Bridging the CIO-CMO gap

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This is a guest post by Peter Duffy, CTO, Sumerian

British consumers are increasingly bombarded with a constant stream of companies attempting to bring their latest deals and products to their customers' fingertips.

This has fantastic implications for both parties involved, however in order to achieve this, those in the background must organise themselves and collaborate effectively.

With digital marketing expected to consume an extra 8% of IT budgets in 2015, both the CIO and CMO recognize the need for increased collaboration.

According to a recent Accenture survey, 83% of CIOs want to align and interact with CMOs, and 69% of CMOs feel the same way.

Although almost half of CMOs and CIOs believe their relationship has improved since 2013, there is still an operational gap to bridge. As it stands, 45% of CIOs agree that multi-channel marketing is too complex for one platform, while 42% of CMOs believe that technology is 'siloed' and too difficult to use for cross-channel experiences.

A good CMO is constantly looking for new and innovative ways to engage the customer, especially digitally, seeking to create compelling and dynamic digital engagement in order to support market leading multi-channel customer experiences.

This helps a company keep its competitive edge. However, the CMO can sometimes be so effective at this that it can temporarily plunge the IT Operations side of a company into chaos.

The annual shopping event Black Friday grabbed the headlines this past year for all the wrong reasons. Not only did we see shoppers reduced to savages in the face of reduced prices, there were also a number of major IT failures across the large retailers, resulting in losses of hundreds of thousands of dollars.

One example of this was Best Buy, who suffered two outages on Black Friday. Its IT infrastructure could not cope with the unprecedented mobile traffic, forcing the retailer to temporarily shut down its website in order to restore performance.

For a company to proactively cease online operations on the busiest shopping day of the year, the issue must be serious. This problem was not confined to the U.S., as we saw Tesco's U.K. website go down as soon as its Black Friday deals were launched.

A number of retailers on Black Friday failed to plan properly for their potential IT needs. Having an unstructured approach to IT capacity planning can leave a company vulnerable, through a lack of accurate understanding of its present and future capacity, to outages, losing them money in down-time, or last-minute overspending in order to maintain business as usual after an unforeseen emergency.

New developments in capacity planning can help, by enabling the CIO to have comprehensive insight into the company's IT estate, despite the rapidly changing nature of digital marketing initiatives.

The kinds of issues experienced by online retailers disappear, and the potential impact of changes in demand on a company's IT estate become clear, allowing the CIO and CMO to function with much greater freedom and efficiency in their shifting roles. Capacity planning effectively bridges the operational gap between both officers.

With the growth in digital, IT now underpins the whole customer experience, therefore its performance is critical to business growth.

A recent IBM study revealed that 88% of CEOs want to get closer to their customers. Assuming they're not turning up on their customers' doorsteps, this will be through digital means. Furthermore, the spread of digital touch points and the need for access at any time, any place and on any device, means that IT infrastructure is now incredibly complex and dynamic, comprehensively leveraging technologies like cloud and virtualisation. This means that capacity planning is rising in importance.

Cloud-based capacity planning services enable CIOs to deal with the growing cross-over from the digital aspirations of the marketing department, enabling them to maintain control and effectively manage an organisation's IT estate.

It allows the CMO much greater freedom and insight into how to adapt the business' IT infrastructure to suit the market.

With a strong capacity planning function in place, companies can welcome the changing digital landscape, and foster an improved relationship between IT and Marketing.

It will ensure the efficient alignment of IT resources to meet the CMO's needs while at the same time deliver the transparency and understanding required for both the CIO and CMO to successfully realise their joint ambitions.

Together, they can deliver a cost effective, highly flexible digital platform that delivers on customer experience and revenue growth for the business. 

Want more women in technology? Alter the entire pipeline.

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During London Technology week a panel on how to get more women into technology highlighted the importance of education, mentors and a change in industry attitude.

During London Technology week I had the privilege of chairing an Interop panel on 'How to get more women into technology' featuring the industry's best and brightest on the issue of diversity in the technology space.

The discussion highlighted many important issues surrounding the lack of women moving into C-suite and engineering roles in the technology industry.

Participating in the discussion were Russ Shaw, founder of Tech London Advocates, Claire Cockerton, founder and brand ambassador for Innovate Finance, Jacqueline de Rojas, GM northern Europe at Citrix, Arabel Bailey, MD at Accenture, Sarah Luxford, co-founder of Croydon Tech City, and Wendi Li, product manager, viral growth at TransferWise.

It was the consensus of panellists that the changes made to the UK curriculum will be monumental in encouraging young women to pursue a career in tech, but a shift also needs to be driven from the top down - the whole pipeline needs to change.

People tend to feel safer and more familiar when surrounded by people like them - so without women in high up positions in companies, it will still be difficult for girls to imagine themselves in these roles, and see these positions as attainable.

Young girls need role models, and as pointed out by Li, everyone is aware of Steve Jobs and Mark Zuckerburg, but where are the women?

It has been widely discussed that an increase of diversity in the industry will be a driver for development and innovation for businesses.

Taking up the position as the only man on the panel, Shaw showed disdain over the lack of women in the industry, calling it "shocking" and labelling it a "human issue" as opposed to purely a business issue.

But the main problem surrounding the lack of diversity is people's attitudes - those already at the top are largely white middle class men, and they need to stop hiring people who look like themselves.

But despite campaigning for increased diversity in the industry, statistics are still showing very little change.

The advice given to women in the audience for advancing their own and other's careers was finding or being a mentor.

The art of mentoring has been a hot topic surrounding the issue of women in tech over the last year, and all of the panellists agreed that women should be seeking others in the industry who can help and advise them in their career paths, whether in a startup or a more traditional technology company.

I bring up a quote quite often mentioned in the women in tech community - there is a special place in hell for women who don't help other women.

Although speaking out about these issues is one of the most important ways of initiating change, none of them want to be doing the same thing next year.

This should no longer be an issue. 

