Digital Transformation Scotland 2017

Theo Priestley
Conference Chair
@tprstly
#digiscot

Ray Bugg
DIGIT
@digitfyi
#digiscot

www.digit.fyi
News
Views
Opinion
Insight

Get Involved
pete@scot-tech.com

Ann Longley
Disasters Emergency Committee
@AnnMargaret
#digiscot

Secrets to successful organisational
change:
confessions of a change agent
Ann Longley, 23 February 2017

Topics for today
Why we need to
change
Change gone
wrong
Smart change

Technological change is inevitable and unstoppable

Disintermediation
is wide spread

Disintermediation
is wide spread
Millennials have
high expectations

Disintermediation
is wide spread
The robots are
coming
Millennials have
high expectations

The pressure is
on to get it right

Topics for today
Why change Wrong change Smart change

Failure is common: the estimated cost of global tech failure is $3T USD
“By 2018, 70 percent of silo’ed digital transformation
initiatives will ultimately fail because of insuﬃcient
collaboration, integration, sourcing,
or project management.”
IDC FutureScape: Worldwide CIO
Agenda 2016 Predictions

The pecking order is changing - ignore digital disruption at your peril!

The number of jobs to be lost to robots by 2021 will be 6%.
We will get it wrong if we ignoreit.

The cost of failure: It’s expensive. It’s embarrassing. It’s careerdestroying.

What kind of change is your organisationpursuing?
Catching up DisruptingKeeping up

How does this change impact onyour people?
New projects
New skills, new
behaviours
New colleagues

How does this change impact onyour people?
New projects
New skills, new
behaviours
New colleagues
Is it going to increase or decreaseworkloads?
Is it going to make people redundant?

All those factors impact
our ability to function

What happens to us when
we are anxious?
✤ we close down
✤ run away
✤ resist

We need to create the right
conditions for change

1. Your change programme needs a strong story

2. Engage your people - do it with them not for them

To get the outcomes
you want,
put smart triggers in
front of motivated
people

3. Strong leaders are needed to unite everyone
around shared goals and purpose

4. New ways of working help accelerate change
and break down silos

5. Manifest your culture in your working environment

and though your company’s values and behaviours

You will be nimble enough to embrace
new digital opportunities

Your employees will become your ambassadors

and you will be prepared for anything
including the robots!

Stuart McMillan
Schuh
@mcmillanstu
#digiscot

• Introduction
• What we measure
• Metrics that matter
• What should you
do with it?
• Applying Pareto
and Pragmatism
@mcmillanstu #digiscot
Stuart McMillan,
Deputy Head of Ecommerce
Insight & Action

Introduction
• Established in 1981
• 128 Stores in 3 countries
• High quality of execution
• Multichannel
• Website launched 1998
• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism

What we measure
• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism

What we measure
• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
YOY % DIFF
Clicks Spend Orders Revenue Conversion Rate
PPC 22.30% 0.91% -4.51% 2.31% -21.9%
Email 6.16% 35.65% -25.34% -15.89% -29.67%
Affiliates 3.60% 72.89% 4.18% 13.49% 0.6%
Struq 238.55% 162.70% 232.61% 280.68% -1.76%
Paid 25.47% 2.32% 0.16% 8.30% -20.18%
SEO 9.95% 0.96% 6.89% -8.18%
Schuh
Cycle -7.74% -26.02% -19.93% -19.81%
Direct 7.08% 40.64% 60.06% 31.34%
"Free" 8.86% 10.84% 20.99% 1.82%
Totals 16.63% 4.95% 14.06% -10.02%

What we measure
• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
• Sale vs. full price
• Sell-through
• Checkout abandonment %
• % of customers entering checkout
• Site speed
• Errors
• Session duration
• NPS
• NES
• User Generated Content
• Competitor activity (inc. traffic)
• Blog views
• Social Media interaction

• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism

Revenue
Traffic
Revenue
Per Visit
Conversion
Rate
Average
order
value
Average
Selling
Price
Items
per
Basket
• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
Cost of
Sale
Time on
site?
Interactions?Pages
viewed?
Useful?
Interesting?

• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
Drowning in a sea
of information

• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
Case study 1

• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
Case study 2

• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
ROI
&
MVI

• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
Knowledge
is nothing without
Understanding

Spend time and money on
people, not tools.• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
https://www.kaushik.net/avinash/the-10-90-rule-for-magnificient-web-analytics-success/

• Introduction
• What we measure
• What should you
do with it?
• Applying Pareto
and Pragmatism
Stuart McMillan,
Deputy Head of Ecommerce
ThankYou

Bill Gemmell
Leidos
@simplifywithus
#digiscot

Harnessing Technological
Opportunity for Real Business
Transformation
Bill Gemmell, Head of Professional Services, PS&E
23/02/2017

• Translating Opportunity into Tangible Value
• Human Focused Change
• Impactful Analysis
• Digital Leadership

58 ©2017 LEIDOS. ALL RIGHTS RESERVED.
Creating Tangible Value

Meet Clive…..
Digital
Transformer

Haven’t checked my messages for at least
two minutes……..

