Category: Innovation

How has the pandemic transformed digital healthcare for patients and practitioners?

Public and private healthcare providers have been encouraged by the digital maturity of customers, and now are using data to shift to more proactive rather than reactive services

As the UK braces itself again due to the emergence of the omicron variant, and with a record 5.83 million people awaiting non-emergency hospital treatment – according to official figures from the end of September – the continued development of digital healthcare services is critical.

The pandemic necessitated the acceleration of digital transformation across the healthcare sector. For example, the National Health Service embraced digital solutions to track and trace, rollout vaccine programmes, and implement various smartphone apps, all of which have been well received.

From a customer experience perspective, there is obviously an appetite for digital healthcare. Granted, this has been fed by the pandemic-induced lockdowns. But it’s telling that the NHS is now seeking to build out its video consultation provision and move to a hybrid offering, using face-to-face consultations when appropriate. This approach reduces costs and is more convenient for patients.

To keep pace with customer expectations, private healthcare providers have also undergone seismic change in the last two years. “It’s been a crazy time,” says James Elliott, head of customer and commercial experience at Bupa Global. “We’ve seen a massive digital transformation, and there is a big opportunity in private healthcare as we move to proactive health management.”

However, legacy problems are halting progress in the digital era, he concedes. “For a long time, we thought that the best thing to do was plaster our telephone number on every piece of paper and membership card, but that has come back to bite us,” says Elliott. Furthermore, 40% of customers contact the organisation via email, an admittedly “horrible experience.”

He adds: “We are trying not to make the mistake of creating infinite loops for customers to fall into, and we want to educate them to make the right choice. We have created a digital-first portal to triage their contact, and that could involve an urgent phone call or an outbound scheduled call.”

We’ve seen a massive digital transformation, and there is a big opportunity in private healthcare as we move to proactive health management

Bupa Global’s LivePerson platform, established before the pandemic, has enhanced its connection with customers leading to a tenfold increase in satisfaction levels. But, as live interactions – even phone calls – are “hard to manage,” Elliott says digital chat “is the answer,” whether via WhatsApp or WeChat in China. “It has to be asynchronous,” he argues.

To better organise the urgency of customer needs, Bupa Global has “put a lot of time and money” into automated systems and conversational artificial intelligence. “We want to build a trusted relationship with our customers, and so improving natural language processing capabilities is key,” adds Elliot.

Alice Pan, chief medical officer and global head of health operations at Bima, a Swedish company that delivers health and insurance services in emerging markets, agrees that developing digital services is what patients and practitioners want. Bima is creating an asynchronous chat function, having been encouraged by the digital maturity of its customers.

The organisation, which operates in nine markets in Asia and Africa, offered a telemedicine service during the pandemic, and it quickly became customers’ preferred channel for first contact, with over half (58%) ranking it top.

While this was a surprise for Pan and her team, completely “shattering preconceptions,” it validated a shift to more digital solutions. And in time, with the customer data gathered from digital interactions, Bima is aiming to provide a more preventative, proactive and personalised service.

“We are getting to know our customers better, and we are collecting data to serve them better,” says Pan. “For the first six months of the pandemic, we learnt a lot, and it was tough; it was all reactive.

“It wasn’t until the latter half of 2020 that we started to think more strategically about what the pandemic meant for mobile health and Bima. Now, though, we have a clear plan of how we can grow in the next five years. “And,” she adds, “it’s exciting, especially for our customers.”

This article, sponsored by Vonage, was first published on Raconteur in December 2021

Leading for the future: how has the pandemic changed those in charge?

In a world where change is the only constant, leaders must be authentic, tech-savvy and human. They have to prepare for the next crisis by empowering employees so their businesses are more agile and resilient

Be honest, how has the coronavirus pandemic changed you?

For most of us, it is only now – more than 18 months after the pandemic hit and as some semblance of normality returns – that we finally have the headspace to reflect properly on this question, answer it truthfully and inspect the mental scars, having been in survival mode for so very long.

Spare a thought, then, for business leaders who, alongside any personal struggles, have been forced to steer their organisations out of choppy waters while faced with cascades of disruption.

The list includes supply chain problems, geopolitical issues, increased pressure to recruit and retain top talent in the so-called ‘great resignation’ age, and the need to engage with a range of stakeholders to facilitate an accelerated digital transformation. They don’t teach this stuff at business school and many will have felt out of their depth, understandably.

The torrents of chaos have eroded everyone to a degree. And businesses and laggard leaders who have not kept up with the waves of change have, alas, been swept away. The response to Covid-19 necessitated the locking down of people, but paradoxically it opened minds. As a result, in the post-pandemic wash-up, the world looks and feels different. 

For instance, videoconferencing technology’s rapid advancement or adoption has enabled businesses to communicate to colleagues and customers, and somehow brought people closer together. Moreover, there is something thrillingly democratising about everyone having the same-size square box on Zoom, Teams or Google Meet, whether a chief executive or a 21-year old, fresh out of university.

New normal: mindset change required

Cybersecurity and global warming have leapfrogged other concerns for boards and consumers alike. In the afterglow of COP26, ‘ESG strategy’ has become a business buzzword, while actions and transparency speak louder than words. And as many are focused on the environment and governance, is the social element the squeezed middle?

As we tiptoe hopefully out of the worst of the coronavirus crisis, leaders have many important questions to answer. How will hybrid working actually work? What business models need evolving or binning? And, most fundamentally, in a world of constant change, how can greater agility and resilience be achieved?

“The US military phrase VUCA – an acronym for volatility, uncertainty, complexity and ambiguity – captures the world in which we now operate,” says Alan Patefield-Smith, chief information officer of insurers Admiral Group. “Everyone has their favourite worry.”

Paul Szumilewicz, programme director for retail in continental Europe at HSBC, bristles at the concept of ‘resilience.’ He says: “What I’ve seen in the last few years, especially during the pandemic, is that ‘resilience’ is overrated. Too often, we have unrealistic expectations of people and particularly leaders.”

Szumilewicz argues that admitting “we don’t know the answer, but we are working on it” shows strength. “There is a positive shift in leaders to accept that being vulnerable makes us more real, more relatable,” he says.

Citing a 2017 Harvard Business Review paper, he continues: “The single biggest factor that triggers oxytocin [a hormone that plays a role in social bonding] in the brain at work is when a leader, manager or colleague shows vulnerability. Resilience is sometimes not as powerful as we think. Being honest about that can have an even more powerful impact.”

Invest in technology but don’t forget people

Simon Finch, supply chain director at Harrods, concedes that “there was a lot of scrambling around to make things work” when the coronavirus crisis and, more recently, Brexit fallout exposed operational weaknesses. He posits that businesses were “obsessed with making supply chains as lean as possible” before Covid, moving items around quickly, with minimal stock and expense. 

“Coronavirus completely screwed up that approach,” says Finch. “From now on, the supply chain must be more about agility, to cope with volatility and uncertainty, and less about being lean. However, that agility has to be fully supported by technology and data insights.” 

Technology alone, though, is not enough. If leaders fail to invest in their people, and that includes themselves, then the much-maligned skills gap will gape even wider. Consider the World Economic Forum estimates that technology will subsume 85m human jobs and 97m new roles will be created in just the next four years. As man, woman and machine work together, leaders should become less robotic and more human.

Indeed, according to Wayne Clarke, founding partner of the Global Growth Institute: “The most essential leadership trait of the 21st century, without a doubt, is empathy. The leaders with the most emotional intelligence will stand out. To better engage staff and improve the employee experience, the most critical question to ask is ‘How do you feel?’”

So go on, be honest.

This article was first published by Raconteur as part of a long-scroll project sponsored by Oliver Wight in November 2021

Seven key steps to improving the digital customer experience

Country manager of UK and Ireland, Matthew Parker from Vonage, a global business cloud communications leader, shares his thoughts on the key lessons from the recent ‘Reimagining digital customer experience and brand engagement’ roundtable event

At the roundtable (written up here), the passion for customer experience came across from everyone, loud and clear. There were plenty of great statistics in there, too; I love stats. I wrote down seven things during the discussion, and these are my key takeaways.