Europe: What are we doing to lose our title as the Earth's e-waste capital?

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This is a guest blog by Niclas Rydell, director of product certification, TCO Development


According to the United Nations University's (UNU) 2014 Global E-Waste Monitor report, Asia generates the most electronic waste at 16 million metric tonnes per year. However, this equates to only 3.7 kg per person, whereas Europeans generated some 15.6 kg of e-waste per person. That's over four times more than their Asian counterparts, earning Europe the title of the e-waste capital of the world.

Photo: TCO Development

What is e-waste?

E-waste comprises of all discarded electronic products ranging from household appliances such as fridges, heaters and lamps, to personal digital devices including computers, displays, smart phones, tablets and televisions. The UNU has determined that over 40 million tons of e-waste is generated globally each year, and this is expected to rise to 50 million by 2018.

Why is it such a complicated issue?

IT production supply chains span the entire world; whether it's mining for rare metals in South Africa, tin mining in Indonesia, assembly factories in China, or purchasing points virtually traversing the globe. Manufacturing organisations exist across multiple borders, and as such, it is difficult for individual governmental authorities to make a tangible impact on their environmental responsibilities.

Consumers' insatiable appetite for new electronic devices means that the life-span of products is considerably short as consumers look to swap devices as soon as new innovations become available. A report from the International Labour Organization marks e-waste as the world's fastest growing stream of waste from domestic or industrial areas. The general lack of legislation or enforcement surrounding its disposal means that most of it is being discarded into the general waste stream.

The many different types of materials IT products contain, such as plastics, tin, aluminium, flame retardants as well as heavy and precious metals make it hazardous and expensive to treat in an environmentally sound manner. The United Nations Environment Programme (UNEP) found that only 15-20 percent of discarded E-waste is recycled in a responsible way, and estimates that up to 90% of e-waste is being illegally traded or dumped, mostly in developing countries. Recovering e-waste is an environmental issue in itself in less-economically developed countries, as for example, the harmful substances found in the plastics used to wrap copper wires are released into the atmosphere during the low-temperature burning process used to recover the metal.   

Where there's a will, there's a way

In order to solve the growing e-waste crisis, there needs to be a joint effort across borders that truly reflects the global nature of the supply-chain. Multi-national organisations including governmental and non-governmental associations must engage manufacturers to achieve improvements to the current e-waste situation.

Whilst legislation helps to create legal boundaries for manufacturers to follow, creating demand for products responsibly managed throughout the entire product life-cycle will help drive the innovation required to form a more circular economy. An effective method for facilitating this transformation is to have a way for buyers of IT products to look for third-party managed certification of products with criteria that covers the supply chain from the manufacturing phase to the end-of-life handling of the product.

Rebuilding Europe's reputation, and raising the bar

It is fitting that in spite of its reputation, Europe is fast becoming a catalyst for change. In 2012, the European Commission revised the Waste Electronic and Electronic Equipment (WEEE) directive so that by 2016, member states are obliged to collect 45 tonnes of e-waste for each 100 tonnes of electronic goods on sale over the three years prior. This rises to the option of either 65 tonnes, or 85% of all e-waste generated by 2019.

In February 2015, the UK Government implemented the new EU public procurement directive, urging buyers to include social and environmental factors when choosing IT equipment, and to make use of third party certifications to verify product compliance with those demands.

Europe is now moving in the right direction and leading the charge through active legislation. Buyers of IT products in Europe have perhaps the best opportunity in the world to directly influence brands towards continued improvements in environmentally responsible manufacturing through to end-of-life handling. If purchasers collaborate in asking their IT suppliers what their methods are of ensuring to ensure that their products do not end up in uncontrolled e-waste dumps overseas, perhaps Europe will finally rid itself of its title as the e-waste capital of the world.


Is the purpose of 3D printing to inspire a better future?

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It seems like whenever attending a technology or gadget conference there will be some kind of 3D printing product surrounded by plastic knickknacks it has been desperately churning out for the duration of the show.

I have a feeling these plastic curios are the reason I've felt uneasy about 3D printing, especially following my DIY 3D printing experience where my own attempt to produce a useless plastic object went wrong.

It seems futile, because the objects printed at shows have no function whatsoever other than to be multi-coloured, look pretty and prove the printer actually does something.

So when I had a chat with Jesse Harrington Au, programme manager maker at Autodesk, about the great potential 3D printing has to change the future of several industries, it started to change my mind.

It's not all about manufacturing or rapid prototyping, and Harrington Au mentioned the huge impact 3D printing has had on the dentistry industry, with crowns now being 3D printed rather than the previous method they used to use.

"It's about letting the machines help you and letting the algorithms assist you," points out Harrington Au.

"They can rely on exact data."

There is also great potential for this tech to be used in medicine, for activities such as 3D printing titanium implants.

But most importantly we were talking about the potential it has to inspire a whole new generation of people into technology, engineering and manufacturing careers, and break the current gender barrier into STEM subjects.

"We're seeing a large amount of artists starting to adopt this, designers starting to adopt this, as well as kids in the classroom." says Harrington Au.

He explains that when he first began using computer-aided design (CAD), the sort of software used to make 3D models that can be printed, the learning curve was steep.

But now it's different, for kids now engineering solutions are more common and it's making STEM more accessible, and creating diversity in the space.

"What you're going to see come out of it is much more rapid innovation," says Harrington Au.

"As people keep seeing this tech grow they keep thinking of ways to make it better." 

A tale of two retailers: and Bata

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How internal culture can prevent a project management methodology from scaling

A short while ago I was at a roundtable with two retailers,, a soon to be multinational online retailer, and Bata a global retailer with brick-and-mortar worldwide and a responsive website.

Bata was looking to expand its digital reach to become a bit more like in terms of its online reach, so it could depend less on real estate and more on its brand.

It was highlighted that although the stores were successful in most locations, there were regions where digital is needed to supplement stores in order to maintain sales and draw the audience in.

