be able to assess the wants and needs of a very broad set of stakeholders. They must be able to conduct detailed technical analysis of a target solution and an existing technical environment and then either design and build solutions, or shape the market and manage commercial engagement, or both.

They must manage finances under high levels of scrutiny, as is appropriate when public money is employed. These teams depend on strong people, programmes and operational management capabilities.

Cautious bureaucracy can slow technological advancement Working in government has specific challenges. Ministers with whom you have developed an effective working relationship may suddenly be replaced by others who have no prior knowledge of the area or may have very different priorities.

The complexity of the system and the potentially disproportionate scale of impacts from relatively small changes leads to slow and cautious bureaucracy. It can be very hard to change decision-making procedures: old mental models and decision habits are often deeply ingrained, and risk-aversion is high.

To succeed, rapid adaptation and system-level understanding is crucial Success in this environment is determined by two key qualities: An ability to understand the overarching system

8 BUSINESSANDINDUSTRY.CO.UK

within which you are operating from as broad a perspective as possible; technical, operational and political. And an ability to adapt rapidly and navigate that complexity. Developing these qualities will prepare you for even the most formidable career ventures.

Of course, the private sector can provide highly complex and challenging opportunities too, but the number and nature of environmental variables in the public sector is hard to equal.

New policies can create significant operational challenges Recently, the Secretary of State announced an intent to make the systems used in GP surgeries more open, enabling much greater interoperability with hospital systems and much faster access to their data for medical research, driven by a more competitive market for the provision of these systems.

The team tasked with delivering this change must reshape the market and define new technical data and system standards. They must conduct an open procurement process in line with public procure-

SARAH WILKINSON Chief Executive, NHS Digital ment law. They must define the needs of GPs in a world in which the way GPs work is changing dramatically. The future of primary care includes much greater use of remote consultations, digital communications with patients and integration of patient-provided data streams – from wearable devices, among other things.

Public sector technologists must manage many stakeholders, high sensitivity in consumers of services and media scrutiny The team must work with anxious, incumbent providers being forced into a new business model, and encourage incumbents making the hugely complex journey into the NHS system. They must navigate the hugely sensitive aspects of acquiring, storing and disseminating highly confidential clinical records to research communities.

They must assure the public on data handling and information security, and keep the media and social media audiences informed and educated and deal quickly with any anxieties or misrepresentations.

And, of course, they must address technical challenges and ensure

the systems delivered are reliable, resilient and performant. Working in public sector technology is an education in managing change in highly complex systems.

The challenges described above exist in one programme, within the agenda of one team, in one organisation, within a huge, pan-government digital transformation agenda.

It’s a rich learning-ground for future leaders of transformational digital change in complex systems Good technologists don’t have to look far for work in 2019. But just understanding technology is an increasingly incomplete qualification for effecting technology-driven change within the complex systems in which we live and work. Give the public sector your skills and commitment for a time and in return it will equip you to work in the highly complex systems of the future.

Read more at businessandindustry.co.uk MEDIAPLANET

NEEDS REPLACING

© GORODENKOFF

Be agile to embrace transformative health tech Technology could help the NHS overcome some of its biggest challenges, from increasing demand to skills shortages – but embracing change requires a fundamental shift in thinking.

I

t ’s no secret t hat t he N HS is under immense pressure to keep up with increasing demand at the same time as coping with dwindling resources.

I n d i a g n o s t ic s e r v ic e s , for example, demand is increasing by 7% annually, and 20% of all pathologists are expected to retire in the next five years.

Neil Mesher, CEO of Philips UK and Ireland, says: “The NHS is recognised the world over as a standard for medical excellence, but the future of this globally revered institution is under threat.

“It is simply impossible for the NHS in its current form to support increasing demand with limited resources.”

Technological solutions don’t always mean replacing humans Technology has the power to address pinch points in the system, which would not only overcome the challenges faced by the NHS, but improve outcomes overall, says Mesher.

The key was augmenting the skills of healthcare professionals to bring about a wholesale change in how services were delivered.

“Many people call ‘AI’ ‘artificial intelligence’, and immediately think about replacing human beings with robots.

“We prefer a p e ople - cent r ic

MEDIAPLANET

approach and that looks at how to best support the NHS’s highly-trained medical professionals with the power of machine learning.

We call this ‘adaptive intelligence’.”

Tech must be integrated to support clinicians He described that as a collection of intelligent and integrated tools that embed into workflows and adapt to the needs of clinicians.

“It’s about using technology to provide the right information to healthcare providers and to quickly identify patterns in a way that best supports those needing care,” says Mesher.

P a t h o l o g i s t s , fo r e x a m p l e , spend hours upon hours looking at potential colon cancer tests, knowing that 75% will be negative.

Yet it is possible to train an AI a l gor it h m to ‘r u le out ’ t ho s e samples, leaving physicians free to concentrate on the 25% of images more in need of their time.

