the business techtrends impacting the channel islands

#C5techtrends2016www.c5alliance.com/C5techtrends2016 Applying the opportunities created by business techtrends

the business techtrends impacting the Channel Islands

minutesper day is the average time a consumer spends using their smartphone

Source: Experian

7000housescould be powered every day with just the energy burned by active users of the Nike+ app

Source: Nike

2020it is predicted that digital natives will be the majority of the population segment in the UK Source: PWC

Source: MIT

it took

for the telephone to reach half of households - it took the smartphone

76 years

10

Source: Get Busy Media

if Facebook was a countryit would be the second most populous in the world after China

20%

Source: Get Busy Media

Over

of worldwide payment transactions are made with a mobile device

This is an overview of the top five trends in technology that C5 believes will change the way we do business in the Channel Islands in 2016 and shape the future of our economy over the longer term. They present wide-ranging challenges and opportunities for local organisations, and include:

1. Working without limits

2. Making data-driven decisions

3. The rise of small and medium-sized businesses

4. The Internet of Things

5. Your journey to the cloud

We work with a range of organisations across the Channel Islands and further afield to understand these trends and what they mean for businesses in our marketplace. In particular, we have tried to understand and explain what these trends will mean in the future and also how they should be influencing policy decisions and your planning right now.

Shaping the landscape of business in the Channel Islands

These five trends are expected to have a significant impact on our economic environment and affect every organisation in Jersey and Guernsey, including our own, so it is very important that we understand how to adapt to them to ensure that they have a positive impact. To support this collaboration throughout 2016, we will be holding regular events to share our learnings in these areas, to gain feedback from local businesses and add to the research we are already doing in our day-to-day work to ensure technology continues to support and improve your business.

Mark Loane - CEO of the C5 Alliance Group Limited

[email protected]

Mark Loane CEO of C5 Alliance Group Limited [email protected]

what are the business

techtrendsand do I need to be aware of them?

technology is changing

everything

Mobile working is something that most businesses have had to adapt to. At its simplest, this can be the need to accommodate employee travel, at its most complex, ‘mobile working’ now means employees around the world, all seamlessly linked online. But this is just the start - the trend is now evolving and growing, from mobile working to flexible working, which means people are now working not just from different global headquarters, but also from anywhere, at anytime. The possibilities created by new technology are driving a huge change in how we work, with the measure of an employee being his or her output rather than hours spent at a desk in the office.

What does this mean for Jersey and Guernsey?

New employment regulations are encouraging employers to consider more flexible hours and terms; it’s time for businesses to get more creative about how their people work. The increase in the use of social networks also means that remote collaboration is now part of people’s everyday life, both at home and work where productivity is increased by leveraging the right tools. Most firms, including SMEs, now have staff spread across different jurisdictions and, for some, this has

been resolved not only by remote working options but also by using collaborative platforms such as Yammer, which enable conversations that can be dipped in and out of. Local regulators also view collaboration platforms positively as they appreciate the openness they promote. To really benefit from these trends, collaborative channels need to become an intrinsic part of business processes.

It is important for businesses to provide a balance of collaborative working environments while also providing spaces for staff to work productively without distraction. This balance will be the key to optimising a productive and connected workforce. Data security concerns over the use of cloud technologies that can help to achieve this balance are becoming less of an unquantified risk, as various platform providers are meeting independently verified standards and are publishing these results openly. However, as with all services, a risk assessment should be conducted. One of the most important aspects of this trend is how it will impact competition for talent in the job market – companies offering similar packages will begin to use flexible working as a benefit to acquire the best people. If your business has any resource or recruitment concerns, this issue needs to be top of your list, as should investment in IT training for staff to ensure high levels of adoption.

working anytime anywhere

technology is making us

mobile

more connected devices than people

There are now

In the UK, there were

Source: Cisco Internet Business Solutions Group

Source: Get Busy MediaSource: IronKey

4.2mhomeworkers in Jan-Mar 2014The highest rate of homeworking since comparable records began in 1998

1.3bntelecommuters by 2015

x7

Source: survey of 1,000 office workers in the UK and Germany commissioned by Imation in 2014

1 in 4employees admitted breaking security policies when working remotely

of devices contain work-related data, including confidential emails and files

75%

Source: E. Glenn Dutcher

11-20%Remote workers are

when performing creative tasks

more productive

Source: Office for National Statistics

Every second of every day, a huge amount of data is being stored, however very few businesses are analysing much of it. In the finance industry, regulation has driven vast data collection and collation. The question now is what can we learn from it? How do we continue to collect and collate data in a way that does not slow us down and provides flexible future-proofing against further regulatory requirements? In 2016, firms will invest more in developing unified platforms providing an easily adaptable ‘one version of the truth’. Many will use the cloud to leverage Big Data services, analytics and self-service dashboard capabilities for their cost- effectiveness and ease of use, thereby partially replacing the need for extensive teams of specialist data scientists.