After some discussion it became clear that it wasn't Bata's technology standing in its way, but an anti-agile internal culture making omni-channel push difficult.

The representative from mentioned how its organisation moves forward and grows through the "fail fast" method - try something new and if it doesn't work try something else.

But Bata's rep highlighted that Bata is so big that it makes change difficult, especially on a global scale. This means the failing fast tactic would not only be too risky, but would meet resistance from some members of the organisation.  

They said boohoo will have the same problem when it grows, because the weight and legacy infrastructure will eventually lead to a lumbering dinosaur company that moves at a snail's pace.

I said not if they can make that agile nature scalable.

I've spoken to a lot of established organisations who have claimed still to think of themselves as startups because the internal function and feel of the workforce is the same as when it only comprised of 10 people.

Yes, it is harder to move 100 people in the same direction than it is for a smaller team, but not if you still have the agile "fail fast and try something new" nature that's so important when adopting digital technologies.

As Spotify's head of labs Gary Liu says, scaling culture is one of the most important challenges to get right during organisational growth, as you need to be able to pick yourself up and change fast to be truly adaptable.

To many it seems that sometimes managing an organisation's culture can prove a bigger challenge than running its projects. 

How one tech startup benefitted from Cameron's trip to Washington DC

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Last week a number of technology startups joined Prime Minister David Cameron in Washington DC to raise awareness of the growing threat of cyber security.

The visit saw our PM meeting President Obama to solidify a partnership to tackle cyber security.

Unfortunately the dozen or so UK startups didn't get to meet Obama personally, but one startup in tow told Computer Weekly that it got a heck of a lot out of the trip.

While Alastair Paterson, CEO of Digital Shadows wasn't bumping fists with the leader of the free world, all the startups did get time with Cameron one morning of the short two-day visit.

"I think the fact the government is giving cyber security serious attention makes a big difference," he said. "Being associated with the UK PM shows we're pretty serious business, so that credibility is important in the security industry."

Paterson said the trip provided a great networking opportunity, where Digital Shadows and others were able to switch business cards with senior members of the US government, as well as government defence experts as well. Meanwhile, Digital Shadows - which focuses on provided cyber security for the financial services sector - also had the chance to rub shoulders with the likes of the American Bankers Association.

"The US is the place to be for cyber security, it's a huge market and it's very mature compared to the rest of the world."

For Digital Shadows, the trip was about raising the company's profile because it is about to launch its business out in the States, set up offices in San Francisco and hire around 15 US employees.

But it wasn't all about growing its own business, but being part of the ongoing war against cyber breaches, and Paterson said it was important to foster ties with the US.

"It's an issue we can't solve unilaterally as one country," he said. "It's important for our security in the UK and for the growth of our countries."

One of the political outcomes from the trip is the US and UK agreeing to set up a joint cyber squad and conduct a series of cyber "war games" to test each other's resilience.

Paterson said these cyber war games are an extension of what is already happening in the UK financial sector. Banks and regulators have got together as part of a Waking Shark programme to achieve similar learning goals when it comes to cyber weakness.

The visit also resulted in the announcement for more support for UK companies exporting their cyber security products to the US, with a UK representative with a background in the industry now based in Washington to help UK startups sell their wares.

"I'm hoping it's not a one-off," Paterson said, referring to the trip as a whole. "These things can just happen once and that's a bit of a shame because there's now a bit of a community of people. We need to build that community out from the UK. The 12 companies got on well and learnt a lot from each other on the trip, I'm very keen to keep that going."

Huddle secures $51m series D funding

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This week saw the cloud-based collaboration platform secure $51m in series D funding. Is it close to IPO? It's too soon to tell, but the company has gone from strength to strength over the last eight years; from London-based startup in 2006 to opening offices in San Francisco, New York and DC. <

The money will be used on further expansion in the US and Europe as well as skills, with Huddle co-founder Andy McLoughlin saying he wants Huddle's headcount to increase from 175 to break through the 200 mark.

The company's secure government accredited software is used by 80% of central UK government departments, local authorities and NHS organisations, as well as the likes of Barnardos, NASA, P&G and the National Grid.


Five minutes with Huddle co-founder Andy McLoughlin

How long has this investment been in the pipeline?

We starting working on the D round earlier this year but were surprised at how quickly the round came together. All of our existing investors participated and the new lead, Zouk, moved incredibly quickly to lock in its investment.

It's obviously very exciting, but after we've closed each subsequent venture round, my co-founder and I would always joke that this is when the real work starts! We're in the middle of a huge hiring round and there seem to be dozens of new Huddlers joining every month at the moment.

A large chunk will be invested into the product and technology organisation. There is a ton of great stuff we want to build in 2015 and the new heads will allow us to get through the list even faster than before. The rest of the money will be spent scaling up our sales and marketing teams in the UK and US.

What does this mean for Huddle's future?

The future looks bright! This money means that we can continue to invest heavily in the parts of the business that support winning, supporting and making our customers successful. Expect to see lots of great new customer logos, new product launches and new partnerships in 2015.

When did you stop being a startup?

Personally, I don't think we should ever stop being a startup - it's a state of mind rather than reflective of the size of your business. Startups are scrappy, agile, fun and do whatever it takes to succeed - I'd like to think we still embody those values. These days we're a little bigger and have a few more processes in place, but we still think like we did when we were ten people.

What are you doing to help other startups?

Both my co-founder and I are active angel investors and advisors to other early stage businesses. We work closely with UK government to shape policy to help small businesses grow. We're also mentors at London-based accelerators like Seedcamp and Techstars.

What are the biggest startup challenges you've had to overcome?

Hiring great people is always hard. It was hard when we started in 2007 because nobody knew who we were, we didn't have any money and working for a startups wasn't cool like it is now. It's hard in 2014 because the London startup scene is really hot, we're trying to hire a ton of people and other companies keep trying to pinch our staff!

What will be new for 2015?