Increased
revenues
Happy
Travellers
On-time
departures

Human Focused Change

Meet Carole…..
Digital
Transformer

Meet Alexa, Harry’s
new Companion

“It has afforded me
something that I have
lost. Memory. I can
ask Alexa anything and
I get the answer
instantly. And I can ask
it what day it is twenty
times a day and I will
still get the same
polite answer.”

Spirits
Raised
Care in the
community
outcomes
Latent
Information

Impactful Analysis

Meet Phil…..
Digital
Transformer

Asset Management
(Tech Forge)
GIS
Management
(Map Info)
Document and Content
Management
(Excel)
Work
Scheduling
(WebAspx)
Case
Management
(Siebel CRM)
Information
Management
(Xpress)
Project and Risk
Management
(Project Vision)
Contact CRM
(Siebel CRM)
Work Order Management
(Civica Flare)
(Siebel CRM)
(Symology)
Specialist
Control Systems
(ASLAN)
Case
Management
(Ocella)
Specialist
Control Systems
(Traffic Lights)
GIS
Management
(Cartology)
Work
Scheduling
(Total Mobile)
Contact CRM
(Tunstall)
Project and Risk
Management
(Verto)
(TechForge)
(Total Mobile)
Project and Risk
Management
(Covalent)
Work
Scheduling
(EGenda)
Work
Scheduling
(Care Manager)
Contact CRM
(FirmStep)
Contact CRM
(Lotus Notes)
Case
Management
(Axia)
Case
Management
(Foster Care)
Case
Management
(ICS)
Case
Management
(Raise)
Case
Management
(Si-Dem)
Asset Management
(Caspar)
Document and
Content
Management
(Goss ICM)
Document and
Content
Management
(Northgate EDMS)
Document and
Content
Management
(File Shares)
Council Property
Community Safety
& Emergencies
Environmental
Protection
Consumer
Affairs
Transport and
Infrastructure
Planning and
Building Control
Information
Technology
Adult Social Care
HR
Management
(Carval)
Information
Management
(Capita One)
Information
Management
(Capita eStart)
Information
Management
(Core IMS)
Information
Management
(CAF - Excel)
Information
Management
(Homelessness d/b)
Information
Management
(Registrar)
Asset Management
(Axiell)
Asset Management
(Symology)
Asset Management
(Civica APP/Flame)
Asset Management
(Siebel CRM)
Asset Management
(Centenial)
Information
Management
(EDMS)
Information
Management
(Land Terrier)
Information
Management
(Gower)
Information
Management
(Erimus)
HR
Pensions
HR
SAP Payroll
Booking and
Ticketing
(TLMS)
Booking and
Ticketing
(Blackbaud)
Finance and
Procurement
(Caspar)
Finance and
Procurement
(Northgate
iWorld)
Finance and
Procurement
(Northgate
eBenefits)
Finance and
Procurement
(Esker
Deliveryware)
Finance and
Procurement
(Intech - Fraud)
Finance and
Procurement
(Credita)
Finance and
Procurement
(Capita Axis)
Finance and
Procurement
(SAP FI)
Case
Management
(IAS)
Child Social Care
Education
Services

Lower Costs
New Tech
and engaged
employees
Connected
services

Digital Leadership

We need Digital Leaders who are:
• Bimodal
• Team Players
• Pioneers
• Humble
• Driven

Forget your job description. Turn everything
you do into a transformation project. A project
with a beginning, middle and end. A
transformation project has an outcome you’re
striving for. A job description has no end in
sight, it’s a never-ending Mobius strip - you
can’t escape its confines.
Digital Leaders understand this. Are you one?
Can we help you be one?

Forget “Digital”, we just need leaders

Questions & Discussion
#digiscot

Refreshments &
Networking
#digiscot

Our Next Event 23rd MAR
www.scot-secure.com

Karl Smith
Paradigm Interactions Inc
@UserExperienceU
#digiscot

Digital Transformation is
About People
by Karl Smith @UserExperienceU
CEO Paradigm Interactions Inc.