Integrated, digital patient records could save money and improve patient experience When it comes to processes, simply digitalising healthcare records could not only free up clinician time but improve care pathways and overall patient experience as well as save money.

Technology has the power to address pinch points in the system, which would not only overcome the challenges faced by the NHS, but improve outcomes overall.”

“This is one of the areas where AI can improve things drastically,” says Mesher, adding that 75% of NHS data was stored on systems that did not talk to each other, making it easier for information on patients’ health to fall between the cracks.

“Ultimately, digitising health ser v ices, look i ng at dat a set s through AI and joining up information about each unique patient can help people live healthier lives.”

In the near future, it will be possible to use existing ICU monitoring equipment to set up remote monitoring stations and even tell staff which patients might suffer a heart attack before it happens.

Such i n it iat ives tack le sta f f shortages and improve outcomes and pathways, while, almost as a by-product, cutting costs.

Adoption needs acceleration across the NHS The barrier to implementation, however, isn’t building the technology or even proving its worth, but the almost glacial speed of adopting new ways of working.

INTERVIEW WITH: NEIL MESHER CEO, Philips UKI

Mesher descr ibed t he N HS In novation Accelerator, which supports the national spread of innovation by sharing best practice and creating a pre-approved list of tech providers, as ‘very exciting’.

But, he went on, it didn’t go far enough to bring about the wholesale redesign of services and workflows needed to truly embrace what AI and other technology has to offer.

Technology plays a role, but healthcare providers also need to be agile in how services can be designed, located and delivered so as to make the best use of innovation.

“It requires a fundamental shift in thinking. We need to change the nature of the sausage machine because we w il l be feeding it different cases that require different treatments.

“As a country, we have a huge opportunity here. We have four of the world’s top 10 universities focusing on life sciences, we’ve got huge NHS data sets and we have a world-leading position when it comes to AI,” says Mesher.

That window of opportunity, though, will not last forever. If it is not seized upon soon, the UK could lose its place at the forefront of the med tech revolution and all its potential healthcare system benefits. The time to act, he concluded, is now.

Written By: Amanda Barrell

About our Future Health Index

The 2019 Philips Future Health Index (FHI) explores the impact of digital health technology on patients and healthcare professionals. In the UK, 72% of healthcare professionals use digital health technology or mobile health apps and 35% use AI technologies within their healthcare practices. AI is mostly used for staffing and patient scheduling (56%), but in the UK it is still not widely used in areas that affect patient outcomes. Only 26% of UK healthcare professionals use AI in diagnosis, for example, compared to the 47% global average. For more trends about digitisation and AI in UK healthcare, please visit: philips.com/futurehealthindex

Sponsored by

Read more at philips.co.uk/healthcare

BUSINESSANDINDUSTRY.CO.UK

9

AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET

NEEDS REPLACING

© RIDOFRANZ

Small businesses and the need to get #Cyberaware Earlier this year, the world celebrated a rather special birthday – no it wasn’t another royal, it was actually the World Wide Web (WWW), which turned the big three zero (30).

What started in in 1989 has now turned into a place of boundless possibilities that has transformed the way that we communicate, socialise and do business.

S

ome small businesses have certainly benefited from the digital ‘big bang’ with the platform economy allowing owners to move away from traditional bricks and mortar shops into new and exciting markets across the globe.

At t ack s l i ke t h i s, f i r s t a nd foremost, cost small businesses money. Cyber breaches cost the average small business £25,700 while government stats show that the annual cost to business of cybercrime is £21bn a year.

Cybercrime has targeted two thirds of small businesses There is a dark and sinister side to t his newly gained reach, however. For those small firms making the leap online, they are opening themselves up to relentless and ever-changing cybercrime.

Mastercard, Google and Facebook have all fallen victim to hackers putting at risk millions of customers worldwide.

High profile episodes like these may give the impression that smaller firms are immune to such attacks but that’s far from the truth. Despite the vast majority of small firms (93%) taking steps to protect their business from digital threats, two thirds (66%) have been a victim of cybercrime.

Cybercrime can halt operations This nefarious behaviour brings more than just a monetary cost, with it taking up time and causing reputational damage. Attacks can force businesses to suspend operations while the problem is fixed.

Where customer data has been breached, time will have to be spent dealing with the resulting complaints and resolving disputes. Even if you’re insured, you’ll still have to go through the process of assessing the damage and making a claim.

Despite the risk of cybercrime for our small fi rms, we still hear of some businesses not being aware of the risks of cybercrime and not taking steps to protect themselves

10 BUSINESSANDINDUSTRY.CO.UK

A quarter of small firms admitted being a victim of ransomware attack while the same number admitted being hacked.”

MIKE CHERRY National Chairman, Federation of Small Businesses

and their customers’ data. Evidence of this came through last year with the introduction of the General Data Protection Regulation (GDPR).

