digital transformation scotland 2017
TRANSCRIPT
Secrets to successful organisational
change:
confessions of a change agent
Ann Longley, 23 February 2017
Failure is common: the estimated cost of global tech failure is $3T USD
“By 2018, 70 percent of silo’ed digital transformation
initiatives will ultimately fail because of insufficient
collaboration, integration, sourcing,
or project management.”
IDC FutureScape: Worldwide CIO
Agenda 2016 Predictions
How does this change impact onyour people?
New projectsNew skills, new
behavioursNew colleagues
Is it going to increase or decreaseworkloads?
Is it going to make people redundant?
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Stuart McMillan,
Deputy Head of Ecommerce
Insight & Action
Introduction
• Established in 1981
• 128 Stores in 3 countries
• High quality of execution
• Multichannel
• Website launched 1998
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
What we measure
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
What we measure
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
YOY % DIFF
Clicks Spend Orders Revenue Conversion Rate
PPC 22.30% 0.91% -4.51% 2.31% -21.9%
Email 6.16% 35.65% -25.34% -15.89% -29.67%
Affiliates 3.60% 72.89% 4.18% 13.49% 0.6%
Struq 238.55% 162.70% 232.61% 280.68% -1.76%
Paid 25.47% 2.32% 0.16% 8.30% -20.18%
SEO 9.95% 0.96% 6.89% -8.18%
Schuh
Cycle -7.74% -26.02% -19.93% -19.81%
Direct 7.08% 40.64% 60.06% 31.34%
"Free" 8.86% 10.84% 20.99% 1.82%
Totals 16.63% 4.95% 14.06% -10.02%
What we measure
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
• Sale vs. full price
• Sell-through
• Checkout abandonment %
• % of customers entering checkout
• Site speed
• Errors
• Session duration
• NPS
• NES
• User Generated Content
• Competitor activity (inc. traffic)
• Blog views
• Social Media interaction
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Revenue
TrafficRevenuePer Visit
ConversionRate
Average order value
AverageSellingPrice
Items per
Basket
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Cost ofSale
Time on site?
Interactions?Pages viewed?
Useful?
Interesting?
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Drowning in a sea
of information
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Case study 1
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Case study 2
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
ROI
&
MVI
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Knowledgeis nothing without
Understanding
Spend time and money on
people, not tools.• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscothttps://www.kaushik.net/avinash/the-10-90-rule-for-magnificient-web-analytics-success/
• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Stuart McMillan,
Deputy Head of Ecommerce
Thank You
Harnessing Technological
Opportunity for Real Business
TransformationBill Gemmell, Head of Professional Services, PS&E
23/02/2017
• Translating Opportunity into Tangible Value
• Human Focused Change
• Impactful Analysis
• Digital Leadership
“It has afforded me something that I have lost. Memory. I can ask Alexa anything and I get the answer instantly. And I can ask it what day it is twenty times a day and I will still get the same polite answer.”