Prioritise creating
highly engaging
positive experiences

Focus on
the simplification
of process

Avoid getting trapped
in limiting
technology solutions
“As Technologies come and go,
Customers are eternal”

Ensure
transformation strategy
is evidence-led

Understand the relationship
between
culture
people
& process

How you start will determine how you end
• Understanding the Issue (what is the problem being solved, don’t try and fix symptoms)
• Understanding the Context (how it is used, who uses it, does product or service meet the user requirements)
• Understanding the Market (competitor landscape, market imperatives, business risks and equality rights)
• Defining Knowledge Gap (the gap between what is provable knowledge and what is assumption)
• Define Baseline Metrics (core current metrics of situation)
• Define KPI's (core target metrics of future situation from Baseline Metrics, post deploy)
Only then Define the Methods and Processes

Digital Transformation
is About People
by Karl Smith @UserExperienceU

Nathan Fulwood
CreateFuture
@kidcamel
#digiscot

Nathan Fulwood
Strategy Director & Founder
Strategic Creative Consultancy
The value of brand
Engagement & experience
How to get it right, quicker

Brand is a relationship
WHO YOU ARE WHO THEY ARE
YOUR STORY
D
THEIR STORY
YOUR ARTIFACTS
N
BELIEFS
YOUR INVITATIONS
A
ASPIRATIONS
CULTURE
R
BEHAVIOURS
BELIEFS
B
WANTS & NEEDS
PRODUCTS VALUES
PERSONALITY LOCATION
ORGA NISAT ION AUDIENCE

Percentage of spend on
marketing &
advertising that goes
unnoticed or
unremembered…?

C R E A T E E X P E R I E N C E S

Will this
engage my
audience?
Content, advertising, propositions,
services, products
THE KEY QUESTION

POINTOF
SALE
MARKETING
COMMUNICATION
CUSTOMER
SERVICES
MOBILE
AND
DEVICES
INFORMATION
GATHERING
WEBSITE&
E-COMMERCE
SERVICE
COMMUNICATION
SEARCH
DATA&
INSIGHTS
SOCIAL
MEDIA
FRIENDS&FAMILY
WORDOFMOUTH
AGENCIES&
SUPPLIERS
INTERNAL
STAKEHOLDERS
BRAND

DESIGN S P R I N T S
‘Greatest hits’ - Google Ventures Sprint Process - http://www.gv.com/sprint
You can pack business strategy, innovation,
creativity, behavior science and design thinking into
one week.

DAY ONE DAY T W O D AY T H R E E DAY FOUR DAY FIVE
AGREE O N THE M O S T
IMPOR TANT QUESTION

E X P L O R E
POTENTIAL SOLUTIONS

DEVELOP A
STOR YBOAR D

BUILD A
PR OTOTYPE

T E S T W I T H
FIVE C U S T O M E R S

Can Augmented Reality help
customers understand complex
topics?

Will customers want this new
digital service offering?

What kind of video contentwill
engage book readers?

How can we make companies
aware of a pensions timebomb?

How can we engage hardcore
gamers on social media?

T H E C O S T OF D E L A Y
Prioritise the most important project questions
and gain immediate feedback.
Value stream map - http://blackswanfarming.com/cost-of-delay/
£150,000 per week lost in delay.

R E L A T I O N S H I P S N E E D W O R K

A S T R O N G BRAND:
Aligns your organisation with the needs of your
customer and gives focus and consistency
Gives you plenty of hypotheses to test and learn from
Translates your business purpose into something your
audience can engagewith

Input
Internal leadership, management and employee insight
External client and stakeholder insight
Communications ecosystem audit
Competitive/comparative set analysis
Purpose
Why you do what you do
Ambition
What you aim to achieve
Proposition, brand story & themes
What you will be known for (clients, stakeholders and talent)
Output
Creative platform/brief
Engagement principles and tactics
Identity and design framework, education and guidance
Content, storytelling andmessaging
Values
What you believe in
Brand character (visual & verbal)
How you express yourself. What if feels like to work with you.
Personal insights provide the substance,
authenticity and inspiration for a compelling and
sustainablebrand.
Informs decision-making throughout process.
Early engagement/consultation helps create
ambassadors for process and outcomes.
Gives your brand energy and drive that all
stakeholders can connect with.
Ensures communications aredriven by
audience benefit.
Structures content generation,storytelling
and messaging.
Defines the human side of your business.
Who you are and what’s important to you.
Differentiates you and helps all audiences
connect rationally and emotionally with
the experience and service you offer. The
brief to influence and inspire all creative
and communicationdecisions.
Motivates employees, builds personal
connection with clients and creates a
platform for profile inyour
marketplace.

Esther Stringer
Border Crossing Media
@estherbcm
#digiscot

@EstherBCM
Transform your thinking

+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978
I My Job!

Imagine a better world and create it.

+44 (0) 131 561 7300 | www.bordercrossingmedia.com | Company No: SC 308 978 1

?
1. Think about problems not solutions

Ask real people about their problems

What?
How?
Why?
When?
?
?
?
?
???? ??????
?
?
?
?