Whilst some businesses in the Channel Islands already have systems that provide a single view of the truth of their customers, many do not. The more comprehensive data is, the more options are available to make data-driven decisions that have benefits for customers and, ultimately, profitability. However, data can be very complicated and exist in silos, limiting the value that can be extracted from it. Companies need to prioritise the

collection and analysis of their data, treating it as part of their business processes so it’s flexible, easy and useful.

Businesses are repeatedly told about the huge volume of data available to them, including everything from internal patterns and trends to external data from social media and GPS. Unfortunately, extracting meaning from this data hasn’t always been as impressive. In 2016, and beyond, the sheer speed with which data can be collected, categorised and analysed for useful information will pick up pace. Near-insights will become normal, and businesses in Jersey and Guernsey will rely on this speed and depth of insight to make decisions and gain advantage. Thanks to powerful cloud software that deploys machine learning, company data can be analysed and transformed into interactive visuals that identify patterns and generate the insights that businesses are looking for.

data-driven decisions we’ve all captured it, now what?

Companies need to prioritise their data

Data collection needs to be part of the business process

the universe of business data is expanding

infinitely

of the data that exists today was created in the last 2 years Source: Forbes

Source: BTSource: Fathom

0.5%of data is currently analysed

only

Source: IDC

20-35%Poor data can cost businesses

of their operating revenue

90%

of business leaders surveyed believe that customer experience will be their primary basis for competition by 2016

Source: Gartner

89%

of decision-makers surveyed anticipate significant impacts on storage systems as a result of the “Big Data” phenomenon

75%

Source: Waterfront Technologies

doublesThe total amount of data being captured and stored

every year

Thanks to the evolution and availability of online services and cloud computing power, new SMEs (Small and Medium Enterprises) can outperform large organisations from day one. SMEs are competing with much larger firms by leveraging technology that makes their operations and delivery of service more efficient. Innovative use of new and existing technology is enabling SMEs to disrupt traditional industries while also enabling them to develop customer relationships in a way that larger organisations can struggle with.


If you’re an SME, investing in technology and IT support should be your number one priority, particularly platforms that will benefit your productivity, efficiency and customer experience. You should also be considering wider markets – are you limited to Jersey and Guernsey or can good technology and automated digital processes allow you to look further afield? The SMEs that we work with are making dramatic changes to their business models in order to be able to export globally. SMEs can also create an effective footprint in other countries and quickly globalise to supply new markets in a way that

would not have been possible before. Being smaller means you can be more agile and react faster to the market.

Larger businesses need to rethink their competitor analysis and approach to innovation – your biggest threat isn’t necessarily your biggest rival firm. Small companies using technology well and adopting cloud services faster than you, can quickly become a problem you didn’t expect. Big businesses can benefit from ‘being more SME’, and smaller ring-fenced innovative teams or labs with one simple goal and autonomy can provide some of the advantages of the agile new SME competitors.

the rise of the SMEs technology is enabling small businesses and teams to disrupt and punch above their weight

Investing in technology and IT is the #1 priority

Wider markets should be considered

Crucial partnerships can be made unlike before

sizeno longer defines the rules

Source: AT&TSource: Borrell

reduceIT workload by 42%

The cloud has helped SMEs

Source: Microsoft

used email marketing to customers in 2013, a 25% jump over the previous year

of small businesses built mobile optimised websites in 2013

15%

of SMEs already do business in at least six countries; a major transition from a decade agoSource: Oxford Economics

15%

92% of SMEs are using at least

one cloud business solution

Source: SMB Group

41% of small businesses

27% of small businesses have

no IT support

Source: SMB Group

You may have heard of the “Internet of Things” or IoT, possibly the Internet of Everything. In today’s world, there is an ever-increasing number of connected devices – from mobiles and tablets to smart fridges, scales and watches. This significant increase in connected devices is not just confined to consumer goods. Although there are real opportunities to invent and crowdsource new products via Kickstarter or Indiegogo, there are also real opportunities for ideas to be implemented that make a valuable difference to businesses.

Most IoT devices are measuring some kind of data, and often they are producing an awful lot of it. The trick is to act on that data, for example, tracking all the data a car is able to record could be used for preventative maintenance if it was being analysed properly. Ideas such as this have been put to good use to improve public transport in Jersey, with the recent creation of ‘Track My Bus’, which includes an accurate real-time map of the positions of all the buses and detailed information about any bus stops near to the user.