Humans: We discussed the evolution of humans and how technology has to be intuitive. I think there is a link between humans and smart automation. Certainly, natural language processing and understanding sentiments in emails and messages is an area of investment and innovation. As another classic example, though, you want to know where your parcel is on its journey to your door. It’s a commonly asked, simple question that can be solved by automation. Tracking technology means that humans are not needed, but there are plenty of other things that do require human input and touch.

Trust: Someone mentioned trust. And a few people had different definitions of trust, but the two words I took away, linked to developing consumer trust and loyalty, were security and integrity.

The ecommerce journey:  This was another subject. There was a great stat on ecommerce growth: the pandemic spurred a 130% increase in ecommerce adoption. But looking at the ecommerce journey is so important, especially when working out where to remove friction.

Experimentation: Someone said: “Have a go and try digital transformation.” I love that. I attended an Amazon Web Services (AWS) summit a few years ago, and despite that digital transformation had been around for a long time, thousands of people there were wondering where to start. The speaker on stage, from AWS, said: “Just have a go, just have a go, pick your burning platform and just have a go.” In many ways, that’s still going on, which is great to hear.

Brand connection and value exchange: Together these make a potent combination. There has to be something for the customer in return for their data. 

The use of data: This final point wraps the session up nicely. Collecting data in itself is not necessarily a bad thing, but it has to have a context in terms of how an organisation will use the data. That’s the essential bit. Then there is the integration of that data in the customer journey. For example, we all get driven mad if we are on an interactive voice response for 20 minutes and then, having filled out the information, the human customer support person asks us the same questions.

This article, sponsored by Vonage, was first published on Raconteur in November 2021

Reimagining digital customer experience and brand engagement

As companies strive toward a frictionless digital experience, they must find ways to improve customer loyalty and trust. How will digital customer experience evolve in the coming year?

The pandemic-induced explosion of ecommerce and the acceleration of digital transformation means that most companies will re-examine and revamp their customer experience strategies and capabilities in the coming year. With customer loyalty increasingly difficult to gain and sustain, pioneering, data-powered technologies will improve the seamlessness of these digital experiences and deliver better brand engagement.

A dozen leaders in the customer experience (CX) space spanning a range of industries – including healthcare, travel, insurance, and banking – met to discuss challenges and solutions, and debate the direction of travel in the coming year. 

The lively discussion, supported by Vonage, a global business cloud communications leader, examined customer loyalty and trust, delivering CX with less friction, and how digital CX and brand engagement might develop in the coming year.

The conversation took off with Jack Smith, director of digital at British Airways (BA), who stressed the importance of ‘human touch’ with CX, an even more crucial point in the digital age. He said that BA is both “fortunate and unfortunate” because it is a well-recognised UK organisation.

When Smith joined BA, in 2017, there was much work to do on the digital CX front. “The challenge was that the digital channels didn’t represent the same human touch evident on our flights,” he said. “The tone of voice was robotic, like a booking system, and there was no conversation.”

While chatbots and other digital solutions are popular, Smith warned: “These wonderful bits of technology and digital channels miss the point if you are led by tech; you have to remember there’s a person at the other end.”

Lucy Jones, vice president of clinical at Oviva, noted that organisations now have the challenge of meeting ever-rising customer expectations. These have drastically evolved with the shift to digital platforms for ecommerce and thanks to the acceleration of digital transformation in health and communication since the start of the pandemic. As a result, retaining customer loyalty is perilously tricky.

Building trust is a must

“Digital loyalty is not like bricks-and-mortar businesses where the cost and complexity of transitioning [to a rival] is enough to buy a little slack,” Jones said. “In the digital space, it’s simple for that alliance to be lost if we are not meeting customer expectations.” Therefore, she added, it is imperative to build trust through “providing a seamless experience, avoiding wait and holding true to your promises.”

Avoiding friction is essential, agreed James Elliott, head of customer and commercial experience at Bupa Global. “We’re desperately trying not to make the mistake of creating infinite loops for customers to fall into,” he said. “We are attempting to educate customers to make the right choice, but still 40% of them want to contact us via email, which is not an optimal, quick experience. 

Elliott added: “We want to create a digital-first portal to triage and prioritise customer needs, whether it’s an urgent phone call or a scheduled outbound call at their convenience. What you don’t want is to spend 20 minutes searching through the frequently asked questions and then another 20 minutes finding a customer service telephone number.”

Digital loyalty is effectively achieved through more personalised and omnichannel [experiences], but fundamentally it won’t work just with technology; it has to have an emotional connection with the customer

Educating customers was also high up on the list for Dr Alice Pan, global chief medical officer at Bima,a provider of health and insurance solutions for the emerging middle class in Asia and Africa. Digital technologies, she says, can not only support diagnosis and treatment of health conditions but also enable prevention and wellness promotion.

But there has been a learning curve for Bima as well. Lockdowns and the need for treatments led to Bima offering a telemedicine service in the last year, and the uptake has been incredible. “Our internal research shows that after the first use of telemedicine, the percentage of people selecting it as their preferred channel of accessing healthcare went from 5.8% to 58%,” she said. “It shows that trying something for the first time can shatter preconceptions.”

Be true to your purpose

Conny Kalcher, group chief customer officer at Zurich, identified a “major change” in what customers – especially younger generations – expect from organisations. “They want to buy from brands that do good, not just [those] doing well in business,” she said. When Kalcher took up her new role at the global insurance firm in July 2019, she updated the company’s purpose to be more ambitious and less self-interested. 

“It was ‘we are here to protect you,’ but – guess what – all insurance companies are here to protect you,” she said. “It was not a unique message, so we co-created with customers to develop a new, inclusive purpose, which is ‘create a brighter future together.’ The younger parts of our customer base desire not just a brand purpose, but a sense of community. However, if you define your purpose, it’s not just nice words on a piece of paper; you have to live by that purpose.”

However, Dr Anthoula Madden, managing director of customer experience at Accenture, said the supposed digital divide between generations is narrowing. She pointed out that the pandemic triggered a 160% increase in ecommerce from “new or low-frequency users.” She said: “The generational gap around digital seems to be fading away, and more consumers of all ages are very comfortable with shopping online, especially using their smartphones.”

Research from Oviva supported this. Jones said: “I was surprised that 60% of customers across Europe will either mostly or only use a mobile phone for engaging in shopping and interacting with services such as healthcare; and it’s not just those under the age of 25, it’s across the board.”

Additionally, Madden encouraged businesses to invest in technology solutions, but do so in an agile way, testing and learning what might work best. “You need to be prepared to experiment. Fail fast. Just try it out, and if it doesn’t work, try something else.”

Value exchange: more choice and customer empowerment

For Stephen Gilbert, EMEA loyalty solutions director at Collinson, a company that offers loyalty programme solutions and owns airport lounge and experiences programme, Priority Pass, funding tech projects is not enough. He said: “Digital loyalty is effectively achieved through more personalised and omnichannel [experiences], but fundamentally it won’t work just with technology; it has to have an emotional connection with the customer.”

Gilbert added: “That’s the strategy piece you have to determine. There has to be a perceived value exchange between the customer and the brand. That is one of the keys to a loyalty programme.” But, he warned: “If organisations don’t see this as part of their branding and view it as digital marketing alongside a piece of technology, it will fail.”

What you don’t want is to ask people to remember the first, third and seventh digits of a passcode they have not used in years and leave them in a doom loop of password hell.

That insight resonated with Sue Bradley, director of customer experience delivery at Tui, the world’s largest leisure, travel and tourism company. Tui announced it was investing more in advertising to support the launch of the new ‘Live Happy’ campaign and to drive online sales. Bradley revealed the thoughts behind the recent ‘Live happy’ campaign.

“We wanted ‘Live happy’ to be inspirational,” said Bradley. “Tui offers a wide range of products, as well as the beach package holidays which we’re well known for, we also offer cities, tours cruises and ski. Our customers want to know that they are going to have fun when they go on holiday and at Tui, we help create those moments that make life richer. We also recognise the importance of experience. This week we launched the ‘Makers of happy,’ [referring to] our colleagues who make it memorable and personal for our customers.”

Tui has also released a new smartphone application to guide the customer journey. As well as being able to chat to the team 24/7, the app shows flight information, plus details about transfers including coach number and location. “It makes it far simpler,” said Bradley. “But what we found is more than ever, in this time of a global pandemic, people want that human touch.”