Asset Management(Tech Forge)
GISManagement
(Map Info)
Document and ContentManagement
(Excel)
WorkScheduling(WebAspx)
Case Management(Siebel CRM)
Information Management
(Xpress)
Project and RiskManagement
(Project Vision)
Contact CRM(Siebel CRM)
Work Order Management(Civica Flare)
Work Order Management(Siebel CRM)
Work Order Management(Symology)
SpecialistControl Systems
(ASLAN)
Case Management
(Ocella)
SpecialistControl Systems(Traffic Lights)
GIS Management
(Cartology)
WorkScheduling
(Total Mobile)
Contact CRM(Tunstall)
Project and RiskManagement
(Verto)
Work Order Management(TechForge)
Work Order Management(Total Mobile)
Project and RiskManagement
(Covalent)
WorkScheduling(EGenda)
WorkScheduling
(Care Manager)
Contact CRM(FirmStep)
Contact CRM(Lotus Notes)
Case Management
(Axia)
Case Management(Foster Care)
Case Management
(ICS)
Case Management
(Raise)
Case Management
(Si-Dem)
Asset Management(Caspar)
Document and Content
Management(Goss ICM)
Document and Content
Management(Northgate EDMS)
Document and Content
Management(File Shares)
Council Property
Community Safety & Emergencies
Environmental Protection
Consumer Affairs
Transport and Infrastructure
Planning and Building Control
Information Technology
Adult Social Care
HRManagement
(Carval)
InformationManagement(Capita One)
InformationManagement(Capita eStart)
Information Management
(Core IMS)
Information Management(CAF - Excel)
Information Management
(Homelessness d/b)
InformationManagement
(Registrar)
Asset Management (Axiell)
Asset Management (Symology)
Asset Management (Civica APP/Flame)
Asset Management (Siebel CRM)
Asset Management (Centenial)
InformationManagement
(EDMS)
InformationManagement(Land Terrier)
Information Management
(Gower)
InformationManagement
(Erimus)
HRPensions
HR SAP Payroll
Booking and Ticketing(TLMS)
Booking and Ticketing
(Blackbaud)
Finance and Procurement
(Caspar)
Finance and Procurement(Northgate
iWorld)
Finance and Procurement(Northgate eBenefits)
Finance and Procurement
(Esker Deliveryware)
Finance and Procurement
(Intech - Fraud)
Finance and Procurement
(Credita)
Finance and Procurement(Capita Axis)
Finance and Procurement
(SAP FI)
Case Management
(IAS)
Child Social Care
Education Services
80 ©2017 LEIDOS. ALL RIGHTS RESERVED.
We need Digital Leaders who are:
• Bimodal
• Team Players
• Pioneers
• Humble
• Driven
81 ©2017 LEIDOS. ALL RIGHTS RESERVED.
Forget your job description. Turn everything you do into a transformation project. A project with a beginning, middle and end. A transformation project has an outcome you’re striving for. A job description has no end in sight, it’s a never-ending Mobius strip - you can’t escape its confines.
Digital Leaders understand this. Are you one?Can we help you be one?
Digital Transformation is About People
by Karl Smith @UserExperienceU
CEO Paradigm Interactions Inc.
Avoid getting trapped in limiting
technology solutions
“As Technologies come and go, Customers are eternal”
How you start will determine how you end
• Understanding the Issue (what is the problem being solved, don’t try and fix symptoms)
• Understanding the Context (how it is used, who uses it, does product or service meet the user requirements)
• Understanding the Market (competitor landscape, market imperatives, business risks and equality rights)
• Defining Knowledge Gap (the gap between what is provable knowledge and what is assumption)
• Define Baseline Metrics (core current metrics of situation)
• Define KPI's (core target metrics of future situation from Baseline Metrics, post deploy)
Only then Define the Methods and Processes
Nathan FulwoodStrategy Director & FounderStrategic Creative Consultancy
The value of brand Engagement & experience How to get it right, quicker
B r a n d i s a r e l a t i o n s h i p
WHO YOU ARE WHO THEY AREYOUR STORY D THEIR STORY
YOUR ARTIFACTS N BELIEFS
YOUR INVITATIONS A ASPIRATIONS
CULTURE R BEHAVIOURS
BELIEFS B WANTS & NEEDS
PRODUCTS VALUES
PERSONALITY LOCATION
O R G A N I S AT I O N A U D I E N C E
W i l l th i s engage my audience?Content, advertising, propositions,
services, products
T H E K E Y Q U E S T I O N
POINTOF
SALE
MARKETING
COMMUNICATION
CUSTOMER
SERVICES
MOBILE
AND
DEVICES
INFORMATION
GATHERING
WEBSITE&
E-COMMERCE
SERVICE
COMMUNICATION
SEARCH
DATA &
INSIGHTS
SOCIAL
MEDIA
FRIENDS &FAMILY
WORD OFMOUTH
AGENCIES&
SUPPLIERS
INTERNAL
STAKEHOLDERS
B R A N D
D E S I G N S P R I N T S
‘Greatest hits’ - Google Ventures Sprint Process - http://www.gv.com/sprint
You can pack business strategy, innovation, creativity, behavior science and design thinking into one week.