Generative Product Research Generative Market Research
Questions
 How can we solve the problem?
 What form should this take?
 How important is the design?
 What’s the quickest solution?
 What is the minimum feature set?
 How should we prioritise?
Methods
 Solution interview
 Contextual inquiry/ethnography
 Demo pitch
 Consulting
 Competitor analysis and usability
testing
Questions
 Who is our customer?
 What are their pains?
 What job needs to be done?
 Is our customer segment too broad?
 How do we find them?
Methods
 Customer discovery interviews
 Contextual inquiry/ethnography
 Data mining
 Focus groups*
 Surveys* (open ended)
* Not recommended

2. Phrase your customer problems in their
words

I need new
functionality

I worry about
my daughter at
night

Problems
?
?
?
?
???? ??????
?
?
?
?
Needs

> 95 % of companies Marketing
and Development managers don’t
agree on what a Customer need is
Source: Stratgyn.com

3. Define your customer needs

Customer need:
Bill needs to
have peace of
mind that his
daughter is safe
when she
travels alone at
night.

Problems
?
?
?
?
???? ??????
?
?
?
?
Needs
Prototypes

How might we?
Sharing travel info
from app
GPS tracker in neck
Auto text message
every five minutes
Push notifications
Don’t let girls out after
dark
Long piece of
thread
Follow her
Breadcrumbs
Learn how to relax
and ignore it
Monitor her vital signs
Panic button

Evaluative Product/Market Research
Evaluative Product Research Evaluative Market Research
Questions
 Is this solution working?
 Are people using it?
 Which solution is better?
 How should we optimise this?
 What do people like / dislike?
 Why do they do that?
Methods
 Paper/Clickable prototypes
 Usability
 Hallway
 Live
 Remote
 Functioning products
 Analytics
Questions
 Are they really willing to pay?
 How much will they pay?
 How do we convince them to buy?
 How much will it cost to sell?
 Can we scale marketing?
Methods
 5 second tests
 Comprehension
 Conjoint Analysis
 Data mining/market research
 Surveys* (closed)
* Not recommended

Problems
1
?
?
?
?
???? ?
?
?????
?
?
?
?
Needs
Prototypes
Build

?1. Think about problems
not solutions
2. Phrase your customer
problems in their words
3. Define your customer
needs

0131 561 7300
hello@bordercrossingmedia.com

Michael Murphy
Ryanair
@Ryanair
#digiscot

© Ryanair 2014
171
Always Getting Better: the engine of change in Ryanair
– Where we came from
– Why we changed
– How we are getting there
– What we have achieved
– What still puzzles us
Transformation in flight

© Ryanair 2014
Europe’s No 1 Coverage
172
 Europe’s Lowest Fare
 No. 1,Traffic – 119m p.a (+12%)
– grow to 200M by 2024
 No. 1, Cover – 200 airports
 No. 1 on service – on time/low cancellations
 33 countries
 1,800+ routes
 340 x B737-800’s
 330 x B737s on order

© Ryanair 2014
The Good Guys Of Europe a n Air Travel
The Good Guys Of European Air Travel

© Ryanair 2014
Useful
Future
Today
Likeable
Become As Liked As We Are Useful
Become as Liked as we are Useful

© Ryanair 2014
Ryanair in Transition – From this...

© Ryanair 2014
Ryanair in Transition – To this…
Ryanair in Transition – To this...

© Ryanair 2014
177
2000 – Launched its first website.
– Built by two 17 year old school students
Ryanair IT – Where we came from

© Ryanair 2014
Eu ro p e ’ s F a vo u rite A irlin e
178
– Within 3 months it was taking 50,000 bookings a week.

© Ryanair 2014
Ryanair IT – 2000-2014

© Ryanair 2014
The Problems We Faced

© Ryanair 2014
Negative Feedback Faced

© Ryanair 2014
182
 2014 - Change in Ryanair – Always getting better.
– Improve the flying experience.
– Broaden the appeal.
– Improve our product.
– Keep the focus.
– Embrace Digital.
Vision

© Ryanair 2014
Ryanair Labs – Head Office

© Ryanair 2014
184
 Ryanair Labs – AGB program powered by IT.
 Open Nov 2014
 State of-the-art digital & IT innovation hub
 New focus on customer first
 What we do?
– External customer facing channels – website, booking engine, mobile apps.
– Internal systems.
– Bring innovation and technology to the travel industry.
– Leveraging machine learning & Big Data
 Currently > 200+ staff
Ryanair Labs – core strategy

© Ryanair 2014
Europe’s Leading Travel Experience for customers
Improving the customer experience

© Ryanair 2014
186
 New mobile app
New website
Personalisation
Increase ancillary sales
Create new products
Become the Amazon ofTravel
The challenge

© Ryanair 2014
• New Website & App
• Reduced Fees
• GDS & Corporates
• Business Plus
• Family Extra
• Free 2nd Bag
• Allocated Seating
• Car Hire
• Native App
• Social & Blog
• Reduced Sports Fees
• Customer Charter
• 3rd GDS Partner
• US Website
• New interiors - Dec
• New Uniforms - Dec
• Defibrillators - Nov
• Hold A fare - Oct
• New Web & App - Oct
• More Primary Apts
• Insurance - Oct
Year 1 Year 2 Year 3
• Rate my Flight
• Auto Check in
• My Ryanair Club
• One Flick Purchase
• Bag fees
• Event discounts
• New - Leisure Plus
• Improved – Bus. Plus
• Digital Vouchers
A l w a y s G e t t i n g B e t t e r T r a n s f o r m s R y a n a i r