Reducing friction: beware the password doom loop 

Integrating people into the digital experience was a key focus for most. Kalcher said: “A younger person might not want to talk to an agent, they prefer to find their own way, while other customers might need that personal assurance. So, it’s all about understanding your different customer segments and letting customers choose how to interact with the company.”

Smith concurred that empowering the customer is vital. But some brands miss the mark in this respect. “People often confuse ‘automation’ and ‘digital,’” he said. “They think that digital is a way to remove and automate processes, and it’s not. It can be hugely enabling, but there has to be that human need and human touch. 

He added: “For example, if you have a healthcare app that provides the patient with all their details and data, they are empowered. But it doesn’t mean they want to be left alone.”

On the topic of friction, Lisa Scott, chief marketing officer of Banked, a global payments network “built on modern bank rails,” said the Strong Customer Authentication rules, introduced by the Financial Conduct Authority, has meant another layer of verification has slowed the online purchase process in the financial services industry – and perhaps that is no bad thing. The frustration, though, is that there are so many methods of secondary authentication across various apps. 

“Do you want that additional verification to be an SMS message notification,” she asked. “Could it be something like your fingerprint or facial recognition? If they can make it simple and quick, and thereby reduce friction, then that’s good. What you don’t want is to ask people to remember the first, third and seventh digits of a passcode they have not used in years and leave them in a doom loop of password hell.”

Direction of travel: be cleverer with data use 

Looking at how CX might develop in the coming years, Ashish Bhardwaj, senior solutions architect at Informa, emphasised the importance of data. Make sure you gather customer data and compliment it with secondary data,” he said. “You can personalise experiences and make relevant, proactive suggestions for the customer. The use of data and the tone in which it is communicated should be a careful choice from the marketing and communications teams.”

Madden confessed to being a “big fan” of the John Lewis app. “It’s amazing,” she said. “It shows your loyalty card, all your receipts, and it’s quite personalised. As long as I can see some value in engaging with that brand, then I will do so, but if you are a brand that keeps bombarding me with meaningless emails, I will block you.”

Looking further ahead, Mohammad Al-Ubaydli, CEO of Patients Know Best, predicted that sustainability could – and should – feature more prominently in CX, for the greater good. He said of COP26 that he sensed a groundswell of public demand for greater environmentally friendly processes.

Al-Ubaydli said: “When I consider the next 10 years in healthcare, the big question is: with an ageing population, how can you continue to deliver universal coverage? Everyone’s talking about not having enough money to help, but even if there was enough money, there are not enough professionals to look after everyone. The only solution is digital. If a person obtains their test results and knows what to do, it avoids clogging up an appointment with the doctor.

With the COP26 refrain of “keep 1.5 alive” possibly still ringing in his ears, Al-Ubaydli suggested that the desire to embrace digital solutions would be much greater in 20 years, as patients strive for more sustainable – and less wasteful – healthcare. “If we want to be able to afford universal coverage structurally, then you must allow people to have the medical data to look after themselves.”

He added: “About 5% of the vehicles on the UK’s roads are related to the National Health Service. Indeed, 5% of carbon emissions in the developing world are healthcare-related. So, if you can prevent the need to travel, stop the need for operations and so on, that is a serious contribution to reducing carbon. By protecting the patient, you protect the healthcare system, and ultimately you protect the planet.” 

Clearly, environmental concerns are one more factor to add to the already complicated world of digital CX, which has undergone incredible evolution in the last couple of years, spurred by the coronavirus fallout. Customers are increasingly demanding, but organisations that fail to keep pace will see brand engagement and loyalty melt away.

This article, sponsored by Vonage, was first published on Raconteur in November 2021

Businesses wake up to the immense potential of TikTok

Companies are increasingly cottoning on to the fact that the video-sharing app, once seen as the preserve of the young, is increasingly a powerful marketing tool to reach all ages

TikTok celebrated its recent fifth birthday by announcing that more than one billion people – almost one-in-eight people on the planet – now use the video-sharing app every month.

And its star is only set to shine brighter: a new social media trends report for 2022 by marketing experts HubSpot and consumer intelligence platform Talkerwalker suggests it will continue to expand and “take over social media”, forcing other brands to adapt. This is based largely on TikTok’s highly personalised feed, which curates different content for each user drawing on known interests as well as previous likes and comments on the platform, instead of simply showing them videos from accounts they have chosen to follow.

Given this colossal global reach and potential, combined with the ability to easily record and edit videos of up to three minutes in-app and then share clips to multiple platforms, it’s no wonder that businesses of all sizes are flocking to the platform. TikTok’s growing corporate appeal, including to B2B companies such as financial and technical services providers, has been boosted by a shift in the user demographic. Once seen almost solely as the preserve of the young, the latest user base statistics show that almost one-in-four users are now over the age of 30.

However, despite this promise, getting started can still be daunting to companies unused to using video as part of their marketing efforts. As inspiration, here are five examples of brands using TikTok in unexpected ways to expand their audiences and boost awareness of their services.

•   Sage

In February, Sage – a cloud business company best known for its accounting software – launched the #BOSSIT2021 Challenge, challenging UK small and medium-sized enterprises (SMEs) to use their creativity to showcase their ‘boss it’ moments inside work or out. Over one million companies took the opportunity to show how they were excelling despite the uncertain times. The overall winner was Broken Planet Market, a recycled fabrics clothing company, which documented the struggle to keep up with storage in the one-bedroom flat it is run from after the company ‘blew up’ on TikTok.  A podcast, a yoga company and a jewellery business were among the runners-up in the campaign, which won the Best Use of TikTok Ads category at the UK Paid Media Awards.

Sophie Fresco, a TikTok specialist for communications consultants Hotwire Global, says Sage is continuing to build on that initial success. “Following the triumph of the #BOSSIT2021 Challenge, it asked followers to use #SageTellMe and create their own videos and explain how they are an SME without saying they are an SME,” she says. “The hashtag has over 4.5 billion views, so far.”

•   Harvard Business Review

The renowned business management magazine posts videos on how to “deal with work, school and life” and has over 1.2 million likes. Its TikTok account is an extension of its global Ascend brand, which targets modern young professionals just starting their careers and is not behind a paywall – unlike the content targeted at more mature workers. Paige Cohen, Ascend’s editor-in-chief, told media trade magazine Digiday that: “We introduce younger people to the brand, help them build better habits, help them make better career decisions. And when the day comes that they’re more in the middle of their careers instead of at the beginning, they will turn to the Harvard Business Review content.” She, and other editors, are the faces seen on TikToks on subjects including interview hacks and tips, and Halloween-themed resumé killers to give “more personality and connection to the brand”.

•   Gymshark

“On TikTok, you’ve got to put entertainment and comedy value before your product,” advises Harvey Morton, digital expert and founder of Harvey Morton Digital. He singles out Gymshark, a British fitness clothing and accessories brand which posts content designed to help its users stay active, as using the platform well. “They have built up a large following from posting consistent, quality videos from workouts, workout memes and inspiration,” he says.

Playfulness seems to be the winning ingredient. Gymshark’s profile description states: “Nothing to do with sharks. Something to do with the gym.” On TikTok, the brand has 3.4 million followers, and its irreverent videos about life in the gym – including men wearing crop tops to work out and pet dogs obediently watching their owners lift weights – have amassed more than 51 million likes.

•   Marks and Spencer

M&S dates back to 1884, but its food division has enhanced its modernity by entering the TikTok scene and using the self-parodying profile description “This is not just any TikTok page…”, in a nod to the brand’s famous marketing tagline. By leveraging the reputation of own-brand sweet favourite Percy Pig, piggybacking #FoodTikTok and responding to viral trends and news, M&S Food has attracted 133,000 followers and over 2.3 million likes. A recent video for Hallowe’en, which showed Percy Pig and friends doing an amusing ‘pumpkin workout’ to a spooky song, generated over 110,000 plays in less than a week.

•   Ryanair

The budget airline offers a perfect example of how a sense of humour can trigger a surge in customer engagement and brand presence on the platform. The consistency and tone of Ryanair’s TikTok output has attracted over one million followers. The formula is simple – often images and footage of its planes with superimposed human facial features, or cabin crew sharing common thoughts – but very effective. Set to funky music, the results are amusing but subtly keep attention focused on the airline’s branding and core product of low-priced flights across Europe.