DAY O N E D AY T W O D AY T H R E E D AY F O U R D AY F I V E
A G R E E O N T H E M O S T I M P O R T A N T Q U E S T I O N
DAY O N E D AY T W O D AY T H R E E D AY F O U R D AY F I V E
E X P L O R E P O T E N T I A L S O L U T I O N S
DAY O N E D AY T W O D AY T H R E E D AY F O U R D AY F I V E
T E S T W I T H F I V E C U S T O M E R S
T H E C O S T O F D E L A Y
Prioritise the most important project questions and gain immediate feedback.
Value stream map - http://blackswanfarming.com/cost-of-delay/
£150,000 per week lost in delay.
A S T R O N G BRAND:
Aligns your organisation with the needs of your
customer and gives focus and consistency
Gives you plenty of hypotheses to test and learn from
Translates your business purpose into something your
audience can engagewith
I n p u tInternal leadership, management and employee insight
External client and stakeholder insight Communications ecosystem audit
Competitive/comparative set analysis
PurposeWhy you do what you do
Ambit ionWhat you aim to achieve
Proposition, brand story & themesWhat you will be known for (clients, stakeholders and talent)
OutputCreative platform/brief
Engagement principles and tacticsIdentity and design framework, education and guidance
Content, storytelling andmessaging
ValuesWhat you believe in
Brand character (visual & verbal)How you express yourself. What if feels like to work with you.
Personal insights provide the substance,authenticity and inspiration for a compelling and
sustainablebrand.
Informs decision-making throughout process.
Early engagement/consultation helps create
ambassadors for process and outcomes.
Gives your brand energy and drive that all
stakeholders can connect with.
Ensures communications aredriven by
audience benefit.
Structures content generation,storytelling
and messaging.
Defines the human side of your business.
Who you are and what’s important to you.
Differentiates you and helps all audiences
connect rationally and emotionally with
the experience and service you offer. The
brief to influence and inspire all creative
and communicationdecisions.
Motivates employees, builds personal
connection with clients and creates a
platform for profile inyour
marketplace.
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978
Imagine a better world and create it.
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
4
?
1. Think about problems not solutions
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
4
Ask real people about their problems
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
4
What?
How?
Why?
When??
?
?
?
???? ???
???
?
??
?
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978
Generative Product Research Generative Market Research
Questions
How can we solve the problem?
What form should this take?
How important is the design?
What’s the quickest solution?
What is the minimum feature set?
How should we prioritise?
Methods
Solution interview
Contextual inquiry/ethnography
Demo pitch
Consulting
Competitor analysis and usability
testing
Questions
Who is our customer?
What are their pains?
What job needs to be done?
Is our customer segment too broad?
How do we find them?
Methods
Customer discovery interviews
Contextual inquiry/ethnography
Data mining
Focus groups*
Surveys* (open ended)
* Not recommended
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
2. Phrase your customer problems in their
words
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
I need new
functionality
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
I worry about
my daughter at
night
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
Problems?
?
?
?
???? ???
???
?
??
?
Needs
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978
> 95 % of companies Marketing
and Development managers don’t
agree on what a Customer need is
Source: Stratgyn.com
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
3. Define your customer needs
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
Customer need:
Bill needs to
have peace of
mind that his
daughter is safe
when she
travels alone at
night.
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
Problems?
?
?
?
???? ???
???
?
??
?
Needs
Prototypes
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
5
How might we?
Sharing travel info
from app
GPS tracker in neck
Auto text message
every five minutes
Push notifications
Don’t let girls out after
dark
Long piece of
thread
Follow herBreadcrumbs
Learn how to relax
and ignore it
Monitor her vital signs
Panic button
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978
Evaluative Product/Market ResearchEvaluative Product Research Evaluative Market Research
Questions
Is this solution working?
Are people using it?
Which solution is better?
How should we optimise this?