© Ryanair 2014
The Solution
• Customer First
• Cross-functional teams
• Bias towards actions
• Don’t hate - iterate

© Ryanair 2014
189
 Ability to react rapidly
 Early delivery of features
Frequent delivery of features
Faster feedback on products
Faster feedback on processes
Why Agile

© Ryanair 2014
190
Agile in Ryanair: Single product owner

© Ryanair 2014
Embrace new technologies

© Ryanair 2014
192
Agile in Ryanair: Communication

© Ryanair 2014
DevOps & the 4th Industrial Revolution:
• Speed of delivery to production has evolved from a single delivery/week
to multiples in a day.
• Information radiators, build screens & dashboards now in prominent
areas of development floor, moved from infrastructure to web
monitoring.
• Traditional Infrastructure engineers are being reborn as Operations
engineers – higher up in the Systems stack.
• We are now comfortable with trending towards a cloud-first strategy for
any new app deployments.
Agile in Ryanair: Frequent releases

© Ryanair 2014
MOBILITY SECURITY BIG DATA
CREATIVE
LABS
DATA
VISUALIZATION
Personalization
Airline
Technology
RESEARCH & DEVELOPMENT
Agile in Ryanair: Embrace new ideas

© Ryanair 2014
 Responsive Website:
– 10M visits on Smartphone
– 6M visits on Tablet
– 1.5M visitors daily
 Native App launched in March 15
– 18.5M downloads on iOS and Android
– 4.8M active users monthly
– The number of bookings per day on the app has increased 700%
• Now responsible for 15% of overall bookings
8
Has it worked? – The Data

© Ryanair 2014
Continuous Struggle
Rapid Delivery v UX/UI
Reaching for the perfect product
Long term viewDaily releases
MVP
Simple Designs

© Ryanair 2014
205
 Home to hotel bedroom and how we can make it better
 Location aware communications
 Better digital integration with airports
 Inflight entertainment &Wi-Fi onboard
 Support for wearables
 DigitalWallets
 Amazon ofTravel
Where next

© Ryanair 2014
Leave you with 3 simple messages :
Personalization is the force behind the
change in Ryanair
Open platforms power innovation and
facilitate customer satisfaction
Get it going, lots of frequent change
required - do not be afraid
If you remember 3 things

Martyn Wallace
Scottish Local Authorities
Digital Office
@Digital_MW
#digiscot

Business Creation/
Expansion/
Employment
Big Data
and
KPIs
Council Facility
Usage
Transport
Care of People
Community Safety
Building Stock
Tourism
Energy
Consumption
Education

Improve workforce
effectiveness, with
secure digital networks,
devices and tools that
transform ways of
working
Get closer to
customers and
communities through
innovative use of digital
technology
Cut out wasteful
processes, with
technology like
Internet Of Things or
Big Data & Artificial
Intelligence
It's not just about online transactions , we need to look at the steps of every frontline
process and search for unlockable data to drive efficiencies and change

212
The Digital Layer Cake
Transform
DIGITAL
LEADERSHIP
Deliver – DIGITAL
SERVICES
Disrupt – Culture, Business Rules,
Customer Interactions, Data,
Discover – FOUNDATIONS :TheTechnical
Platform
DigitalCouncil Digital Places

Dr Jim Hamil
Strathclyde University

CONFIDENCE
I understand my
business needs
•Cost Reduction
•Improve service
•Streamline process
I understand Digital
•The terms
•Methods
•The technology
•The impact
•Innovation
I have the necessary
skills
•In house
•Personally
•I can and have authority to
innovate
Technology is easy
to use
•For Citizen
•For staff
•For me
Its Secure
•But not business prohibitive
Digital will Support
& deliver
•Outcomes
•citizen
•staff
•council

Ambition
How else can I used
Digital to ..
•Reduce Cost
•Improve service
•Streamline process
Digital underpins
•Redesigning process
•Break Tradition
•Creating new opportunities
•New business models
•New Revenues
How can I hone skills
to create
•New Careers
•New culture
•Authority and environment
to innovate
Technology adapts
& evolves to support
•Citizen
•Staff
•Council Services
•me
Security at the heart
•Understanding
•Mitigated steps to protect
assets
Digital Evolution
Support & deliver
•Outcomes
•citizen
•staff
•council

delivering better outcomes
Digital can deliver savings at the same time as improving quality of life
Quality
Of
Life
Public Services Economy
Increased
Economic
Activity
• Increased
Participation
• Community
Empowerment
Inward
Investment
• Reduced Failure Demand
• Proactive rather than
Reactive Services
• Better Partnerships
• Improved Efficiency and
Cost Savings
• Improved Decision-Making
• Improved Market
Insight
• New Markets
• Innovation
Opportunities
• Business Growth
• Improved Achievement and
Lifelong Learning
• Better Health and
Independence
• Reduced risk of crisis
• Reduced inequality
Improved
Resiliency
and
Sustainability
Digital Place