•    Miss Excel

Used well, TikTok can raise the profile of individual entrepreneurs, too. For example, Kat Norton – aka Miss Excel – has danced her way to becoming a full-time spreadsheet influencer by making Microsoft Excel “fun”. Having attracted over 652,000 followers and had one video go viral with over three million views, she has given up her day job as a consultant to focus on being Miss Excel.

She mostly posts clever dance videos containing shortcuts, tips and tricks for the masses, with a subtle message to seek out her courses. Normally, how-to videos are step-by-step posts, possibly with screenshots with helpful arrows. Not so Miss Excel. The message for other businesses is that it’s not just what you do, it’s how you frame it. Even the dullest of subject matters can become fun and excite with a quirky twist.

“You have to have an element of polarity,” Norton told Quartz, when asked what makes a successful TikTok profile. “When you take something as boring as Excel and something so different like dancing and combine them… people are flabbergasted.

Joining the TikTok revolution

So, now we’ve shown a snapshot of how other businesses are embracing the TikTok opportunity, why should yours join them? Top of the long list of reasons to post on the social media platform are that it’s free to use and videos can be as short as 15 seconds in length, so content can be produced and published quickly. Crucially, you needn’t be a big brand or have a big budget to make TikTok a success.

Additionally, Jon Abrahams, global managing director of virtual office provider Rovva and a big fan of TikTok, suggests bearing in mind that while the playful nature of the platform is forcing brands to be more innovative, quality rather than quantity of content is still key.

“It’s important to remember that your business’s TikTok account is essentially an extension of your brand, and jumping on trends that don’t fit with your core purpose and values can make your response appear out of place,” warns Abrahams. “This can negatively impact engagement with your brand. Essentially, don’t try to do everything that’s trending; if it’s not in line with your brand personality, leave it.”

Lastly, remember TikTok’s stated mission to “inspire creativity and bring joy”. In this spirit, businesses should not be afraid to experiment or try doing things differently. And certainly, they ought not shy away from being either bold or quirky with their videos. While there may be an element of trial and error to begin with, those that craft a winning TikTok marketing strategy will discover it can pay off, handsomely.

This article was first published on First Word Media in November 2021

How business and government can reap rewards of open data

Private sector leaders are wary about sharing data, but if the government offers guidance on artificial intelligence, citizens will benefit from a spirit of innovation

The UK could build a smarter state, improving public services by connecting data from various disparate sources. This will demand greater data sharing between different branches of government – Whitehall, councils, regulators and emergency services – and collaboration between the public and private sectors. 

Working together and sharing data in an open, transparent and secure manner will drive innovation through artificial intelligence and ultimately enable and empower citizens. But progress is stalling in the private sector, due to a combination of poor data literacy at the leadership level, fears of ceding a competitive advantage, and a general wariness of unintended consequences. How, then, can the public sector tap into external data sources and encourage a more collaborative spirit?

While there is no simple answer, the government’s National AI Strategy, published in late September, offers some guidance and encouragement for business leaders. The document, which sets out a 10-year plan to make the country a “global AI superpower”, is the country’s first package solely focused on AI and machine learning.

Chris Philp, digital minister at the Department for Digital, Culture, Media and Sport, is confident the publication will accelerate the development of AI and spark collaboration between public and private sectors. “We want to make sure that there are clear rules, applied ethical principles and a pro-innovation regulatory environment that can create tech powerhouses dotted across the country with the most supportive business environment in the world,” says the Croydon South MP.

He hopes the new strategy will help narrow the skills gap to take advantage of the AI opportunity. And while data sharing is essential, standardisation is just as important; unless data is collected and managed according to common, robust rules, it might be unreliable, which directly impacts on outcomes for the citizen.

Leading by example

Matthew O’Kane is multinational IT consultant Cognizant’s global head of AI solutioning. While he welcomes the National AI Strategy, he argues that the government should take the lead in dialling up collaboration and openness.

“The government can and should set an example in the AI space by ensuring seamless data sharing across government departments,” he says. “Data is the fuel that powers AI, so through the democratisation of data across government, leaders would be able to maximise the potential to extract value from AI investments.”

Fakhar Khalid, chief scientist at Sensat, a cloud-based 3D interactive virtual engineering platform, agrees, and believes universities should open their doors, too. “A clear mindset change is needed from the top down,” he says. “Government must encourage risk in innovation and provide supportive infrastructure and resources to organisations that are willing to take such calculated risks to propel the UK as the global leader in AI innovation.”

According to Khalid, not only are strong, open and transparent collaborative platforms needed within central and local government, but there is also an urgent requirement for more academic research to impact the public and private sectors. 

“While the government must lead the country by example, academia needs to invest more in ensuring their higher education research is fed to the industry more often than it currently does. The UK has a strong academic foundation but is slow to turn those into any commercial success.”

Chicken-and-egg scenario

Dr Mahlet Zimeta, head of public policy at the Open Data Institute, acknowledges that business leaders tend to “hoard” data, but argues that if sharing is done sensitively and sensibly, everyone stands to benefit.

“Organisations are often concerned about unanticipated use cases for their data and who might gain value from it,” she says. “They are nervous because they don’t know what business model to use. It’s difficult, as most use cases only arise when the data has been made available – it’s a chicken-and-egg scenario.”

However, Zimeta points out that there has recently been a “step change in data sharing”, with a range of industries and sectors collaborating to help the response to the coronavirus crisis. There was truly an international effort; for example, science journals changed their subscription models, allowing open access to their papers to accelerate the speed of research and development. 

“It was exciting and shows the benefits to society and the economy when more data is accessible – and as far as I know, no businesses went bankrupt as a result of making their data available.” Finally, while Zimeta calls for more cross-sector collaboration to build a smarter state, she says it’s important not to forget another potential collaborator: citizens themselves. “It’s often presented as ‘private and public’, but civil society is a crucial innovator. This data is vital, too.” She adds: “We need to start thinking about a three-way collaboration.”

Data collaborators, it’s over to you.

This article first appeared in Raconteur’s special report, Building a smarter state and improving public services with connected data, sponsored by Civica, in November 2021

Raise the bar with accounts receivable automation to release cash

Thanks to pioneering technology, there is now a golden opportunity for financial controllers to free enormous sums of tied-up working capital. This will empower employees and enable them to drive value and strategy, writes Kevin Kimber, Managing Director, Global AR, BlackLine

The coronavirus crisis has prompted most organisations worldwide to spend big on automating their financial services – but only a tiny fraction have upgraded their accounts receivable processes. Today, with the advanced technology and pioneering tools available, those who fail to automate their AR processes miss a golden opportunity to empower the finance teams and unlock the cash held hostage.

In November 2019, months before the pandemic hit Europe, PricewaterhouseCoopers calculated that a staggering $1.2 trillion of excess working capital was tied up on global balance sheets. While there is clearly a latent opportunity to free this enormous amount of cash, ahead of the coronavirus crisis automating AR operations was not a priority for businesses.

Back then, the reluctance to focus on upgrading AR processes for the digital age was, to an extent, understandable, given the ease of borrowing for businesses. Now, though, organisations realise that optimising these processes has never been more critical. A recent Institute of Finance and Management survey suggests 55% of finance leaders are less than satisfied with how their company’s AR procedures have performed during the recession. And over half (52%) say that too many manual processes are the biggest weakness.

The combination of the lines of credit being significantly compressed and the increased demand to have cash more readily available – to drive innovation, boost agility and strengthen resilience – has elevated the need to embrace AR automation.

Historically, solution vendors possibly didn’t know how best to position the value and business benefits of automating AR processes. It’s so easy to pigeonhole AR automation as a single process primarily about headcount reduction and driving efficiencies. While these points are valid, there is so much more from which to benefit. 

Articulating the benefits of automating the AR process

Presenting the point that “if you deploy a technology like ours, you can reduce your headcount from, say, 16 to five people” does not go far enough – there are so many additional advantages now. However, if we reframe the case for AR automation, it becomes so much more compelling.

For example, a large, global B2B manufacturer with a high volume of low-value invoices might offer 30-day payment terms. Each day is worth $150 million, so customers paying 63 days late means $9.5bn late and at risk.