What do people like / dislike?
Why do they do that?
Methods
Paper/Clickable prototypes
Usability
Hallway
Live
Remote
Functioning products
Analytics
Questions
Are they really willing to pay?
How much will they pay?
How do we convince them to buy?
How much will it cost to sell?
Can we scale marketing?
Methods
5 second tests
Comprehension
Conjoint Analysis
Data mining/market research
Surveys* (closed)
* Not recommended
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978
Problems
1
6
?
?
?
?
???? ?
?
?????
?
??
?
Needs
Prototypes
Build
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1
6
?1. Think about problems
not solutions
2. Phrase your customer
problems in their words
3. Define your customer
needs
+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978
0131 561 7300
© Ryanair 2014
171
Always Getting Better: the engine of change in Ryanair
– Where we came from
– Why we changed
– How we are getting there
– What we have achieved
– What still puzzles us
Transformation in f l ight
© Ryanair 2014
Europe’s No 1 Coverage
172
Europe’s Lowest Fare
No. 1, Traffic – 119m p.a (+12%)
– grow to 200M by 2024
No. 1, Cover – 200 airports
No. 1 on service – on time/low cancellations
33 countries
1,800+ routes
340 x B737-800’s
330 x B737s on order
© Ryanair 2014
Useful
Future
Today
Likeable
Become As Liked As We Are Useful
Become as Liked as we are Useful
© Ryanair 2014
177
2000 – Launched its first website.
– Built by two 17 year old school students
Ryanair IT – Where we came from
© Ryanair 2014
Europe ’s Favour i te A i r l ine
178
– Within 3 months it was taking 50,000 bookings a week.
© Ryanair 2014182
2014 - Change in Ryanair – Always getting better.
– Improve the flying experience.
– Broaden the appeal.
– Improve our product.
– Keep the focus.
– Embrace Digital.
Vision
© Ryanair 2014184
Ryanair Labs –AGB program powered by IT.
Open Nov 2014
State of-the-art digital & IT innovation hub
New focus on customer first
What we do?
– External customer facing channels – website, booking engine, mobile apps.
– Internal systems.
– Bring innovation and technology to the travel industry.
– Leveraging machine learning & Big Data
Currently > 200+ staff
Ryanair Labs – core strategy
© Ryanair 2014186
New mobile app
New website
Personalisation
Increase ancillary sales
Create new products
Become the Amazon of Travel
The chal lenge
© Ryanair 2014
• New Website & App• Reduced Fees• GDS & Corporates• Business Plus• Family Extra• Free 2nd Bag• Allocated Seating
• Car Hire• Native App• Social & Blog• Reduced Sports Fees• Customer Charter• 3rd GDS Partner• US Website• New interiors - Dec• New Uniforms - Dec• Defibrillators - Nov• Hold A fare - Oct• New Web & App - Oct• More Primary Apts• Insurance - Oct
Year 1 Year 2 Year 3
• Rate my Flight • Auto Check in• My Ryanair Club• One Flick Purchase• Bag fees• Event discounts• New - Leisure Plus• Improved – Bus. Plus• Digital Vouchers
Always Get t i ng Be t te r T rans fo rms Ryana i r
© Ryanair 2014
The Solution
• Customer First
• Cross-functional teams
• Bias towards actions
• Don’t hate - iterate
© Ryanair 2014189
Ability to react rapidly
Early delivery of features
Frequent delivery of features
Faster feedback on products
Faster feedback on processes
Why Agile
© Ryanair 2014
DevOps & the 4th
Industrial Revolution :• Speed of delivery to production has evolved from a single delivery/week
to multiples in a day.• Information radiators, build screens & dashboards now in prominent
areas of development floor, moved from infrastructure to web monitoring.
• Traditional Infrastructure engineers are being reborn as Operations engineers – higher up in the Systems stack.
• We are now comfortable with trending towards a cloud-first strategy for any new app deployments.