We have pretty clear plans for 2015: we'll be hiring across our development, customer success, sales and marketing teams and building a load of great new features on our web, desktop and mobile apps. Expect to see some big partnership news and lots of new customer announcements. It's become a running joke because we say this every single year, but 2015 will be the biggest year for Huddle yet!

Will there be a TechCity South, East or West?

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Two weeks ago a TechNorth programme which aims to connect six digital clusters in the north was launched by Deputy Prime Minister Nick Clegg.

The cluster aims to connect Manchester, Leeds, Sheffield, Liverpool, Hull and the North-East (Newcastle, Sunderland and the Tees Valley) in a bid to create a technology hub similar to that of Tech City in East London.

But what about the rest of the UK, asked Bonnie Dean, chief executive of Bristol & Bath Science Park? She fired this question at the minister of state for universities, science and cities, Greg Clark MP who took up this new role after the last Cabinet reshuffle.

Speaking at Innovate UK's conference in London today, Clark dodged the outright question by saying he had a funding pot of £12bn over the next six years called Growth Deal. The idea behind Growth Deal is clusters can pitch for this funding which comes directly out of central government thinking along the lines of 'if you had control over this money - rather than central government - what would you do with it?'

Clark told delegates how he'd just completed the first Growth Deal in Exeter, for a £97m super computer project which is also funded by the university and local businesses. The super computer will be used by the Met Office due to its data handling excellence, but what Clark called the world's best super computer will also be located on the Exeter Science Park.

"This is a good example of a national investment, combined with a devolution of local funding which can produce something that can be excellent," said Clark.

So maybe we won't be seeing a number of Tech Cities popping up all over the country, but Clark encouraged Dean's Bristol and Bath Science park to make a pitch to government for a share of £12bn in the second round of funding which is about to begin.

Marketing and IT: One sure way to annoy IT people

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This week I learnt an important lesson. Apparently one way to stir up a room full of IT people is to say that traditionally IT has been a blocker to innovation. To be honest, I'm a little surprised I got out of that room unscathed.

While at Oracle Openworld in San Francisco this week, I attended a retail breakout session where three retailers from three different continents discussed a wide range of challenges they are currently facing.

Craig Demerit the COO and CIO, of the US fashion retailer Tillys said his company had merged its e-commerce team with marketing in order to focus on the customer.

I find this topic very interesting - and you can read my news story here - so when it came to the Q&A, being a cynical Brit I put up my hand to ask a follow up question and I led with "It was interesting to hear what you're doing, because it has been common for IT to be a blocker rather than an enabler..." Queue frosty laughter from a couple of people in the room and stares from the rest.

But Demerit agreed with me, saying the company works faster by being sat side by side, and the company no longer has nine months of bureaucracy talking about whether it should develop something.

After the session ended, a gentleman in the audience turned to me with a smile and said: "So do you not like IT people?" Awkward - I work for Computer Weekly!

When he found out I was a journalist he understood my risqué question a little more and we started talking. I said I thought aligning the marketing and IT department seemed like a good answer to the disconnect between the two, where IT often says "no" because marketing has no idea of the ramifications of what they're asking for.

This IT guy then said he would hate to work with marketing people - so maybe it's not a trend we're going to see widespread then?

But what we did agree on is that retail IT is one of the most innovative industries out there, comparing to markets like financials services or public sector which are bogged down under regulations, retailers are freer to enthusiastically say "yes" to a lot more. And looking at companies like Tillys, and our side of the pond, Marks and Spencer or John Lewis, these companies are definitely transforming their marketplace and the act of shopping from the ground up. 

Government needs to play the Game of Thrones

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Game of Thrones (soundtrack)

Game of Thrones (soundtrack) (Photo credit: Wikipedia)

Government is dependent on the big IT players, but they need to stand up for their share of power.

Speaking to Duncan Jones principal analyst serving sourcing and vendor management professionals at Forrester, he believes Cabinet Office minister Francis Maude is wrong in his approach to getting rid of the oligopoly of IT giants that currently supply to government.

"We are dependent on them," he said. "Oracle, SAP, Microsoft - they make great products. They're spending the most money and using the brightest people. You hurt yourself by not using them."

Talking about the recent news that the government confirmed plans to standardise document formats across the public sector, by rejecting Microsoft's lobby to be the preferred standard, Jones said he didn't think this was the right thing to do.

But he said that government needs to change its relationship with the big suppliers so they don't act up and end up mistreating the customer.

He used Game of Thrones and The Wall as an analogy of the predicament government is in at the moment, saying that government can stay south of The Wall where it is "sunny, but they have no power." Or they go North of The Wall towards the territory of startups and the "practioners of dark arts of open sourcery."

Like with all unknown ventures, it can be dangerous to venture North of The Wall.

Jones said that government must straddle The Wall and do a bit of both.

It then needs to take a high level holistic approach to developing the relationship. He said there is no point arguing with a big supplier over a small price raise, "You're always going to lose that argument," he said.

It's not a price war, but a long-term relationship and Jones said threatening to migrate to another platform may escalate the issue.

"Software companies want quarterly figures, but they need long term customers," added Jones.


Information sharing in government - stop scaremongering and let it happen

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The Telegraph has reported that the government is considering implementing an information sharing system across Whitehall.

An information system similar to customer databases used by Amazon and Tesco would share citizen details across departments and the wider public sector, in hopes for government to become more agile and intelligent.

Details could include: driving licenses, criminal records, university details, social information and energy consumption.

Aggregating and mining citizen data would allow the government to better monitor economic growth and population movements, identify troubled families and elderly people in need of support, and cut fraud, said the Telegraph.

But the following line in the story angered me:

"It will also trigger fears that data could be lost, in the wake of a notorious error in 2007 that saw CDs carrying the child benefit records of 25 million people go missing in the post."

I feel that this is just needless scaremongering.

Of course IT systems like this need to be secure, but in the cold light of day, digital technologies are far safer than sending a CD full of personal information in the post.