Not only is this woefully inefficient, but there is also friction generated between the increasingly frustrated finance team and the customers whom they are chasing for payment.

Deploying technology like BlackLine enables that cash to be collected and applied much faster, giving access to cash quicker, reducing the need to borrow to cover working capital exposure and tightening customer relationships. Ultimately, through artificial intelligence and machine learning, automating that process will enable businesses to unlock the cash held hostage.

More than that, investment in AR solutions starts a virtuous circle: the business becomes more agile, innovative, and resilient – all essential elements for organisations seeking to thrive in the coming months and years – because the cash is available. 

Looking at the broader picture, it’s a fallacy that robots are taking our jobs. On the contrary, they are enhancing and improving them. Humans are empowered to make smarter, data-driven decisions. And at BlackLine, we are transforming the relationship finance teams have with technology.

According to Adobe’s Future of Time study, published in late August, UK business employees waste more than a day a week on low-value tasks that should be automated. So much so that almost two-thirds (59%) of respondents are seeking new jobs with better technology to reclaim work-life balance.

Automation propels finance teams from the back office to driving strategy 

Indeed, the reduction of repetitive manual tasks transforms finance departments to be more human and less robotic – they become enablers rather than blockers. Automating the AR process means that risk is easier to manage. 

For instance, BlackLine AR Automation solutions put key information at the fingertips of organisations – from live payment data to debtor performance – so teams can quickly identify customer trends and maximise cash and debtor performance metrics.

It also helps to optimise relationships with customers. Access to and analysis of the data provides a markedly better understanding of customer behaviours, allowing the finance team to be more proactive, and helpful, when engaging. For example, how and when are they paying? What levels of credit are they on? With managing existing customers and looking for new customers crucial for growth, deepening these relationships is vital. 

Further, when supported by automation and data-hungry AI algorithms, finance teams are propelled from the “back office” to the heart of the business, driving both value and strategy.

Automated solutions, such as BlackLine’s, instantly improve a business’s cash flow, better protect revenue, and boost working capital and customer-centricity. We know what customers need to thrive in the digital age. Armed with our expert help and pioneering tools, they can unlock the cash held hostage while empowering their finance teams. Organisations that prioritise automating AR processes today will win tomorrow.

Small steps to accounts receivable automation – but large rewards

1. Understand that business outcomes are being challenged, unnecessarily. In 2019 PricewaterhouseCoopers estimated that $1.2 trillion of excess working capital was tied up on global balance sheets. A more recent IOFM survey suggests days sales outstanding (DSO) has increased by 59%. Additionally, PYMNTS’s B2B Payments Innovation Readiness Playbook shows businesses that rely on manual AR processes often have a 30% longer average DSO.

2. Most AR processes are not fit for purpose – so say finance leaders. The IOFM survey finds that 55% of respondents are less than satisfied with their AR operation. Over half (52%) report that too many manual processes are the biggest weakness. Further, only 23% have utilised some kind of cash application automation. Notably, the lowest number of days taken to collect debt for those businesses using AR automation is 12.

3. Realise the potential of automating AR processes. Organisations that have upgraded to BlackLine’s AR automation solutions all report huge – and immediate – benefits. “You can reduce your costs by at least 75%,” says the head of credit, Atkins Group. Meanwhile, Veolia’s UK credit manager says the solution “has allowed the credit controllers to focus on collecting cash and managing risk”.

4. BlackLine AR Intelligence delivers real-time insight into customer financial behaviour to mitigate financial risks and improve cash flow and working capital performance. With cash flow vital to every business, AR automation is a future-proofed solution.

This article first appeared in BlackLine’s special report, Optimising the accounts receivable department, published by Raconteur in November 2021

Five ways automation enables finance teams to be more human

As we stride into the fourth industrial revolution, finance teams can work alongside machines to drive strategy and value. And, as the war for talent rages investing in technology is crucial to attract and retain skilled workers

The argument that robots will replace human jobs misses the crucial point that machines empower workers with a pulse. It has been this way for hundreds of years – since the original industrial revolution in the mid-18th century when the Luddites, led by Ned Ludd, a Leicester weaver fearful of change, attacked factories and their owners. However, it soon became obvious man worked much better alongside machine.

Now, as we stride into the fourth industrial revolution, which uses modern smart technology to automate traditional manufacturing and industrial practices, robots are taking over more menial, repetitive tasks. This capability frees up workers to be more human. For finance teams especially, this automation of processes enables them to be more human and drive value and strategy – here follow five ways how.

1. Paper processes are old news

In the finance world, paper has been essential for centuries – but in the digital age, we can speed up processes, and save the trees, argues Nitin Purwar, India-based industry practice director of banking at UiPath. “Within finance, data-intensive and repetitive tasks are commonplace,” he says. “Often further weighed down by legacy systems, paper-based documents and unstructured data, these processes can take up a large proportion of a professional’s day.”

Purwar argues that “this work isn’t what humans are best at and often isn’t what we enjoy doing. By automating these processes, finance professionals can be freed to spend more time on value-added, strategic activities that require judgement and skill, thus enhancing the employee experience all while saving the department time, money and improving the accuracy of processes.”

2. Manual ways of working are highly inefficient – and a turn off for talent

Businesses that embrace automation stand to gain a competitive advantage – not least when it comes to attracting and retaining talent. Adobe’s Future of Time study, published in late August, finds that UK business employees waste more than a day a week on low-value tasks that should be automated. Tellingly, almost two-thirds (59%) of respondents are seeking new jobs with better technology to reclaim work-life balance.

Purwar from UiPath uses an example to explain the benefits of automation in this regard.“One infrastructure solutions firm we work with used to process all invoices manually, printing, signing, scanning and uploading 400,000 invoices a year. Now, a robot affectionately named Archie processes all invoices digitally, freeing up on average 11 minutes per invoice of time that employees can now spend focusing on value-added tasks instead. That amounts to thousands of hours per year saved.” 

There is more potential to realise, which is why organisations should double down on automated solution. Kevin Kimber, managing director of global accounts receivable at BlackLine, suggests that while many businesses seek robotic process automation, now “advancements in artificial intelligence and machine learning take what is possible to the next level”.

3. Financial leaders can show their human skills and improve collaboration

Ash Finnegan, digital transformation officer at Conga, which provides commercial operations transformation solutions, points out that the pandemic has forced financial leaders to show their human sides and manage change.

“Out of necessity, most digital transformation journeys have been accelerated, with artificial intelligence being a major focus,” she says. “Financial leaders have invested heavily in AI and wider automation technology, entirely restructuring their back office to deliver their services remotely.”

Neil Murphy, global vice president at ABBYY, a digital intelligence company, posits workers who embrace automation can “work more efficiently, collaborate better, and ease the burden of administration in their day-to-day roles. Deploying AI-powered robots gives this opportunity, gifting finance teams more time to focus on more creative, problem-solving tasks and alleviate the pressure. Now more than ever, it’s time to put the human touch back into the finance.” 

4. Automation elevates financial professionals to become trusted advisors

Glen Foster, director of small business and partners at accounting software company Xero, says “time truly is money” for financial professionals. Xero data shows these workers can use up to 30% of their time on manual data entry – equivalent to 1.5 days a week.

By contrast, automation and digital software can free up most of that time. “Cloud accounting tools allow you to automate time-consuming tasks like data entry, bank reconciliation and payments so that you can spend more time advising, analysing data and focusing on growth,” he says. 

“Providing advice and insights on financials is more valuable to clients and businesses than manual, repetitive data entry skills. This ultimately sets accountants and finance professionals up as trusted advisors.”

5. Improve relationships with customers – and add value

A FreeAgent survey from 2020 calculated that 81% of accountants have discovered that using automated software has freed up an average of two working hours a week. The same report states that this time saved could generate an additional £68,000 in revenue a year.

John Miller, chief operations officer of Addition, a London-based financial services firm, adds: “Automation has allowed humans to do what they do best: offer advice to the client, knowing that the routine tasks are done robustly and accurately.”

This article first appeared in BlackLine’s special report, Optimising the accounts receivable department, published by Raconteur in November 2021

Will the new national strategy make the UK an AI superpower?