Agile in Ryanair : Frequent releases
© Ryanair 2014
MOBILITY SECURITY BIG DATACREATIVE
LABS
DATA VISUALIZATION
PersonalizationAirline
Technology
RESEARCH & DEVELOPMENT
Agile in Ryanair : Embrace new ideas
© Ryanair 2014
Responsive Website:
– 10M visits on Smartphone
– 6M visits on Tablet
– 1.5M visitors daily
Native App launched in March 15
– 18.5M downloads on iOS and Android
– 4.8M active users monthly
– The number of bookings per day on the app has increased 700%• Now responsible for 15% of overall bookings
8
Has it worked? – The Data
© Ryanair 2014
Continuous Struggle
Rapid Delivery v UX/UI
Reaching for the perfect productLong term viewDaily releases
MVPSimple Designs
© Ryanair 2014205
Home to hotel bedroom and how we can make it better
Location aware communications
Better digital integration with airports
Inflight entertainment & Wi-Fi onboard
Support for wearables
Digital Wallets
Amazon of Travel
Where next
© Ryanair 2014
Leave you with 3 simple messages :
Personalization is the force behind the
change in Ryanair
Open platforms power innovation and
facilitate customer satisfaction
Get it going, lots of frequent change
required - do not be afraid
I f you remember 3 things
Business Creation/Expansion/
Employment
Big Dataand KPIs
Council Facility Usage
Transport
Care of People
Community SafetyBuilding Stock
Tourism
Energy Consumption
Education
Improve workforce
effectiveness, with
secure digital networks,
devices and tools that
transform ways of
working
Get closer to
customers and
communities through
innovative use of digital
technology
Cut out wasteful
processes, with
technology like
Internet Of Things or
Big Data & Artificial
Intelligence
It's not just about online transactions , we need to look at the steps of every frontline process and search for unlockable data to drive efficiencies and change
212
The Digital Layer Cake
Transform
DIGITAL
LEADERSHIP
Deliver – DIGITAL SERVICES
Disrupt – Culture, Business Rules, Customer Interactions, Data,
Discover – FOUNDATIONS :The Technical Platform
Digital Council Digital Places
CONFIDENCE
I understand my business needs
•Cost Reduction
•Improve service
•Streamline process
I understand Digital
•The terms
•Methods
•The technology
•The impact
•Innovation
I have the necessary skills
•In house
•Personally
•I can and have authority to innovate
Technology is easy to use
•For Citizen
•For staff
•For me
Its Secure
•But not business prohibitive
Digital will Support & deliver
•Outcomes
•citizen
•staff
•council
Ambition
How else can I used Digital to ..
•Reduce Cost
•Improve service
•Streamline process
Digital underpins
•Redesigning process
•Break Tradition
•Creating new opportunities
•New business models
•New Revenues
How can I hone skills to create
•New Careers
•New culture
•Authority and environment to innovate
Technology adapts & evolves to support
•Citizen
•Staff
•Council Services
•me
Security at the heart
•Understanding
•Mitigated steps to protect assets
Digital Evolution Support & deliver
•Outcomes
•citizen
•staff
•council
delivering better outcomesDigital can deliver savings at the same time as improving quality of life
Quality
Of
Life
Public Services Economy
Increased
Economic
Activity
• Increased
Participation
• Community
Empowerment
Inward
Investment
• Reduced Failure Demand
• Proactive rather than
Reactive Services
• Better Partnerships