Sara Green Broderson
Deemly
@SaraBroderson
#digiscot

Andrew Dobbie
MadeBrave
@dobbieandrew
#digiscot

ANDREW DOBBIE
FOUNDER
/DOBBIEANDREW
BENEFITS OF
BEING BRAVE
/MADEBRAVE
@DOBBIEANDREW @MADEBRAVE

TwoWeek
oldbaby
Crappy office
£1kpersonal cash
EST
2012
in a recession

BRAND-LED DIGITAL CREATIVEAGENCY
DESIGN |BRANDING |DIGITAL|SOCIAL

ANDREW DOBBIE
FOUNDER/CD/MD
JILL MOFFAT
HEAD OF DIGITALPROJECTS
EMMA STRAIN
ACCOUNT DIRECTOR
JADE MACFARLANE
SENIOR DESIGNER
PETER PELOSI
SENIOR DESIGNER
EMMA FAULKNER
GRAPHIC DESIGNER
ASA RODGER
GRAPHIC DESIGNER
DAN SIMMON
GRAPHIC DESIGNER
JOHN HYLAND
ARTWORKER
HANNAH DAVIDSON
PA / OFFICE MANAGER
STEPHEN WEIR
OPERATIONS DIRECTOR
LORNA BROWN RAYMOND MCSTAY
CREATIVE SERVICES DIRECTOR COMMERCIAL DIRECTOR
STEVEN HADDEN
DESIGN DIRECTOR
STEPHANIE AITKEN
ACCOUNT MANAGER
DEXTER DOG
BARKETING MANAGER
MIKE BROOKE
HEAD OFSTRATEGY
EUAN BROWN
ACCOUNT MANAGER
HIBA OMAR
ACCOUNT MANAGER
JUDE KERRIGAN
ACCOUNT DIRECTOR
MEET THE
MADEBRAVE®
TEAM
NIALL MACFARLANE
DIGITAL DESIGNER
DAISY SWAIN
DIGITAL DESIGNER
FRASER HARKNESS
WEB DEVELOPER
LEWIS DORIGO
WEB DEVELOPER
KEENAN ERWIN
SOCIAL MEDIAMANAGER
STEPHANIE BOYLE
CONTENT STRATEGIST

SHORTLISTED
for Scottish SME of the year
SHORTLISTED
Consumer Engagement Award
(SpringbankWhisky)
WINNER
Outstanding Contribution
bya Young Business Leader
The Scottish
Business
Awards
2016
Herald
Digital
Awards
2016
Inspiring
City Awards
2014
WINNER
Entrepreneur of theYear
SHORTLISTED
forEntrepreneur
of TheYear
WeDo
Scotland
2015
Entrepreneurial
Spark’s
Entrepreneuring
Awards
2015
SHORTLISTED
Glasgow’s Favourite
Business
Evening
Times
Awards
2015
WINNER
Corporate /Promotional
Literature (50Years ofVango)
SHORTLISTED
forEntrepreneur
of TheYear
The Scottish
Creative
Awards
2015
The Scottish
Business
Awards
2015
WINNER
Best Use ofTech
for Tech’sSake
SHORTLISTED
Tech Business ofthe Year
The Chip
Shop
Awards
2016
The Scottish
Business
Awards
2015
WINNER
Best PerformingBusiness
1–10Employees
Glasgow
Business
Awards
2013
SHORTLISTED
for Excellencein
Communications
Glasgow
Business
Awards
2014
SHORTLISTED
for Best NewBusiness
of theyear
The Scottish
Business
Awards
2014
SHORTLISTED
for Young Business Person
of theYear
Glasgow
Business
Awards
2014
SHORTLISTED
for Digital: Website
Scottish CanalsWebsite
The Scottish
Creative
Awards
2016
OUR AWARDS

BE THEUNEXPECTED
SHOP THE MADEBRAVE ORIGINALS COLLECTION
MADEBRAVE-ORIGINALS.COM

Your brand is
simply your reputation
Richard Branson

A brand is simply an
organisation, or a
product, or service
with a personality
Wally Ollins

Your brand is what
other people say
about youwhen you're
not inthe room
Jeff Bezos,Amazon

A brand is not...
or
alogo aproduct
orservice

A brand is the thing
that humanisesyour
business, so that people
can connect with it the
way they would a friend.

Purpose
What is the heart & soul of the brand?
What does it bring to someone’s life?
Why does itexist?
Personality
What characteristics or traits
does the brandhave?
Tone of voice
How does the brand talk
& communicate?
Style
How does the brand look?
And what does this say about them?
Vision
What does it want to become in the
future? Where is it going?
Values
What do they believein?
Name /Logo
What’s the brandcalled?