The Channel Islands present an ideal test bed for IoT projects. In addition to an urban guerilla project measuring air quality that is being planned for 2016, it is anticipated that further ideas will come to fruition in the next year.

Although this is not an area that immediately springs to mind in terms of trends that affect our biggest sector, it’s one that nonetheless has the potential to go global. Gartner has made some bold predictions in this space. However, even if they are only partly right, we will see some progress towards this even more connected world in 2016.

If your business has any kind of machinery or conditions in which recording and analysis of data will allow you to make better decisions, it is a good time to be looking at IoT.

Internet of Things

internal departments + external teams = better results

By 2020, the connected kitchen will contribute to

at least

15% savings in the food and

beverage industry

will be required to wear a health and fitness device as a condition of employment by 2018

is set to surpass the PC, tablet and phone market combined by 2017

employees 2m

1.5 to 1

The IoT market Connected devices outnumber the world’s population by

Source: Gartner

Source: Business Insider Source: Cisco

Source: Gartner

$10-15 trillion to global GDP over the next 20 years

IoT has the potential to add

Source: General Electric Source: CSG

94%of all businesses have seen a return on their IoT investments

‘Should we use cloud’ is no longer the question – the answer is ‘yes’ and the real question is ‘how’? The term ‘cloud’ can now be used to refer to many different things. From public to private and software-as-a-service (SaaS) to platform-as-a-service (PaaS), there is no one way to use and benefit from cloud technology. In 2016, and beyond, the focus will be on businesses creating an approach to using the cloud that is embedded and intrinsic to their IT solutions.


In the Channel Islands, partly because of the dominance of the finance industry, the biggest concerns about cloud use are typically related to data sovereignty and security. With regards to security, it is now widely accepted that data is actually more secure in the cloud, provided businesses are using a major service provider such as Google, Microsoft or Amazon. The security of data in the main vendor clouds is better than many companies can afford to implement by themselves. Given larger providers are permanently being put to the test, they have the most advanced security solutions and governance in the world, offering your data maximum security that would be unaffordable in-house, alongside providing

world-class physical security at their data centres.

Cloud technology from such providers reframes the question of digital data security: it isn’t about where the data is held physically, as that data can be encrypted and is unintelligible to everyone except the holders of the access rights. If you keep the authorisation safe, your data will be safe. Businesses may be concerned that they are legally obligated to keep their data on the Island - this is not the case. There are no legal constraints to the location of data from the JFSC, GFSC or data protection authorities, and the message from the regulators (who themselves are starting to use Microsoft Azure) hasn’t changed in recent times – you are still responsible for your data and, as the Data Protection Commissioner has stated, where you store your data is a risk assessment that should be carried out wherever it is stored.

In 2016, and beyond, insistence on in-house infrastructure where there is a secure cloud-based alternative will be seen as backward – we are already receiving requests from large organisations, including banks, to move to Azure. The cloud is, quite simply, the future of IT. The question is whether Channel Island businesses will get on board with this reality and embrace the opportunities it brings.

cloud becomes the most

secure choice

Big business is now embracing the cloud

of businesses run less than a fifth of their applications in the cloudSource: RightScale

Source: RightScale

Source: CISCO

Source: IBM

tripled

The amount of traffic hosted through cloud networks will be

by 2017

$79.1bn

The global market for cloud equipment will reach

by 2018

68%

businesses have a hybrid cloud strategy, up from

74% percent in 2014

Source: RightScale

82%

88% of businesses are using public cloud

63% are using

private cloud

Source: RightScale

of organisations surveyed are running applications or experimenting with infrastructure-as-a-service

93%

If you would like a member of our team to support you in considering these questions, please email [email protected]

discussion points for

your board and your business

Are your current activities aligned to these 5 techtrends? Are they incorporated into your strategic thinking?

Will you be developing new business models to tap into them?

How much potential do these techtrends have to disrupt your organisation?

What are the capabilities your organisation needs to leverage techtrends to make a positive impact?

Do these techtrends make you reconsider who your competitors are?

1

2

3

4

5

6

7

Do these techtrends have the capability to change more than just your activity? Will they impact on your purpose and culture?

If you embraced all 5 of these techtrends, what impact would this have on the future of your business?

To read more about the 2016 Channel Island techtrends and to receive further information, please visit:www.c5alliance.com/c5techtrends16

Enquiries +44 1534 785400

Email [email protected]

Address 25-26 Esplanade St Helier Jersey JE2 3QA Channel Islands

www.c5alliance.comChanging the way the Channel Islands use technology for positive impact

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the business techtrends impacting the channel islands

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