Why are we so focused on the "what if" hypothetical scenarios, rather than the "if we don't" consequences? For instance, across many NHS Trusts, health and social care systems are often not joined up. A child might be on a watch-list by social services because they think he/she may be subject to abuse, but if the child winds up in hospital or with the police covered in cuts and bruises, the two services can't identify this because the services are not joined up. Dare I say the words "Baby P"?

That is a very real, yet extreme example, so let's take it down a notch to the simple act of changing your address. Imagine a world where you fill in a single online form, and all government departments, local councils and associated organisations know you've moved house.

This is the world of joined-up IT services - making life simpler. So stop scaremongering and let it happen.

In the documents seen by the Telegraph, the government stated: "People tend to assume that Government can share data between departments to complete simple tasks, and are surprised to learn that it cannot."

Just please Whitehall, don't hide behind this assumption that people already think this is happening - make sure you are clear with citizens about your plans to avoid another debacle.

Think customer first, not technology first

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CIOs need to be thinking about the end customer and their experience of technology, not just technology for technology's sake, said Eamonn O'Hare, ex-CFO of Virgin Media and Tesco.

Talking to O'Hare this week, he said the top challenges of technology, media and telecoms (TMT) companies is that they're not well managed and often don't think of the customer first. The majority of companies are too engineer and product orientated and don't think very much about the customer - like BT, he said. But there are also the odd company like Sky who have got it right, and managed to package TMT products to customers in a user-friendly way.

You can take this analogy to board-level CIOs.  

At Computer Weekly I'm seeing a trend where IT execs are moving to board-level. Mike Sackman at Argos is a good example of this, he moved from Mitchells and Butlers to a board position at the retailer as CIO two years ago.

I get the feeling this is a positive step, as these companies are beginning to recognise the importance of IT and technology and are making sure it is represented from the top-down.

But O'Hare believes that most CIOs and CTOs in retail and TMT companies want to complicate life within organisations because they don't understand the business.

They can be intellectually arrogant, he tells me, and they want to hold onto power by using technical language and building up "impenetrable walls of IT." If these types of techies sit on the board, it can be difficult to think of the customer first.

"It won't be the classic IT person sitting on the board," he said.

He points to Laura Wade-Gery, poached from Tesco, she is now the board-level executive director, multi-channel at M&S. O'Hare said that you won't hear her use technical terminology - it's all about the "retail experience" or the "home retail experience."

"The last thing you need is someone talking about how the software doesn't speak to the hardware," said O'Hare - you need people who can harness the technology and use it to make the customer's life better. "It's not technology for technology's sake."

Another company which is great at thinking customer first is, of course, Apple. O'Hare said it has managed to get rid of any clumsy digital and techy words and made the customer's life simpler. As have The and eBay.

"Customers just want life to be simpler," said O'Hare. "Customer first, technology second."

Government drives away from Silicon Roundabout investment

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Back in 2012, the government announced to huge fanfare that it was putting aside £50m investment to regenerate Old Street's Silicon Roundabout (aka Tech City) in London.

The money was meant to be used to create facilities for startups and entrepreneurs by building incubator facilities in the East End.

But it has now been confirmed that the £50m earmarked for Tech City two years ago has not been used so it is going back into general expenditure.

City Hall and Number 10 gave Computer Weekly exactly the same response when asked why this money had been withdrawn:

"Given that a permanent solution for the roundabout will be technically difficult and some way off that money has gone back to general expenditure," said a City Hall/Number 10 spokesperson (delete as appropriate.

"It is normal practice for any money that hasn't been spent to return to the Treasury to help reduce the deficit," added Number 10.

Surely that money should be redistributed elsewhere?

According to the statement, the Mayor's team are now seeking alternative funding for a landmark proposal in Tech City and are collaborating on alternatives that might achieve the original objective over a shorter timeframe.

Meanwhile the statement was keen to point out that Transport for London is about to begin work on environmental improvements including landscaping of the Old St roundabout and improvements to the subway and station.

"These improvements form part of the wider work TfL is carrying out across London to deliver the recommendations of the Mayor's Roads Task Force to tackle the challenges facing London's streets and roads. This independent body brings together a wide range of interests and expertise, united in their commitment to major investment in street management and urban design."

So Old Street will have a tidier tube station and pretty flower beds adorning London's "rival" to The Valley?

But does the tech startup scene even need government's help anymore? Alastair Mitchell. CEO and co-founder of Huddle said Silicon Roundabout is currently regenerating just fine by itself. In fact Mitchell moved the Huddle team out of its Old Street offices because it was being knocked down to build bigger offices.

"I'm a big fan of market forces growing funds and investments," he said.

"I think government has missed the trick," he added. "There are far greater ways to drive innovation, not just in Silicon Roundabout but other parts of London, Birmingham, Sheffield, Manchester and also Cambridge. Lots of companies flock to areas of regeneration because the office space is cheaper."

Mitchell said that the Tech City area of London has done a great job of attracting tech companies, incubators, networks and investment. He believes government needs to fix the fundamental problems first -which is  spending more with SMEs.

"They're failing woefully on their objective of 25% of spend going to SMEs - who often operate in areas of regeneration," said Mitchell. "They're not pumping money into the SME economy, which would be the single driver of regeneration."

So rather than one-off funding projects, if government spent money regularly with SMEs - as they have promised to do - there would be less of a need to pimp up the underground and plant daffodils in the middle of Old Street. 

e-Commerce tech provides online magazines with seamless retail channel

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Bauer Media has begun a partnership with Atosho to allow readers of their online magazines to purchase products without having to be redirected to the retailer's website.

Bauer's Mother & Baby website will be the first magazine to implement the distributed e-commerce service, which claims to be the only one available in Europe.

After visiting the website and giving the technology a whirl, it indeed seamlessly integrates the online content and online shopping without needing to leave the magazine to purchase a featured product. When hovering over an icon of a shopping basket, an iframe pops up which effectively gives you a browser within the browser, without opening up a new page.