Westminster’s new AI strategy is a step in the right direction, but there are hurdles – particularly concerning regulation, data-sharing and skills – that could hinder the UK’s progress

In the global AI investment, innovation and implementation stakes, the UK lies in a creditable third place. Trailing the US and second-placed China, it holds a slight lead over Canada and South Korea, according to the Global AI Index published in December 2020 by Tortoise Media. The moral of Aesop’s most famous fable involving a tortoise may be ‘more haste, less speed’, but Westminster is seeking to hare ahead in this race over the coming decade. Its national AI strategy, published in September 2021, is a 10-year plan to make the country an “AI superpower”. But what does that mean exactly?

Although Westminster has already poured more than £2.3bn into AI initiatives since 2014, this strategy will accelerate progress, promises Chris Philp, minister for technology and the digital economy at the Department for Digital, Culture, Media and Sport. 

“It’s a hugely significant vision to help the UK strengthen its position as a global science superpower and seize the potential of modern technology to improve people’s lives and solve global challenges such as climate change,” he declares.

The Croydon South MP explains that the strategy has three main aims. These are to ensure that the country invests in the long-term growth of AI; that the technology benefits every sector of the economy and all parts of the country; and that its development is governed in a way that protects the public and preserves the UK’s fundamental values while encouraging investment and innovation. 

“We have heard repeatedly from people working in and around AI that these issues are entirely connected,” says Philp, hinting at the complexity of the task at hand.

What will life be like for people living and working in an AI superpower? “There are huge opportunities for the government to capitalise on this technology to improve lives,” he says. “We can deliver more for less and give a better experience as we do so. For people working in the public sector, it could mean a reduction in the hours they spend on basic tasks, which will give them more time to find innovative ways of improving public services.” 

Philp continues: “For businesses, we want to ensure that there are clear rules, applied ethical principles and a pro-innovation regulatory environment that can create tech powerhouses across the country.”

AI will also be crucial in helping the UK to meet its legal obligations to achieve net-zero carbon emissions by 2050. Pleasingly for Philp, progress is already being made in this field. He notes that the Alan Turing Institute has been “exploring AI applications that could help to improve power storage and optimise renewable energy deployment by feeding solar and wind power into the national grid”.

The artificial elephant in the room is human resistance to data-sharing

The strategy has been generally well-received in the tech world, with most people acknowledging that it’s an important step in the right direction. But some experts have identified a few potential shortcomings.

Peter van der Putten is assistant professor of AI and creative research at Leiden University and director of decisioning and AI solutions at cloud software firm Pegasystems. He is “encouraged to see a shift from broad strategic statements to more concrete, action-oriented recommendations”, but he would have preferred to see a more complete ethical framework for AI application. 

“A large portion of the document focuses on AI governance, but it appears that a lot of the emphasis is still on analysis, discussion and policy-making. There is less on proposing hard legislation or determining which authority will be accountable for governance,” van der Putten explains. “This is an area in which the UK will need to accelerate, given that both the EU and China have made relatively concrete proposals for the regulation of AI recently.”

Liz O’Driscoll is head of innovation at Civica, a supplier of software designed to improve the efficiency of public services. She believes that the UK has “made great progress so far, with many organisations starting to embrace data standards and invest in data skills. But the artificial elephant in the room is human resistance to data-sharing. Privacy remains crucial, especially when it comes to citizens’ information, but wider uncertainty about issues such as regulation, public perception and peer endorsement will also prompt many in the public sector to play it safe with AI.”

There are some encouraging signs that people’s general reservations about data-sharing are softening, thanks to the success of collaborative AI solutions during the Covid crisis, O’Driscoll adds. 

“Sharing data has been essential in our defence against the virus. It has enabled key public services to stay focused on people who are most at risk,” she says. “Success stories have entered the public domain, so we need to make the most of these cases and continue driving further positive change.”

It’s clear that more education about the benefits of data-sharing and work on AI ethics are required, but could a shortage of recruits prove to be the most significant challenge for the national AI strategy? A survey published by Experian in September indicates that more than two-thirds (68%) of UK students wrongly believe that they would need to earn a STEM qualification to stand a chance of landing a data-related job.

Dr Mahlet Zimeta, head of public policy at the Open Data Institute, thinks that the widely held view that “the UK needs to produce more people who can code” is unhelpful at best. 

“Although improving data literacy is important, we’re going to need a much broader range of skills, including critical thinking,” she argues. “Leaders require a change of mindset to maximise the potential of AI. At the moment, it feels as though no one wants to be the first mover, but this is why experimenting and being transparent about the results will drive progress.”

From the government’s perspective, Philp urges both “students and businesses to equip themselves with the skills they’ll need to take advantage of future developments in AI”. For employers, this will include ensuring that their staff “have access to suitable training and development opportunities”, he adds, pointing out that the government’s online list of so-called skills bootcamps is an excellent place to start. Tortoise Media’s Global AI Index ranks the UK fourth in the world on its supply of talent and third for the quality of its research. The country is a relative laggard in terms of both infrastructure (19th) and development (11th), so there is plenty of ground to make up on both the US and China. The national AI strategy suggests that some haste will be required if the UK is to even keep these rivals within its sights. Ultimately, though, if all goes to plan, humanity stands to win.

This article was first published in Raconteur’s AI for Business report in October 2021

Is China dominating the West in the artificial intelligence arms race?

The US has warned that it is behind its historical foe in the East, and the European bloc is also concerned, but there are ways in which the UK, for example, could catch up, according to experts

If you ask technology experts in the West which country is winning the artificial intelligence arms race, a significant majority will point to China. But is that right? Indeed, Nicolas Chaillan, the Pentagon’s first Chief Software Officer, effectively waved the white flag when, in September, his resignation letter lamented his country’s “laggard” approach to skilling up for AI and a lack of funding. 

A month later, he was more explicit when telling the Financial Times: “We have no competing fighting chance against China in 15 to 20 years. Right now, it’s already a done deal; it is already over, in my opinion.”

The 37-year old spent three years steering a Pentagon-wide effort to increase the United States’ AI, machine learning, and cybersecurity capabilities. After stepping down, he said there was “good reason to be angry.” He argued that his country’s supposed slow technological transformation was allowing China to achieve global dominance and effectively take control of critical areas, from geopolitics to media narratives and everywhere in between.

 Chaillan suggested that some US government departments had a “kindergarten level” of cybersecurity and stated he was worried about his children’s future. He made his outspoken comments mere months after a congressionally mandated national security commission predicted in March that China could speed ahead as the world’s AI superpower within the next decade.

 Following a two-year study, the National Security Commission on Artificial Intelligence concluded that the US needed to develop a “resilient domestic base” for creating semiconductors required to manufacture a range of electronic devices, including diodes, transistors, and integrated circuits. Chair Eric Schmidt, the former Google CEO, warned: “We are very close to losing the cutting edge of microelectronics, which power our companies and our military because of our reliance on Taiwan.”

Countering the rise of China

Jens Stoltenberg, the Nato Secretary-General since 2014, echoed the US concerns about how China is galloping away from competitors due to its investment in innovative technology, which other countries have embraced. The implicit – yet hard-to-prove – worry is that the ubiquitous tech is a strategic asset for the Chinese government. But is this a case of deep-rooted, centuries-old mistrust of the East by the West?

 The former Norwegian Prime Minister, ever the diplomat, was at pains to stress that China was not considered an “adversary.” However, he did make the point that its cyber capabilities, new technologies, and long-distance missiles were on the radar of European security services. 

 In late October, Stoltenberg admitted that Nato would expand its focus to counter the “rise of China” in an interview with the Financial Times. “Nato is an alliance of North America and Europe,” he said, “but this region faces global challenges: terrorism, cyber but also the rise of China.”

 Ominously, Stoltenberg continued: “China is coming closer to us. We see them in the Arctic. We see them in cyberspace. We see them investing heavily in critical infrastructure in our countries. They have more and more high-range weapons that can reach all Nato-allied countries.”

 But is China truly so far in front of others? According to the venerated Global AI Index, calculated by Tortoise Media, the US leads the race, with China second. In late September, the UK – currently third in the rankings, slightly ahead of Canada and South Korea – unveiled its National AI Strategy, which sets out a 10-year plan to make it a “global AI superpower”.