Peopledon’t
buywhatyoudo,
theybuyWHY
youdoit.
‘‘ ‘‘
SimonSinek
WHY
HOW
WHAT

“We make great computers.They’re
user friendly, beautifully designed,
and easy to use. Want to buyone?”
“With everything we do, we aim to
challenge the status quo. We aim to
think differently. Our products are
user friendly, beautifully designed, and
easy to use. We just happen to make
great computers. Want to buy one?”
WHY
HOW
WHAT

Tomake natural
delicious foodand
drink that helps
people live well
and die old

Toinspire and
develop the builders of
tomorrow

Toinspire creativity
in everyone

WHY
Weexist to inspire creativity
in everyone.
HOW
We refuse to play it safe and
never accept mediocrity.
WHAT
We design, brand, code and share.
And we just happen to have an
awesome time doing it.

Over 217,000 peoplereached
665 likes 91 comments 3325shares

Over 73,650 PeopleReached
252 likes 32 comments 51shares

“Be authentic.Don’timitate.
Youare your ownUSP”
- AndrewDobbie, MadeBrave®
Advice from the heart:

“It’s notfun,
butdon’tignore the
numbers”
Advice from the head:

“Youdon’tknow itall, and younever will
(but hey,that’sok)”
Ifyou remember one thing

AndrewDobbie
@dobbieandrew
/madebrave
@madebrave

George Elliot
Craneware
@craneware
#digiscot

George Elliott – Driving
Collaboration & Seizing
Opportunity
Digital Transformation Conference, Our Dynamic Earth, Edinburgh, 23 February 2017

George Elliott - snapshot
▪ Grant Thornton - 15 years (7 as a partner)
▪ Over 25 years working in the tech sector:
▪ Listed companies - Main Market (3) AIM (6)
▪ 3 IPOs – Wolfson, Craneware, Cupid
▪ Latterly focused on early stage and fast growing companies
▪ Board level/executive responsibility for:
▪ Business development
▪ Sales & marketing
▪ Production
▪ Finance
▪ Since 2007 non-executive chairman/director of 18 companies
Digital Transformation 2017, Our Dynamic Earth, Edinburgh - 23 February 2017 280

George Elliott - currently non-executive
chairman/director of
▪ Craneware plc Software Non-executive chairman
▪ Calnex Solutions Ltd Hardware Non-executive chairman
▪ Cooper Software Ltd ERP consultancy Non-executive chairman
▪ Optoscribe Ltd Component manufacturer Non-executive chairman
▪ Visionware Ltd Software Non-executive chairman
▪ Par Equity Holdings Ltd Venture capital Non-executive director

Presentation is based on
▪ My personal observations and experiences over the last 25 years working with
tech companies that transformed themselves
▪ Why tech is important to Scotland
▪ The culture within Scottish tech companies and why it needs to change
▪ What Scottish tech companies can do to compete and win on the global stage

George Elliott - innovative tech companies that I
have worked with
▪ Services “Claim to fame” Current Status
▪ McQueen First multi-lingual, multi-currency call centre in Europe Acquired by Sykes
▪ Hardware
▪ Calluna Invented the 1.8 inch hard disk drive Dissolved
▪ MicroEmissive Displays Invented the world’s smallest OLED micro display Dissolved
▪ Wolfson Audio chip designed into Apple’s iPod and iPhone Acquired by Cirrus
▪ Calnex First 100G tester for Ethernet synchronisation Private company
▪ Optoscribe Manufacture high performance waveguides Private company
▪ Software
▪ Craneware Software and support services for US hospitals Public company
▪ Two Big Ears 3D audio for VR and AR applications Acquired by Facebook

Why tech is important to Scotland
▪ Scotland has the raw materials:
▪ Deep and long history of innovation and invention
▪ 14 campus based universities - 3 ranked in world top 100
▪ Cost structure and flexible working practices
▪ Ecosystem is growing - incubators, angel syndicates, private equity companies, network
organisations, government agencies, etc.
▪ It’s IP based therefore more flexible and less capital intensive than traditional
sectors
▪ One of the fastest growing sectors:
▪ Electronics sector in Scotland’s Top 500 companies grew by 63% to >£2b in 2016 (compared
with 7% decrease overall) (Source: Business Insider Jan/Feb 2017)

Why tech is important to Scotland - but!
▪ <50 public companies in Scotland (excluding financial institutions)
▪ Only 4 listed tech companies in Scotland (150 UK):
▪ Craneware, FreeAgent, Indigovision, Iomart
▪ Fast growing companies in Scotland tend to sell-out rather than reach their
potential
▪ Building global tech companies is not in our DNA – yet!
▪ We should be punching above our weight:
▪ Skyscanner and FanDuel should be the norm