This means that publishers would not need to worry about the threat of readers leaving their site due to a product they have featured in the online mag.

"We are always looking for innovative ways to enhance our readers' experience and believe that providing them with the opportunity to buy the products they are reading about without interrupting their viewing journey offers real value and is a genuine step forward in joined up e-commerce," said Tracy Holcombe, e-commerce and new business development manager from Bauer Media

Free iBeacon tech for retailers - but do they even know what to do with it?

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A specialist company has announced its ambitious plan to kit out FMCG, alcohol and publishing retailers - big and small - with free iBeacon technology.

Set up in 2013, Appflare has said it will provide the hardware, installation and management of the Bluetooth beacons for free to qualifying retailers for three years, as well as providing a campaign platform to engage consumers, including an app if retailers don't already have one.

Apple's iBeacons technology connects with an application on a consumer's mobile device and can send data to the phone, in the form of marketing messages.

Owen Geddes, Founder and CEO of Appflare said: "Retailers want to get their iBeacon solutions installed by September in time for the Christmas lock-down. Offering the service for free eases the installation process, which is great news for brands that are currently preparing their festive campaigns."

According to Miya Knights, senior research analyst at IDC, the UK is leading the way in beacon technology because it has a high proportion of online consumers, combined with a high smartphone penetration.

Knights believes this free implementation could push forward the technology. "The problem with exploiting mobile in retail has been the total cost of ownership, acquiring, and managing the technology. It's the whole package that needs to go around that kit," she said.

But Knights said that this technology comes with the caveat that there's a lot of background integration to be done around privacy and data analytics.

"Retailers know they've got the technology but perhaps they're not quite sure what to do with it," she added. "They're then very cautious because of consumer sensitivity to privacy issues and they don't want to be seen to bombard them."

The way Appflare intend to benefit from this arrangement is by charging the retailer when a customer engages with a campaign, firstly when the customer receives the targeted message, and then when they make a purchase.

Appflare says that its charges will range depending on the service, from looking after the app location data, through to delivering content and a closed loop reception, the charge could range between 0.1p and 5p.

Stephen Millard, CEO at retail technology accelerator Eccomplished said that while Appflare are being ambitious and removing the barrier to adoption, the retailer will only pay if there is an incremental value to them and their customers.

"Does it help them reduce other costs? Unfortunately today most shoppers wouldn't know what to do or how to use this tech...and neither do most retailers," he said.

Why working out the cost of Scotland replicating Whitehall's IT systems is so difficult

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If Scots vote 'yes' in the Scottish referendum later this year, Computer Weekly has calculated that Scotland could spend over £1bn on replicating the necessary IT systems needed to run an independent state.

Professor Patrick Dunleavy at the London School of Economics stated that hundreds of millions of pounds would be needed to build the necessary government IT systems, but no one has drilled down a final figure.

Computer Weekly has calculated an estimate of how much it would cost Scotland to replicate Whitehall IT systems based on GOV.UK documents and statistics from intelligence company Porge.

But it wasn't easy to figure out. And here's why...

Total Whitehall spend

Firstly, there are still very few definitive figures available for government spending. Research from the Institute for Government revealed last week that HP alone earns more than £1.7bn a year from Whitehall, with its main spender being the Department of Work and Pensions (DWP), and Capgemini also depends heavily on spend from Her Majesty's Revenue and Customs (HMRC). But "significant discrepancies" were apparently flagged up by DWP, and there just isn't the data to go anywhere near finding out what government actually spends on SMEs.

Meanwhile, intelligence company, Porge, which analyses invoices to show what public sector bodies are spending their money on, managed to calculate that central government spent £6.2bn on IT and back office outsourcing between April 2012 and March 2013.

This figure is significantly lower than the total spend figure floating around the internet which varies but can be estimated as up to £16bn. However the figures from Porge are lower because it excludes functions such as IT costs from the police. Additionally, Porge tells us that central government departments generally only disclose invoices down to a value of £25K, so the data would exclude smaller invoices.

So how can we figure out how much money an independent Scottish state may have to spend on replicating Whitehall IT, when we can't get a definitive answer on what Whitehall is spending at the moment?

We still gave it a go...

How much would Scotland spend?

There are still a lot of figures in various government documents, but some quote start-up costs of an independent Scottish state, while others cite annual operating costs, and it's rather difficult to directly compare the two.

Computer Weekly has extrapolated data to deduce it is likely the cost of setting up all the necessary new IT systems for an independent Scotland starting completely from scratch would be £1.6bn.


But Scotland already looks after a number of devolved institutions including police, health, courts and education, yet the country still depends on Whitehall for critical functions such as defence, social security and financial matters.

An independent Scotland would not be able to exist without two of the basic functions of benefits and tax, provided by the DWP and HMRC respectively, so we stuck with those departments and drilled down the figures.

DWP set-up costs

DWP - surprisingly - was easy. The deparment has estimated a one-off cost to build a new social security system could be up to £400m (on top of annual operating costs of around £720m).

HMRC set-up costs

Sadly, DWP was the only department to be transparent with their Scotland set-up estimates. For HMRC a little further digging was needed.

According to a document from the Department of Business Innovation and Skills, Scotland would need to pay around £562m to create a whole new tax regime, but it did not provide a breakdown of IT set-up costs.

According to the same document entitled Scotland Analysis: Business and Microeconomic Framework - in 2011 HMRC's tax collection running costs were £3.6bn.

And according to data from Porge between 2012-2013 HMRC spent around £900m on IT which is 25% of the total £3.6bn figure stated by the Treasury.

Let's assume the running costs for 2012-2013 were similar. And from that we can deduce the annual IT spend for an equivalent Scottish HMRC would be 25% of the £562m total set-up costs, equating to £140m.

And according to The Scottish Government analysis of the cost of introducing and administrating their replacements for UK Stamp Duty Land Tax (SDLT) and Landfill Tax suggests that initial set-up costs equate to around 90% of annual running costs. If the same proportion was applied to the maths above, the total set up costs for a tax IT system for an independent Scotland would be £126m.


