3. 3
How we work
Helping the Telegraph grow
their Travel business.
Delivering the best mobile
sports book.
Helping change from a primarily
B2B pension provider to a B2C
company as regulations change
Innovation Lab
• Create great product and
service ideas from data &
insight
• Experimentation and
validation of ideas
• Joint / co-located teams
• Objective information to
support business cases
and product decisions
Proving Ground
• Test whether product and
service ideas work in
practice
• Experiments and validation
using end-to-end Proofs of
Concept
Mobilising Business
• Identify, prioritise, analyse, &
create an ongoing roadmap of
solutions which address business
goals
• Deliver a series of production-
ready products and services
• Continuous improvement
• Using licenced CAF apps and
accelerators as appropriate
Helping KPMG create and prove a
range of new offerings for SMEs
Improving the lead to cash process
within KPMG, e.g. improving
profitability of core business units
such as Audit
Delivering a series of apps to Waitrose
store managers and staff to improve
their productivity and customer
satisfaction
Helping the Met tech innovation
division prove how mobile can
solve key operational issues
Approximately 35% of CAF activity Approximately 65% of CAF activity
3
4. 4
• Year to date we’ve taken £581,002,460 in
total stakes placed, up from £280,351,897
last year.
• Previously Ladbrokes were considered
almost bottom of the premiership in terms
of digital sports betting.
• YoY Mobile Sportsbook growth was
improved from 24% to 112% excluding a
stellar performance during the World Cup.
• Our lab has acted as a catalyst for
change across the rest of the business to
think more scientifically and as such
we’re now going into the retail landscape
and applying our process and learnings.
We’ve achieved a four figure % ROI on
investment on CAFs services.
• Bringing retail into the mobile age
• Enabling staff to: Check stock levels,
product information, do timesheets,
check sales information
• Demonstrating clear ROI in
operational savings
• Building a more efficient retail
workspace
• Demonstrating to the industry and
staff a capability to leverage new
technology in an age old business.
• Objective: Transforming the
Telegraph culture to be faster
pace, more competitive, less
instinctive and more scientific
on its assessment of value on
activities undertaken by staff.
• We are currently focussing in
on the Travel business. Taking
a £20m revenue to a £40m in
just two years.
Innovation Lab Enterprise Mobilisation
The Results
6. 6
• The scenario: Waitrose, have deployed 5,000 iPads into their
branches to increase staff productivity and enable them to
have more time on the shop floor with customers.
• Waitrose and CAF identified over 100 candidate applications
The solution – a Continuous Development Cell, giving Waitrose:
• A prioritised roadmap of achievable mobile solutions
• An Agile delivery team making integrated, secure enterprise
applications, at pace, that connect to a complex back-end
• The management of numerous versions of applications, their
updates, changes and the support of them.
Highlights and successes (so far…)
• 1 year into a 2 year roadmap of mobile applications
• Multiple mobile applications delivered into stores
• Increased visibility for branch managers on store performance
• Staff efficiency increased, more time with customers on the
shop floor
• Staff better informed about products, stock and demand
• Innovation brought into the heart of each Waitrose branch’s
customer service activities
Client example
and case study
7. 7
• The scenario-KPMG, with CAF, identified the opportunity to
significantly increase productivity through mobile.
• Requirements needed to be gathered from a disparate business
and analysed before delivering value.
Thesolution–Adiscoveryanddeliveryphasetoidentify,prioritise,analyseand
selecttherightapplicationsfordevelopment.
• Gatheredexisting appideasfromacrossKPMGandidentifiednewones.
• AnAgiledeliveryteam makingintegrated,secureenterpriseapplications,at
pace.
• Aroadmapofapps,clusteredarounddeliveringvalueintoKPMG
Highlightsandsuccesses(sofar…)
• Increasingproductivityby1-2%
• Deliveringacost/benefitratioof10:1
• Increasingspeed, accuracy,accessibilityofinformation
• Increasingproductivity,wheretodaythereisalabourintensivecoststructure
• AtimesheetprogrammedeliveringanRoI within5weeks
• DeliveryofJobManagementprogramme,savingpotential£25mperanum
8. 8
CLIENT: KPMG
The Discovery Phase
Gathered existing app ideas from across KPMG, and identified new app ideas
• The challenge was to work with a diverse group of partners and pull out the best ideas
while keeping their engagement
Analysis – the Discovery Phase
• An analysis using CAF’s experience of mobilising business – to draw out the most
valuable apps, and set out a roadmap of how to gain the most benefits.
• The challenge - apps usually have to connect effectively with existing IT systems; a big
part of the discovery phase is identifying which app ideas are achievable and finding the
most effective solution for delivery.
Results
• A roadmap of to-be apps clustered around a key process to drive the most benefit.