• Improved Efficiency and
Cost Savings
• Improved Decision-Making
• Improved Market
Insight
• New Markets
• Innovation
Opportunities
• Business Growth
• Improved Achievement and
Lifelong Learning
• Better Health and
Independence
• Reduced risk of crisis
• Reduced inequality
Improved
Resiliency
and
Sustainability
Digital Place
ANDREW DOBBIE FOUNDER/CD/MD
JILL MOFFATHEAD OF DIGITALPROJECTS
EMMA STRAIN ACCOUNT DIRECTOR
JADE MACFARLANE SENIOR DESIGNER
PETER PELOSI SENIOR DESIGNER
EMMA FAULKNER GRAPHIC DESIGNER
ASA RODGER GRAPHIC DESIGNER
DAN SIMMON GRAPHIC DESIGNER
JOHN HYLAND ARTWORKER
HANNAH DAVIDSON PA / OFFICE MANAGER
STEPHEN WEIR OPERATIONS DIRECTOR
LORNA BROWN RAYMOND MCSTAY CREATIVE SERVICES DIRECTOR COMMERCIAL DIRECTOR
STEVEN HADDEN DESIGN DIRECTOR
STEPHANIE AITKEN ACCOUNT MANAGER
DEXTER DOG BARKETING MANAGER
MIKE BROOKE HEAD OFSTRATEGY
EUAN BROWN ACCOUNT MANAGER
HIBA OMAR ACCOUNT MANAGER
JUDE KERRIGAN ACCOUNT DIRECTOR
MEET THEMADEBRAVE®
TEAM
NIALL MACFARLANE DIGITAL DESIGNER
DAISY SWAIN DIGITAL DESIGNER
FRASER HARKNESS WEB DEVELOPER
LEWIS DORIGO WEB DEVELOPER
KEENAN ERWINSOCIAL MEDIAMANAGER
STEPHANIE BOYLE CONTENT STRATEGIST
SHORTLISTED
for Scottish SME of the year
SHORTLISTEDConsumer EngagementAward
(SpringbankWhisky)
WINNER
Outstanding Contribution
by a Young Business Leader
The Scottish Business Awards
2016
HeraldDigitalAwards
2016
Inspiring
City Awards
2014
WINNEREntrepreneur of theYear
SHORTLISTED
forEntrepreneur
of TheYear
WeDo
Scotland
2015
Entrepreneurial
Spark’s
Entrepreneuring
Awards
2015
SHORTLISTEDGlasgow’s Favourite
Business
Evening Times Awards
2015
WINNERCorporate /Promotional
Literature (50 Years ofVango)
SHORTLISTED
forEntrepreneur
of TheYear
The Scottish Creative Awards
2015
The Scottish Business Awards
2015
WINNERBest Use ofTech for Tech’sSake
SHORTLISTEDTech Business ofthe Year
The Chip Shop
Awards
2016
The Scottish Business Awards
2015
WINNERBest PerformingBusiness
1–10Employees
Glasgow Business Awards
2013
SHORTLISTED
for Excellencein
Communications
Glasgow Business Awards
2014
SHORTLISTED
for Best NewBusiness
of theyear
The Scottish Business Awards
2014
SHORTLISTED
for Young BusinessPerson
of theYear
Glasgow Business Awards
2014
SHORTLISTED
for Digital: Website
Scottish CanalsWebsite
The Scottish Creative Awards
2016
OUR AWARDS
A brand is the thing that humanisesyourbusiness, so that people can connect with it the way they would a friend.
PurposeWhat is the heart & soul of the brand?
What does it bring to someone’s life? Why does it exist?
PersonalityWhat characteristics or traits does the brandhave?
Tone of voiceHow does the brand talk
& communicate?
StyleHow does the brand look?And what does this say about them?
VisionWhat does it want to become in the future? Where is it going?
ValuesWhat do they believein?
Name /LogoWhat’s the brandcalled?
“We make great computers.They’re user friendly, beautifully designed, and easy to use. Want to buyone?”
“With everything we do, we aim to challenge the status quo. We aim to think differently. Our products are user friendly, beautifully designed, and easy to use. We just happen to make great computers. Want to buy one?”
WHY
HOW
WHAT
WHYWe exist to inspire creativity in everyone.
HOWWe refuse toplay it safe and never accept mediocrity.
WHATWe design, brand, code and share. And we just happen to have an awesome time doing it.