For both DWP and HMRC the total one-off IT startup costs equates to £526m. But other institutions would also need to be replicated.

According to Porge, DWP and HMRC roughly came to a third of total annual Whitehall IT spending in 2012-2013.

But Scotland already have a number of devolved functions. It would not be unreasonable to assume Scotland's devolved functions including police, health, courts and education would take up a second third of public sector spending. Leaving one third which would include the remaining institutions Scotland would need to replicate from Whitehall.

Therefore the bill an independent Scotland would face for replicating the two thirds of Whitehall IT systems would come to £1.1bn.

A chance to build something better?

Some estimates over costs by various bodies have been worked out using the number of citizens - the UK has 60 million people, while Scotland has 5.3 million people. But if you are setting up a system from scratch the number of people doesn't matter. But the difference comes when scaling up the size of the system. I'd hope, if Scotland was to gain independence, they would take advantage of cloud software which is much better designed to scale in a cost efficient manner, over the mainframe systems DWP and HMRC are still running on today.

Take a look at Computer Weekly's analysis on the costs and challenges of setting up IT for an independent Scotland.

The challenges around PSN are still apparent as director leaves

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The challenges around the public services network (PSN) still remain two months after the project has moved into the hands of the Government Digital Service (GDS), as sources tell me senior people are unhappy with the project and are calling for change.

And now it has been revealed that director of the project Mark Pope left the project last week - and sources suggest this was because of "strategic differences".

Pope was due to speak at a PSN Summit event in London next week, and has now been replaced by Andy Beale director of common technology services at GDS, and there have been some whispers that he could also be Pope's replacement as PSN director.

Computer Weekly spoke to Beale this morning ahead of the event, and he said there would be an announcement shortly about who would takeover.

Beale said: "The initial intention was that Mark and I were going to do that [take charge] together, as PSN transitioned into GDS Mark decided he wanted to go and do something else so I have said I will carry on doing it on my own."

But there are still a number of issues around security and encryption. Sources say the encryption guidelines are not clear over which services need to be encrypted and which don't, not to forget regarding the encryption gateways between the PSN suppliers, some of which are not in place yet.

After reading the PSN Programme Directors Update from February 2013, the document stated that the Inter-Provider Encryption Domain (IPED) technical standards had been published and approved, which enables public sector staff to share information at the then higher IL3 security level over the PSN.

The document stated that IL3 service providers were moving towards IPED implementation, which would need to be "materially complete by summer 2013 to match Public Sector plans."     

It wasn't until a year later, that the Government announced that PSN was encrypted for higher security levels, explaining that IPED would comprise of services from at least six PSN-compliant service providers, the first of which include BT and Vodafone.

Yet, in the next annual PSN Programme Directors Update from the same month (Feb 2014), it stated that IPED operational readiness testing had only been completed between BT and Vodafone, with the two suppliers having returned signed IPED agreements. And no word from the other suppliers.

In response to encryption problems Beale said that PSN was "ambitious."

"If you look at this in terms of what it has achieved over five years, a very successful technical programme, but it is very ambitious and has a lot of different facets. One of the things that we want to do is, as I said, help articulate what it is trying to do and how it is trying to do it, and meet the needs of the user community better than it has before. So where there are questions coming such as that we want to be quickly in a position where we have a better product sell in terms of people understanding - so as a general point we'll try to make sure people understand what PSN is and how it works."

We asked the Cabinet Office for details of Pope's departure and this is what they said:

"Cabinet Office spokesperson said: "The PSN team moved to GDS from 6 April 2014, becoming part of Common Technology Services within the Office of the Chief Technology Officer (OCTO). Mark Pope joined the PSN programme in December 2013 to support its transition into GDS. With this phase now complete he is leaving GDS to pursue other challenges. Mark has helped build a strong foundation for the rest of the business to build on."

"We will be announcing the new organisational arrangements shortly."

A private GDS for local government?

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Could local government be revolutionised by a private Government Digital Service (GDS) - type organisation who could swoop in (at a cost) and make local government more digital savvy?

That's what Dominic Campbell, founder of FutureGov believes, he wants local government to become more digital. And so he should because that is the model of his business.

Campbell, who was one of Computer Weekly's top Rising Stars of 2013, said one of the big issues preventing local government from becoming more innovative with IT is the lack of people in senior positions who are tech-savvy.

"We find the problem is there isn't a senior person who understands technology, let alone digital in councils," Campbell told me over a coffee this week.

He said that he often sees the head of IT reporting to the director of resources, who then reports to the chief executive.

"These are the people who look after the servers - they're often not part of the organisational vision."

Campbell believes that technology and digital is still an afterthought among local government, compared to central government who with the backing of Minister for the Cabinet Office Francis Maude is now half way through its 'digital by default' transformation programme. The programme has seen GDS help central government to digitise 25 of its most used public services, with registering to vote becoming the latest transaction to go live.

"But only a third of council websites are mobile ready," Campbell said. "That's how councils view digital, is through their website, and they're not even doing that properly."

He also said that while his opinion of local government using G-Cloud is improving, the majority don't understand how to use it and won't use it.

"It's moving in the right direction, but it's a huge frustration."

Additionally, as a supplier on the framework, FutureGov has challenges with G-Cloud over its lack of flexibility and no easy control over cataloguing. "But generally it's great the way it's moving because people are starting to use it."

But some councils across the UK are innovating at a high pace, Surrey in particular has its own innovation space called Shift Surrey which has been running for 18 months. Surrey have also invested in FutureGov along with Nesta in January, and the Surrey director now sits on the FutureGov board.

Surrey is now able to use its Shift Surrey centre as a testbed for new technologies which could benefit the council. "They wanted Surrey to be the home of innovation for local government," explained Campbell.

FutureGov has created a health and social care solution called Patchwork, which Surrey, along with Staffordshire, Brighton, Wigan and even half of Victoria in Australia are rolling out.

