Gerard  Grech  CEO,  Tech  City  UK      @TechCityUK  @gerardgrech    Sept  2016  

Technological  disruption  vs.  Enablement    

Who  are  we?  1.  programmes  |  2.  policy  convening  |  3.  advocacy    

-­‐  Founding  stage  -­‐  20,000+  UK  sign-­‐ups  -­‐  17,000+  in  training  

-­‐  Later  Stage  -­‐  £1.2bn  raised  -­‐  £1.bn  on  the  LSE  -­‐  10  acquisitions  

Most  comprehensive  annual  analysis  of  the  UK’s  Digital  Tech  Economy    

-­‐  Mid  stage  -­‐  Mentorship  program  -­‐  £180M+  raised  

Accelerating  digital  growth  across  North  of  England  

Concierge  service  for  fast-­‐growth  US  tech  companies  

Dedicated  Visa  Scheme  for  hiring  digital  tech  talent  

Alliance  between  the  UK’s  many  thriving  tech  clusters  

3 British  Digital  Tech  Economy  is  growing  steadily  Our  Tech  Nation  report  found  out  the  following,  among  other  things:      

£161Bn    

Total  Digital  Turnover*  

+32%    than  the  wider  UK  Economy    

Growing  

Source:  Tech  Na.on  2016  Report,  Tech  City  Uk/Nesta *based  on  58K  iden.fied  Digital  Businesses

@techcityuk @gerardgrech

A  disruptive  innovation  is  an  innovation  that  creates  a  new  market  and  value  network  and  eventually  disrupts  an  existing  market  and  value  network,  displacing  established  market  leading  firms,  products  and  alliances.  Eg,  Toyota,  Crest  White  strips  (P&G)  The  term  was  defined  and  phenomenon  analyzed  by  Clayton  M.  Christensen  beginning  in  1995  

Disruption   Enablement  (or  sustaining  innovation)  

Enabling  technologies  help  existing  companies  to  adapt  to  change,  focused  on  sustaining  innovation  –  higher  profitable  customers  to  drive  more  profits,  often  neglecting  the  base  that  just  wants  a  low  cost  alternative  

@techcityuk @gerardgrech

Financial  Enablement:  Receipt  Bank  Receipt  Bank  works  with  accountants  and  bookkeepers  as  partners  to  bring  additional  efficiency  to  firms  and  to  help  improve  the  client  experience.    

Financial  Disruption:  Nutmeg  Provides  low-­‐cost  online  wealth  management,  makes  investment  expertise  accessible  to  millions  of  people  who  usually  couldn’t  afford  advice  

Insurance  Enablement  :  Go  compare    Enabling  consumers  to  find  better  insurance  deals,  among  other  things    

The  sector  is  highly  competitive.      Well-­‐funded  companies  such  as  Moneysupermarket,  GoCompare  and  Confused  have  deployed  substantial  marketing  budgets  to  build  their  brands,  with  CompareTheMarket  taking  the  lead.    

Insurance  Disruption  :  Brolly    Brolly’s  mission  is  to  re-­‐define  how  customers  experience  insurance.  Brolly  brings  all  insurance  needs  into  one  place  using  AI.    

Publicly  available In  2016

Transport  Enablement:  Karhoo  Also  a  marketplace  platform,  using  existing  cab  companies      

90  days  a(er  its  launch  it  has  33,000  cars  in  London  available  to  users,  with  7,000  bookings  made  through  the  app  every  day. Karhoo  founder  Daniel  Ishag  

Transport  Disruption:  Uber  Marketplace  platform,  enabling  consumers  to  find  drivers  

495  Cities  Worldwide  (London  11th)  

Advertising  disruption:  Unruly      Unruly  is  a  video  distribution  platform  and  a  pioneer  in  tracking  video  sharing  and  delivering  verifiable  video  views  via  paid  media  devices  

Data  set  of  2  trillion  video  views  &  sophisticated  targeting  capabilities,  the  company  uses  historical  sharing  behavior  to  predict  the  potential  for  video  ads  to  go  viral  across  all  digital  

Advertising  enablement  via  a  disruptor:    Acquired  by  NewsCorp  in  2015  –  example  of  traditional  industries  being  transformed  by  disruptors  

Acquired  for  £114million  

News  Corp  harnesses  Unruly  to:  •   Bet  big  on  mobile  and  

video  -­‐    launch  a  new  vertical  video  ad  format  purpose  built  for  mobile  audiences  

•  provide  new  insights  to  its  adver.sers  and  improve  ad  engagement  

Energy  disruption:  Bulb  Energy      A  consumer  energy  company,  focused  on  simplicity  and  trust  

Bulb  offers  just  one  competitive  tariff,  keeping  things  simple  and  cost  effective.  All  renewable  energy.    

Energy  disruption:  PaveGen  The  future  of  flooring  -­‐-­‐  generating  electricity  from  footsteps    

PaveGen  manufactures  tiles  which  generate  electricity  from  steps.    

• Treat  the  project  as  a  separate  unit  • …with  a  different  business  model  and  growth  expecta9ons    • Ask  what  job  do  customers  need  to  get  done?    • Segment  customers  by  job  –  not  by  product,  market  size  or  demographics    • Develop  basic,  low  cost  ways  to  get  the  job  done  

Disrup've  innova'ons  creates  new  markets  and  reshapes  exis'ng  ones  

Disrupting  from  within  your  organisation    Some  tips  from  HBR  

Why  digital  transformation  is  so  important?    Digital  share  of  countries’  overall  GDP  is  on  the  rise  UK  is  the  highest  ranking  according  to  OECD/McKinsey  (2016)  

|    

   Thank  you  for  listening.          Gerard  Grech,  CEO,  Tech  City  UK      Visit  our  website:  Techcityuk.com    Follow  us  on  Twitter:                            @techcityuk                          @gerardgrech