“Youdon’tknow itall, and younever will (but hey, that’sok)”- AndrewDobbie, MadeBrave®
If you remember one thing
George Elliott – Driving Collaboration & Seizing OpportunityDigital Transformation Conference, Our Dynamic Earth, Edinburgh, 23 February 2017
George Elliott - snapshot
▪ Grant Thornton - 15 years (7 as a partner)
▪ Over 25 years working in the tech sector:
▪ Listed companies - Main Market (3) AIM (6)
▪ 3 IPOs – Wolfson, Craneware, Cupid
▪ Latterly focused on early stage and fast growing companies
▪ Board level/executive responsibility for:
▪ Business development
▪ Sales & marketing
▪ Production
▪ Finance
▪ Since 2007 non-executive chairman/director of 18 companies
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 280
George Elliott - currently non-executive chairman/director of
▪ Craneware plc Software Non-executive chairman
▪ Calnex Solutions Ltd Hardware Non-executive chairman
▪ Cooper Software Ltd ERP consultancy Non-executive chairman
▪ Optoscribe Ltd Component manufacturer Non-executive chairman
▪ Visionware Ltd Software Non-executive chairman
▪ Par Equity Holdings Ltd Venture capital Non-executive director
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 281
Presentation is based on
▪ My personal observations and experiences over the last 25 years working with tech companies that transformed themselves
▪ Why tech is important to Scotland
▪ The culture within Scottish tech companies and why it needs to change
▪ What Scottish tech companies can do to compete and win on the global stage
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 282
George Elliott - innovative tech companies that I have worked with
▪ Services “Claim to fame” Current Status
▪ McQueen First multi-lingual, multi-currency call centre in Europe Acquired by Sykes
▪ Hardware
▪ Calluna Invented the 1.8 inch hard disk drive Dissolved
▪ MicroEmissive Displays Invented the world’s smallest OLED micro display Dissolved
▪ Wolfson Audio chip designed into Apple’s iPod and iPhone Acquired by Cirrus
▪ Calnex First 100G tester for Ethernet synchronisation Private company
▪ Optoscribe Manufacture high performance waveguides Private company
▪ Software
▪ Craneware Software and support services for US hospitals Public company
▪ Two Big Ears 3D audio for VR and AR applications Acquired by Facebook
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 283
Why tech is important to Scotland
▪ Scotland has the raw materials:
▪ Deep and long history of innovation and invention
▪ 14 campus based universities - 3 ranked in world top 100
▪ Cost structure and flexible working practices
▪ Ecosystem is growing - incubators, angel syndicates, private equity companies, network organisations, government agencies, etc.
▪ It’s IP based therefore more flexible and less capital intensive than traditional sectors
▪ One of the fastest growing sectors:
▪ Electronics sector in Scotland’s Top 500 companies grew by 63% to >£2b in 2016 (compared with 7% decrease overall) (Source: Business Insider Jan/Feb 2017)
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 284
Why tech is important to Scotland - but!
▪ <50 public companies in Scotland (excluding financial institutions)
▪ Only 4 listed tech companies in Scotland (150 UK):
▪ Craneware, FreeAgent, Indigovision, Iomart
▪ Fast growing companies in Scotland tend to sell-out rather than reach their potential
▪ Building global tech companies is not in our DNA – yet!
▪ We should be punching above our weight:
▪ Skyscanner and FanDuel should be the norm
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 285
Scotland’s ecosystem is not yet configured to reach its potential
▪ Universities
▪ Research rather than commercially focussed
▪ Stakes in spin-outs much higher than in the US
▪ Government and other agencies
▪ “There is a dire need for Scotland to draw up a 30-year blueprint to achieve its immense economic potential.” (Source: Sunday Times 5 February 2017)
▪ Lots of initiatives but not coordinated
▪ Business community
▪ Needs to become more entrepreneurial and commercially focussed
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 286
Seizing the opportunity – “The State of European Tech 2016”, report by Atomico, November 2016
▪ The future is being invented in Europe
▪ Europe has acquired real traction in what is termed “deep tech”
▪ Artificial intelligence - machine learning, data mining, big data, speech recognition
▪ Frontier hardware - robotics, drones, radar, 3D printing, nanosatellites
▪ Virtual and augmented reality
▪ The internet of things - wearables, smart home, smart city
▪ Why Europe?