Our research showed that almost a fi fth of small fi rms were unaware of the changes a month before they were due to come into force. This digital awareness gap extends to cybercrime and how it can impact a business.

of information hackers are chasing.

Phishing was the number one type of cybercrime reported by our members who had experienced a cyber-attack with over half saying this had been committed against their business.

It’s not just about data theft though – small businesses are also targeted for crimes such as extortion (r a n s omw a r e at t ac k s) or t he hijacking of a business’s computer to enable cybercrimes to be committed elsewhere.

A quarter of small firms admitted being a victim of ransomware attack while the same number admitted being hacked.

25% of small businesses victim to ransomware For a self-employed gardener or someone running their own hair salon, they may well think they don’t have data t hat is wor t h stealing. The truth is that data, such as customers’ names, addresses and contact details, is exactly the sort

SMEs need cyber security support from larger firms Businesses certainly have a responsibility to get ‘Cyber-aware’ but there is a wider need for a joint approach to cybercrimes across the private and public sectors. There should be an accepted principle that those best-placed to improve cyber

security should do the most.

I nte r ne t s e r v ic e p rov ide r s, s of t w a re develop er s, web s ite de s i g ner s a nd s e a rc h en g i ne platforms are all much better placed than individual SMEs or consumers to strengthen cyber resilience.

A good example of this principle in action is tech firms making products more cyber-secure. By building in resilience at the design and development stages, it will reduce the risk for small firms using those products.

We want to see more small fi rms take the brave step into the digital world and harnessing the transformational power that it can bring. By working together we can make this happen and put an end to keyboard criminals.

Read more at businessandindustry.co.uk MEDIAPLANET

© IMAGE PROVIDED BY AVAST

Over half of today’s workforce would rather take a pay cut than be tied to the office “Working 9-5, what a way to make a living”. While the words of this Dolly Parton song will forever be immortalised, today the 9am to 5pm workplace is a thing of the past. Whether it’s flexible hours, remote working or perks such as gym memberships, businesses now have to offer additional benefits to keep their employees engaged and happy at work.

S

mall- to mid-sized businesses already face an uphill battle to attract the best talent, but offering these types of perks can be a challenge.

Avast Business surveyed 2,000 employees at small and mid-sized businesses, which illustrate how modern employer and employee attitudes have evolved, but not always compatibly so.

Mobility over money: 52% would prefer to take a pay cut rather than be restricted to working in an office. A further 12% would choose the flexibility of working from home over an office – even if they were offered an increase of 25% on their salary to be in the workplace.

A happy workforce: When asked about the benefits of being allowed to work remotely, over a third (34%) said it made them happier, with 32% claiming that it makes them enjoy their job.

MEDIAPLANET

A productive workforce: Flexibility can also have a positive impact on quality of work. 38% of employees claimed to be the most productive when working from home, compared to 35% who felt they were the most productive in the office.

New ways of working = new challenges While the benefits of granting employees f lexible and mobile working are clear, there is a risk to all this freedom – the potential security dangers to which employees open themselves, and their employers.

While one in five employees are increasingly stating that they are the most productive when working in public spaces like a café or library, less (18%) are concerned with the security implications that this could have.

Unsecured Wi-Fi networks can expose users to cyberattacks If staff are accessing sensitive data

or logging into business accounts through unsecured Wi-Fi and without using a Virtual Private Network, this puts the business at risk of a cyberattack. There is also risk of a data breach should an employee save sensitive information to a desktop that then gets stolen, especially if passwords aren’t unique and complex.

Business owners also have a responsibility. The research found that 38% don’t receive the technology support they need to work safely from home or in a public place. If employees are enabled to work remotely, it is employers that need to equip them to do so safely.

Three tips for mobile workforce management: Keep an open mind: Flexibility and mobility are becoming increasingly popular, yes; but that doesn’t mean that this is the case for everyone. Speaking to your employees about how and where they like to work will not

GUY OAKLEY SMB Online Security Expert, Avast Business only make them feel like they’ve been listened to, but will also serve as a means to ensure the security requirements to support this flexibility are in place.

Educate your employees: An organisation is only as secure as its weakest link. Employers need to educate and emphasise their staff on just how they can keep company data and IT property secure, and ensure it’s clear to employees that they have a responsibility to adhere to the company security policy.

Provide the right support: Small business owners need to provide security measures for mobile workers such as Virtual Private Network solutions for use on open Wi-Fi connections and anti-malware endpoint software for all company and employee Bring Your Own Devices. Employers should not leave it up to employees to provide their own security for company devices.

Whilst soft benefits like increased flexibility with hours and location of work can increase employee satisfaction and productivity, there are very real security issues that need to be addressed. Businesses need to prov ide the tools that enable flexibility in a secure way, ensuring employees whether they work remotely or from the office are equally supported.

Sponsored by

Read more at businessandindustry.co.uk

BUSINESSANDINDUSTRY.CO.UK

11