 UK plans to become global AI superpower

Some £2.3 billion has already been poured into AI initiatives by the UK government since 2014, though this document – the country’s first package solely focused on AI and machine learning – will accelerate progress, enthuses the Department for Digital, Culture, Media and Sport’s digital minister, Chris Philp. 

“The UK already punches above its weight internationally, and we are ranked third in the world behind the US and China in the list of top countries for AI,” he said. “AI technologies generate billions [of pounds] for the economy and improve our lives. They power the technology we use daily and help save lives through better disease diagnosis and drug discovery.”

A self-styled AI champion and World Economic Forum AI Council member, Simon Greenman, states that the UK is home to the most significant number of AI companies and start-ups (8%) aside from the US (40%). Additionally, venture capital investment in UK AI projects was £2.4bn in 2019. 

“Money isn’t the issue,” says the Checkit Non-Executive Director, when discussing the perceived lack of progress being made by the UK. “The problem is we don’t have enough good commercial AI skills, such as product management and enterprise sales, to put the theory, research, and vision into practice.

“For instance, the ‘Office of AI’ doesn’t have an AI implementation budget. If we’re going to realise the potential that AI can bring to the UK, the government needs to put its money where its mouth is and appoint somebody who has a central budget to implement large-scale AI deployments when it comes to public policy.”

Greater collaboration needed

Fakhar Khalid, Chief Scientist of London-headquartered SenSat, a cloud-based 3D interactive virtual engineering platform, is more optimistic about the UK’s chances of becoming an AI superpower and calls for patience. While he agrees that “the US and China are the leading nations in terms of AI innovation and commercialisation,” he notes that China published its first AI strategy in 2017. The US followed with equivalent plans two years later. 

 “Although these strategies have recently started to emerge in the public and policy domain, these countries have been investing healthily in their ecosystems since the early 1990s,” he says. “In the 90s, the US was not only the leading country for AI education, but its academic innovation also had strong ties with the industry, ensuring a direct impact on the growth of their economy.”

Hinting at the different types of government that enable more collaboration in China compared to the US, the UK, and even Europe as a bloc, he continues: “China, on the other hand, has been radical and ambitious in building its technology capabilities by strongly linking government, academia, and industry to show the beneficial impact of AI on their economy. The government centrally controls China’s AI strategy with hyperlocal implementation.

“The UK’s long overdue AI strategy is a clear indication that we are here to declare ourselves as the key leader in this field, yet we have much to learn from these nations about commercialising our research and creating a strong and impactful link between academia and industry.”

For Dr Mahlet Zimeta, Head of Public Policy at the Open Data Institute in the UK, while China and the US are ahead in the AI race, there are ways in which her country can catch up. “The territories that are lined up to be global AI superpowers are China, US, and the European Union,” she says, “because the great access to and availability of data means the analysis is better. They have massive advantages of scale, but the UK could show international leadership around AI ethics.”

With a greater focus on data skills, standards, and sharing, and encouraging an international collaborative ecosystem driving AI innovation, the West can leap ahead of China. And perhaps, in time, all AI superpowers will work together, in harmony, to the benefit of humanity.  

FSA CIO on her career in tech: ‘It’s where the future is already happening’

The FSA’s groundbreaking CIO talks the future of technology careers, data openness and going beyond the status quo

What makes a successful chief information officer (CIO) in 2021? Ask Julie Pierce, the trailblazing director of openness, data and digital at the Food Standards Agency (FSA), who ranked fifth overall and was the highest-placed woman in the venerated CIO 100 list for 2019. 

Having learnt the news about the CIO 100, which recognises the UK’s “most transformational and disruptive” CIOs, Pierce recalls feeling “happy [and] honoured”. Following a pause, she adds: “And surprised.” Why? “If someone had told me I would be recognised at this level back when I was, say, 30, I would have thought it impossible, for so many reasons. So my reaction was: ‘Oh my God!’”

To an extent, her reaction to the accolade is understandable in an industry dominated by men. But the recognition is also a cause for celebration. Given that only one in six technology specialists in the UK are female and just 10% are IT leaders, the Bristol-based Pierce proudly serves as a role model for other women seeking to reach the top in tech.

The incredulity is misplaced, though, when one considers her groundbreaking 41-year career. After starting off with a misstep in oil exploration – more of which below – she enjoyed 13 years as a consultant at PwC, where she was one of the first female partners. Her CV also includes stints with the Home Office and the Metropolitan Police Service.

More recently, Pierce has excelled as CIO at the Animal and Plant Health Agency and the Department for Environment, Food and Rural Affairs (Defra). In August 2015, she moved from Defra to the FSA, a non-ministerial government department which monitors risks and issues of concern regarding food.

The case for data openness

As director of openness, data and digital (“a long but pretty cool title”) at the FSA, she performs a raft of duties. These include the CIO role, while also covering science and Wales. 

Importantly, Pierce is a fervent advocate of open and transparent data. Indeed, in the public sector, and further afield, the FSA is often held up as an exemplar of what is possible through opening up data. This progressiveness is in no small part thanks to Pierce.

“Being open and transparent [with data] is so important to me,” she says. “And at the FSA it is fundamental to our core being; we are here to be open and transparent on behalf of the consumer.” 

Pierce explains that her agency raises the alarm when “things are not quite right for consumers concerning food safety and authenticity”. As an example, she points to a recently implemented service that uses predictive analytics and machine learning to monitor global risks. 

The FSA publishes 70% of its datasets. Pierce argues convincingly that fellow CIOs should push to open data and drive collaboration internally and externally. The FSA has been trying to persuade businesses to be open and publish their data, she says.

At the FSA it is fundamental to our core being; we are here to be open and transparent on behalf of the consumer 

“We can see the large amount of data collected about food in public and private sector. For instance, we can see the opportunities from data-rich digital platforms where they may be sitting on real insights as to food risk, allowing us all to take action before something goes wrong.”

Under Pierce’s direction, the FSA has “put as much effort as possible in the last few years” to develop the infrastructure necessary to open data and make it “easier for businesses to consume that data”.

Beyond the status quo

Pierce believes in “transformation through the application of modern digital technology and insights from predictive analytics to business problems”. And in a clarion call for fellow CIOs, she has urged on LinkedIn: “Let’s be really different; let’s go beyond merely automating the status quo.”

Pierce has always sought to go beyond the status quo, but she originally had little interest in technology. Having graduated from the University of Wales, Bangor, in 1980 with a first-class degree in mathematics and physical oceanography, Pierce sought a hands-on role in the oil-exploration industry. The fact that it was “completely male-dominated” made it more attractive because of the challenge.

Ironically, she switched directions and flourished when the path was blocked in her chosen profession because of her gender. As a woman, she was forbidden to step foot on either the boats or the rigs. Pierce’s impressive career in tech can be traced back to that early change of tack. 

Let’s be really different; let’s go beyond merely automating the status quo

However, the combination of fierce ambition and talent has elevated her. It is this desire that modern CIOs must possess to excel, she suggests.

“My FSA role includes the CIO and a lot more. That in itself is one of the things I’m most proud of: that I have risen and gone above the CIO role into other aspects of the business.” Indeed, to secure a place in the boardroom, CIOs must demonstrate the many different ways they can add value. 

Pierce says there has never been a more exciting time to embark on a career in tech and climb the ranks to CIO and above. “It’s an absolutely fascinating sector, as it’s moving and evolving so quickly,” she says. “It’s becoming more relevant, ubiquitous, and essential to everything we do. Therefore, you can choose any sector to work in – food, healthcare, financial services, whatever.

“What makes a career in tech so attractive nowadays is that it is accessible in so many more ways compared to when I began. You can come in through some of the more innovative data ideas, such as artificial intelligence or robotics, or via looking at accessibility and the way users engage with the tech, or the hardware route.”

After a final pause, she adds: “It’s the place really where I think the future is already happening.”

This article originally appeared in Raconteur’s Future CIO report in September 2021

Why Covid is no longer an excuse for poor customer service

Businesses can no longer blame the pandemic for suboptimal service, but those that boosted their digital offering are well placed to thrive

Almost 18 months after the UK enforced its first Covid-19 lockdown, some organisations are still using the disruption of the pandemic as an excuse for providing a poor customer experience. 