▪ Moving from the consumer internet to the industrial internet
▪ Europe has the technological, financial and human assets to flourish in the digital economy
▪ Cultural change – companies are now determined to shape their own destiny
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 287
How do we change our culture?
▪ Concentrate more on building companies rather than products
▪ Think bigger - global rather than local
▪ Focus more on the market than the technology
▪ Get “real” about planning
▪ Recruit experienced people early
▪ Develop your leadership and management skills
▪ Get out and talk to potential customers, influencers, competitors, etc.
▪ Learn from successful companies
▪ “Fail” fast
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 288
How to compete and win - simple questions
▪ What problems/issues does your company’s technology solve?
▪ Do you know your addressable market, the key drivers, competitors, trends, etc.?
▪ How should you position yourself?
▪ Is your business scalable?
▪ What are your channels to market?
▪ How do you protect your intellectual property?
▪ How do you recruit, retain and motivate the staff you need?
▪ How do you reverse into the future?
▪ Do you know what you are worth?
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 289
Craneware – case study
▪ Keith Neilson and Gordon Craig founded the company in 1999
▪ Identified an opportunity for automating billing requirements in US hospitals
▪ IPO in 2007 on AIM
▪ Software used by >25% of all registered US hospitals
▪ Chargemaster Toolkit® ranked No1 product for revenue cycle by KLAS since 2006
▪ Headquartered in Edinburgh with US offices in Georgia, Tennessee, Massachusetts and Arizona and employees over 200 staff
▪ Market capitalisation IPO £32m, currently £334m
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 290
Two Big Ears – case study
▪ Abesh Thakur and Varun Nair two Indian nationals founded the company in 2013
▪ Company founded to commercialise research work undertaken by the founders on 3D binaural audio technology and augmented reality systems at the University of Edinburgh
▪ May 2014 Neil Heywood and George Elliott put in seed capital and joined the board as non-executive directors
▪ Company used social media to bring its technology to games developers who were developing content for VR and AR applications.
▪ Main competitor Dolby
▪ Founders presented at seminars and trade shows in California to present technology and meet key players in the industry
▪ Company purchased by Facebook in 2016 for an undisclosed sum. Founders now work for Facebook
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 291
Conclusion
If you have a technology/product that:
▪ provides a solution to a real problem for
▪ a large addressable market which
▪ you have worked out how to access
then you should be able to
▪ build a team that will
▪ build a company
that will potentially become a global player
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 292
Hunting for growth – Technology sector’s enduring appeal
The Technology sector has delivered the highest median
earnings growth historically (2003-2012).
The sector is also expected to deliver the highest growth
median earnings growth in the period 2014-18
Structural drivers of growth with Technology pervasive in all
business sectors
Consistent earnings growth, particularly in Software and IT
services sub-sector.
Sector earnings growth, ex Oil & Gas, Mining and Financials Tech Sector earnings growth
Tech Sector earnings growth, ex-hardware
N+1 SINGER
295
Investing in the UK Technology sector
Highly attractive sector for growth
Relatively small investible universe, even
before ARM Plc’s sale to Softbank (de-listed
6/9/2016)
In the UK, the Tech sector (including
payment companies) represents c. 2% of the
market (Main List and AIM).
As a comparison, in the US, the Technologysector represents c.21% of the S&P 500
UK sector size vs. earnings growth profile
Distribution by market cap
17% of companies (26 companies) represent
83% of market value
Average market cap is £272M but the
median market cap is £41m
Limited investor choice
Gap in the market
No. of companies %Market Cap (£'000) %
Over £1bn mkt cap 7 5% 24,903 61%
£500m-£1bn 9 6% 5,770 14%
£250m- £500m 10 7% 3,192 8%
£100m-£250m 21 14% 3,283 8%
£50m-£100m 31 21% 2,153 5%
Under £50m 72 48% 1,386 3%
Total Tech Sector 150 100% 40,686 100%
N+1 SINGER
296