Campbell said the idea for Patchwork came four years ago after the Baby P tragedy. He understood the challenges health and social care had for joining up information and wanted to solve it.

"I knew more about what my mate in Australia had for dinner via Facebook than a policeman knew about the life of a child they were working with. How do you join up the services and overcome the classic information sharing problem?"

"Practioners on the front line only wanted to know who else was involved and their contact details, so they could get in touch with the people working with the child," he added.

Instead of a multi-million pound NHS project, Campbell and his team created a way to share the simplest forms of data that the health workers needed. 

The consumerisation of IT could empower and divide citizens over healthcare

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Over the last couple of years a tidal wave of wearable technologies has entered the marketplace, which has changed the perception of fitness. Now at lunchtime, rather than going for the obligatory pint at the pub on a Friday, people are checking their fitness apps and Nike Fuel Band to see if they've done enough exercise in the day to deserve it. If anything, these devices encourage people to be more aware of their food intake, exercise and overall health and wellbeing.

This morning I woke up to the news that a US electronic medical record company has created the first ""wearable health record" app for Google Glass. With patients' permission doctors can record consultations using the device.

And last week Apple revealed its new app for tracking fitness and wellbeing. Healthkit will aggregate information from various other health apps including Nike Fuelband

But can this technology improve our medical care and even the NHS? Can the health industry take on some of these technologies to improve the lives of citizens?

These ideas were addressed at a discussion on the role of technology in public health at a TechUK event in London this week.

The discussion was held under Chatham House Rules which means I can't reveal who said what, but the overall consensus was that while technology could potentially revolutionise the health industry, we need to be ever-so-careful not to let that technology build up a wall between the digital savvy and the 11 million people in the UK who struggle to connect to internet.

One attendee told the story about a 90-year old woman who had caught the Apple-bug and used her iPad for everything. But she was becoming really frustrated that she couldn't email her doctor her observations on a weekly basis rather than trekking down to the surgery.

But another attendee said that while a heart rate or blood pressure internet-abled device could save an elderly person the weekly journey, they argued that person may also like the excuse to go down to the doctors or Post Office in order to get out of the house to combat loneliness.

The panel agreed that we can't assume on behalf of those suffering from the digital divide what might be best for them.

Speaking to Computer Weekly after the event, Luciana Berger, MP, shadow public health minister of the Labour Party said: "We need to focus on making sure we're not in any way widening health inequalities by putting forward technology solutions."

"We need to empower people and give them the choices to do what they want to do," she said. "But how can we make sure everyone has access to that information?"

While she is concerned about the digital divide, she is excited by solutions such as Apple's recent Healthkit. "How many million users have an iPhone in the UK?" she said.

She also said that the NHS is one of the top three priorities to UK voters, and Labour is well aware of how important it is. In that case perhaps we will see some technology-related health issues raised in their election campaign over the next year? 

Is the connected fitting room the future of retail?

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While eCommerce is increasing year on year, footfall into brick and mortar shops is falling, as customers are seeing online as an easier and cheaper challenge to buy their goods.

So what is the future of the high street? More closing down sales and boarded up shops as retailers fail to keep up with online competition?

I'm not so sure; I think there will always be some kind of demand for some physical retail stores, especially in the fashion industry. For instance, this weekend was a particularly sunny weekend for us Londoners, and after a leisurely brunch, my friend and I decided to head to the park. But she had made the big mistake of wearing jeans, and with temperatures peaking at 24 degrees, she popped into a shop to buy a skirt on the way to the park.

So whether you're picking up an impulse buy £7 skirt in H&M or your spending thousands on an Oscar de la Renta ball gown, there are some occasions when visiting a shop is necessary and even pleasurable.

And some retailers are lucky enough to have a steady flow of customers strolling through their doors to feel the fabric of a dress and brave the ill-lit changing rooms. But shops such as John Lewis and M&S aren't sitting back and hoping this will continue, they're actively looking at ways to make the in-store shopping experience better using technology.

From kiosks, iBeacons, internet of things (IoT) and augmented reality (AR) mirrors, the retailers have been at the forefront of in-store technology innovation. But it's not always paid off - John Lewis experimented with AR mirrors, and quickly dropped the project as part of its 'fail fast at innovation' strategy.

But now another technology offering for the fashion industry is on the horizon - a connected fitting room.

Avanade and Accenture's Connected Fitting Room is less gimmicky than an AR mirror and may stand a chance to make it into some of the UK's changing rooms.


Already being piloted by Kohl's in the US, this 'intelligent system' uses a combination of digital, mobile, cloud and analytics to enhance the customer's in-store experience.

RFID tags allow the fitting room to identify clothes when a shopper hangs them up as they enter the fitting room. Their items then pop up on a touchscreen in the cubicle and offer a number of services.

The shopper can see different sizes, styles and colours available in-store which can be requested from the touchscreen and an assistant on the shop floor will receive an alert to their smartphone.

The Windows technology - which is the same tech which runs ATMs and kiosks - could also offer special offers and promotions or allow the shopper to login to their online profile and purchase the item online if it isn't in stock.

Danielle Lara, retail lead of business development at Avanade puts in plainly: "Retailers have been investing heavily both in the front of store and online, but changing rooms remain largely the same as they were five or ten years ago. Digital technology today, offers retailers a huge opportunity to innovate in the changing room and further improve the customer experience."

And the retailer also gains insight from this area of the customer journey. Real time metrics show retailers which items of clothing have been tried on, and perhaps send an alert if customers are tending to request an item in a larger size which could determine a bad fit.

And Kohl's seem to like it. It's been live in a small number of US stores since January, but the retailer has just agreed to expand the pilot to other stores to understand potential ROI before committing to the technology.

Now the tech just needs a retailer like John Lewis or M&S to trial it in the UK so it gets in-front of a significant amount of consumers. Will it be a 'fast fail' or an innovative success?

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