• … this moved into Development in Spring 2014, and the first apps have been delivered
9. 9
MOBILISING KPMG WILL BRING AN ANNUAL BENEFIT OF BETWEEN £10 AND £20M
The business benefit of mobilisation
Mobilisation will have a significant impact on KPMG and its industry:
• Increasing productivity where today there is a
- labour-intensive cost structure
- high proportion of mobile / client-based staff
• Increasing speed, accuracy, accessibility of information products and processes
• Temporary advantage to leaders will translate into increased share of market
and enduring value
We think
• Mobilisation will increase productivity by (conservatively) 1-2%
• This is a cost/benefit ratio of 1:10
10. 10
THE BUSINESS BENEFITS FROM TIME SAVING
The value of a timesheet programme
Quick and easy way to enter and update timesheet info; ballpark cost to implement £270k
Scope of KPMG business impacted:
– £1.8bn UK revenues, excl cost of process, or impact of process errors or delays
Potential savings of an iOS-only* version estimated at approximately £50k/week
– 42% of staff x 7.5 mins/40-hour week = 42% x 0.33% x £1.8bn = £2.5m billable time
annually
– Reduced chasing, errors, underbilling and rework
– Opportunity for earlier billing = 0.27% of annual revenue per day brought forward
Value is 10 x cost
– Payback in 5-6 weeks on rough estimate of billable time only
– There is also the staff satisfaction of improving the unpleasant task of doing timesheets
* 42% of staff have an iPhone, the rest have mainly Android or Blackberry
11. 11
THE BUSINESS BENEFITS FROM PROCESS IMPROVEMENT
The value of a job management programme
Quick and easy means of managing job budgets, approval workflows and forecast information, and
seeing how actuals are coming in against forecast: ballpark cost to implement: £200k
Scope of KPMG business impacted:
– Audit business, extendable to other areas of KPMG
– Cost of running current process estimated > £2.5m annually
– Impact of process issues – principally budget overruns - estimated up to £25m annually
Expected impact:
– More effective engagement resourcing and cost / profit control
– Reduction in process admin cost and the wait for data
– Faster budget/forecast discrepancy identification and remediation
Value is 12.5 x cost
– Payback in less than 5 weeks
– User-centric process and design means the task is easier and better adoption is expected
12. 12
ITERATIVE DEVELOPMENT HELPS BY REDUCING THE RISKS OF MOVING QUICKLY
But the mobilisation opportunity
is very speed-sensitive
Estimated benefits are typically a high multiple of costs (10-100x)
• A couple of months delay could be more than the entire development cost
Agile development approach reduces implementation risk - but can seem a greater ‘leap
of faith’ at the outset
Competitors are not standing still:
• Leaders will capture sales, increase margins, and improve productivity
• Laggards will see sales and margins fall
• High performing (especially younger) staff are tempted by more innovative tools
13. 13
The brief – to be “the best” mobile sports book in time for the world cup
• “the best” - whatever the customer truly values – and keeps them
happy
Thesolution– tosetupaself-containedbusinessunitprovidingLadbrokeswith:
• Anintegratedcustomerandproductdiscoveryprocess–adataandlean
experimentdrivenapproachtodeterminefeaturesandservicesour
customerstrulyvalue
• Anagileproductdevelopmentfunctionreleasingnewfeaturesovertwoweek
sprints
Highlightsandsuccesses(sofar…)
• Generationofover200productandfeatureideascategorisedandprioritised
• Aportfolioapproachtothedeliveryroadmapallowingustoprioritiseoureffortto
deliverfeaturesclassedas“brilliantbasics”,“progressive”and“breakthrough”
• Failfastmentalityallowingustorun15+experimentsandrule20+ideasinandout
• Over30newproductfeaturesliveover8releases… (sofar)
• Turnovertargetsexceededby35%andactivecustomertargetsexceededby68%
• Customerretentionrateincreasedby50%andnewcustomerretentionupby80%
Client example
and case study
14. 14
3 Overview of CAF process
IDENTIFY, PRIORITISE, ANALYSE & PREPARE, DELIVER, ITERATE
15. 15
Overview – taking a range of candidate ideas through iterative development
Live AppsDevelopmentBuffer
Funnel
Buffer of apps where
Product Backlogs are
produced
Iterations for
existing apps
Received
App ideas
Prioritised app
ideas
Scheduled
app ideas
Delivery cells (one or more in parallel) – take
product backlogs and use to develop / test the app
Feedback,
analytics, user
requests and
iterative
improvements
New IdeasDriving new
business ideas
16. 16
At CAF we run our project using a SCRUM methodology; utilising a standard two week sprint cycle. Britvic and CAF meetings are the Product Backlog Grooming
and Sprint Review sessions. Open and responsive communication channels are required to deliver the most value possible from the end products.
Methodology