Scotland’s ecosystem is not yet configured to
reach its potential
▪ Universities
▪ Research rather than commercially focussed
▪ Stakes in spin-outs much higher than in the US
▪ Government and other agencies
▪ “There is a dire need for Scotland to draw up a 30-year blueprint to achieve its immense
economic potential.” (Source: Sunday Times 5 February 2017)
▪ Lots of initiatives but not coordinated
▪ Business community
▪ Needs to become more entrepreneurial and commercially focussed

Seizing the opportunity – “The State of European Tech
2016”, report by Atomico, November 2016
▪ The future is being invented in Europe
▪ Europe has acquired real traction in what is termed “deep tech”
▪ Artificial intelligence - machine learning, data mining, big data, speech recognition
▪ Frontier hardware - robotics, drones, radar, 3D printing, nanosatellites
▪ Virtual and augmented reality
▪ The internet of things - wearables, smart home, smart city
▪ Why Europe?
▪ Moving from the consumer internet to the industrial internet
▪ Europe has the technological, financial and human assets to flourish in the digital economy
▪ Cultural change – companies are now determined to shape their own destiny

How do we change our culture?
▪ Concentrate more on building companies rather than products
▪ Think bigger - global rather than local
▪ Focus more on the market than the technology
▪ Get “real” about planning
▪ Recruit experienced people early
▪ Develop your leadership and management skills
▪ Get out and talk to potential customers, influencers, competitors, etc.
▪ Learn from successful companies
▪ “Fail” fast

How to compete and win - simple questions
▪ What problems/issues does your company’s technology solve?
▪ Do you know your addressable market, the key drivers, competitors, trends, etc.?
▪ How should you position yourself?
▪ Is your business scalable?
▪ What are your channels to market?
▪ How do you protect your intellectual property?
▪ How do you recruit, retain and motivate the staff you need?
▪ How do you reverse into the future?
▪ Do you know what you are worth?

Craneware – case study
▪ Keith Neilson and Gordon Craig founded the company in 1999
▪ Identified an opportunity for automating billing requirements in US hospitals
▪ IPO in 2007 on AIM
▪ Software used by >25% of all registered US hospitals
▪ Chargemaster Toolkit® ranked No1 product for revenue cycle by KLAS since
2006
▪ Headquartered in Edinburgh with US offices in Georgia, Tennessee,
Massachusetts and Arizona and employees over 200 staff
▪ Market capitalisation IPO £32m, currently £334m

Two Big Ears – case study
▪ Abesh Thakur and Varun Nair two Indian nationals founded the company in 2013
▪ Company founded to commercialise research work undertaken by the founders on 3D
binaural audio technology and augmented reality systems at the University of Edinburgh
▪ May 2014 Neil Heywood and George Elliott put in seed capital and joined the board as
non-executive directors
▪ Company used social media to bring its technology to games developers who were
developing content for VR and AR applications.
▪ Main competitor Dolby
▪ Founders presented at seminars and trade shows in California to present technology and
meet key players in the industry
▪ Company purchased by Facebook in 2016 for an undisclosed sum. Founders now work for
Facebook

Conclusion
If you have a technology/product that:
▪ provides a solution to a real problem for
▪ a large addressable market which
▪ you have worked out how to access
then you should be able to
▪ build a team that will
▪ build a company
that will potentially become a global player

Thank You

Appendices

Hunting for growth – Technology sector’s enduring appeal
 The Technology sector has delivered the highest median
earnings growth historically (2003-2012).
 The sector is also expected to deliver the highest growth
median earnings growth in the period 2014-18
 Structural drivers of growth with Technology pervasive in all
business sectors
 Consistent earnings growth, particularly in Software and IT
services sub-sector.
Sector earnings growth, ex Oil & Gas, Mining and Financials Tech Sector earnings growth
Tech Sector earnings growth, ex-hardware
N+1 SINGER
295

Investing in the UK Technology sector
 Highly attractive sector for growth
 Relatively small investible universe, even
before ARM Plc’s sale to Softbank (de-listed
6/9/2016)
 In the UK, the Tech sector (including
payment companies) represents c. 2% of the
market (Main List and AIM).
 As a comparison, in the US, the Technology
sector represents c.21% of the S&P 500
UK sector size vs. earnings growth profile
Distribution by market cap
 17% of companies (26 companies) represent
83% of market value
 Average market cap is £272M but the
median market cap is £41m
 Limited investor choice
 Gap in the market
No. of companies %Market Cap (£'000) %
Over £1bn mkt cap 7 5% 24,903 61%
£500m-£1bn 9 6% 5,770 14%
£250m- £500m 10 7% 3,192 8%
£100m-£250m 21 14% 3,283 8%
£50m-£100m 31 21% 2,153 5%
Under £50m 72 48% 1,386 3%
Total Tech Sector 150 100% 40,686 100%
N+1 SINGER
296

Thank you
See you in 2018!
www.digit.fyi
#digiscot

Digital Transformation Scotland 2017

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