People were initially more accepting of the suboptimal delivery of even basic services, be it unanswered telephone calls, infuriating delays for goods, or missing out on vital medical appointments. We were collectively numbed by the trauma of the pandemic. Clapping on our doorsteps, we diligently believed that “we’re all in this together”.

Granted, the crisis will leave ugly scars on businesses large and small. It’s evident now, though, with a sense of normality returning – in part thanks to the administration of approximately 90 million vaccinations – that consumers have had enough. They are quick to admonish companies they suspect are taking advantage of the situation and readily call out below-average customer experience. 

This cuts both ways. Recent research from verified reviews platform Feefo indicates consumers are now 29% more likely to leave feedback – good or bad – than before the pandemic.

The latest UK Customer Satisfaction Index – a huge cross-sector measurement of customer service in the UK, with 10,000 consumers rating a total of 45,000 customer experiences – in July found that almost a quarter of respondents (24%) believe that some organisations have used Covid-19 as an excuse for poor service. Specifically, companies that fail to communicate with transparency and authenticity – if at all – are more likely to spur the ire of consumers.

Doubling down on tech

“It has been well documented that businesses are facing ongoing issues with stock, supply chain and staff,” says Jo Causon, CEO of The Institute of Customer Service, which publishes the UKCSI twice a year. “The issue is how the organisation manages the overall experience and communication, helping the customer to navigate the problem, indicating when to expect delivery, offering alternatives and being honest and explicit upfront.”

Moreover, customers expect considerably better experiences compared to pre-pandemic times. Those organisations that continue to blame Covid for poor customer experience risk damaging their reputations irreparably, while ceding market share to progressive competitors who have seized the opportunity to transform and upgrade their offering by investing in technology solutions.

“The past 18 months have exposed businesses’ strengths and weaknesses,” says Causon. “Those that have fared well have embraced new technologies, been proactive with their advice and support, reached out and considered the implications for their customers.” 

Brands that have succeeded during the pandemic and attracted and retained consumer loyalty have “involved the customer in the design and delivery” of new products or services and provided greater “channel choice”, she notes.

This chimes with Celine Maher, vice president of UK and Ireland for customer service software company Zendesk, whose recent research found roughly half of UK consumers will switch retailers after just one bad experience. For multiple disappointments the number rockets to 80%.

“Brands need to be able to meet their customers where they are by ensuring they are putting their needs first,” she says. One option is to take an omnichannel approach to customer experience, Maher adds. “This helps businesses to have meaningful conversations with customers on whichever channel they feel most comfortable with, without needing to monitor across several platforms.”

However, “providing a fast and friendly service is no longer enough”, Maher warns. “In such a period of uncertainty, customers are seeking proactivity and empathy from businesses.”

A hybrid world

Benjamin Braun, chief marketing officer in Europe for electronics giant Samsung, agrees that quick-thinking brands have used the coronavirus crisis to reevaluate their purpose and customer experience offering. They realised an ecommerce presence was imperative to survive, and used customer data to build more personalised experiences and generate loyalty. 

“Almost overnight, a company website was more than just a shop window – it became their only open shop,” Braun says. 

With this shift came an increased need for a better online experience, he adds.

“Customers expected and demanded support at every step of the online shopping journey to replace the traditional in-person shopping support. The rise of omnichannel has been phenomenal and a real mark of success for many brands.”

Brands need to be able to meet their customers where they are by ensuring they are putting their needs first

Conversely, “even the most beloved brand can lose favour if their digital experience isn’t up to scratch”, says Paul Robson, president of international at Adobe. We’re entering a new era in experience, he adds, where digital is the new battleground.

“Suddenly, we went from a world with digital to a digital-first world, and those brands that took the opportunity to invest in the tools that help them build deeper direct relationships with their customers will emerge from the pandemic far stronger than those that didn’t.”

As we venture into this new epoch, which Braun calls “a hybrid world”, he believes that customisation will only get stronger. 

“As consumers return to the high street, they crave an integrated experience that merges the physical and digital domains. As a result, consumers expect a tailored service in-store while continuing to utilise new online services.”

Doubling down on tech and investing in artificial intelligence is necessary for organisations that seek to thrive in the coming months and years, says Braun. “The way brands can embrace customer needs is to put these first continuously,” he advises. “Each shop, online or in-store, must put customer experience at the heart of its service. Data and insights must be leveraged to better tailor every customer experience.”

The prospect of a digital-physical customer experience offering is certainly thrilling for consumers. Brands have no excuse – including blaming the coronavirus crisis – not to invest in technology and engage with customers, wherever they are.

Box: Raising the bar for in-person customer experience

Could improved in-person customer experiences be the key to generating – or rebuilding – consumer loyalty for brands? 

After 18 months of takeaways and luxury home-restaurant kits, for instance, will people still be likely to spend their money at a high-street chain? Or are they going to splash the cash in upmarket restaurants, where the experience feels more special? Time – and data – will tell.

Away from the restaurant industry, though, there’s no time to test and tweak; with the high street back open, and already under severe pressure from the ecommerce boom, businesses have been forced to evolve. Sachin Jangam, partner for retail at Infosys Consulting, says that just-walk-out stores like Amazon Go – the first outside the US opened in Ealing, west London, in March – are a “natural progression of the changes we have already seen in retail”.

Tom Burch, managing director of immersive experience studio Pixel Artworks, notes that Lego charges $15 for a unique, interactive 20-minute experience at its flagship New York store. This so-called “retailtainment” is groundbreaking.

“That Lego can charge for this experience is proof of the shift in market demand,” says Burch. “I’m sure we’ll be seeing such experiences coming to major UK city centres. Stores will begin to better delineate between what digital can do and what only stores can deliver.” 

Physical retail will continue to shift towards fully immersive brand playgrounds, says Burch.

“Retail stores might even have no physical stock, but engage their customers with creative and unique augmented reality opportunities, with purchases delivered to your door,” he adds. “Ultimately, successful retailers understand that consumers want a shopping experience from stores, not just to buy stuff.”

This article first appeared in Raconteur’s Customer Experience and Loyalty report, published in September

How critical infrastructure is dealing with the threat of cyber attacks

A crippling ransomware attack on one of the largest fuel distribution networks in the US has brought into sharp focus the cyber threats facing infrastructure of national importance

In 2020, the Cybersecurity and Infrastructure Security Agency alerted the US to the risk of a devastating cyber attack on a crucial system of national importance. On 7 May this year, the UK’s National Cyber Security Centre (NCSC) issued a stark warning along similar lines. By coincidence, it was the same day that hackers would cripple one of the largest fuel distribution networks in North America. 

The taking of the Colonial Pipeline brought the authorities’ worst fears to life. The ransomware attack disabled the 5,500-mile network, causing fuel shortages in the south-eastern states of the US and prompting the Biden administration to declare a state of emergency. Although the Colonial Pipeline Company’s CEO, Joseph Blount, controversially paid the $4.4m (£3.2m) ransom, the network was out of action for a week.

Transparency and trust are key to having robust and executable action plans. Everyone has a role to play in security

This case was “not shocking” to Sarah Lyons, the NCSC’s deputy director for economy and society. There had been warnings aplenty. Only three months previously, for instance, a hacker unsuccessfully attempted to poison the water supply of Oldsmar, a city in Florida. 

“The pandemic has exacerbated cyber attacks targeting organisations, including providers of critical national infrastructure, which will always be an attractive target,” she says. “The Colonial Pipeline incident confirmed our belief that any such attack could have wide-ranging societal ramifications. It also gave us a glimpse at the kind of attack with a physical impact that could materialise in future if connected places providing critical public services are compromised.”

Fatal warning: potential cyber-physical attacks

The way that critical national infrastructure has evolved to use interconnected digital networks makes it far more vulnerable than it used to be, according to Lyons, who believes that the risks could be even greater when 5G is more widely adopted. 

“Regulated industries such as telecoms and energy are being connected to unregulated services and suppliers,” she explains. “These industries, which we all rely on daily, are an attractive target for a range of threat actors, unfortunately. A successful attack could cause significant disruptions to key public services and compromise citizens’ sensitive data.” 

Lyons urges operators to “recognise that it’s vital that we ensure these networks are resilient to cyber attacks. In a worst-case scenario, a successful one could endanger people.”

George Patsis, CEO of Obrela Security Industries, agrees, warning that “the sky is the limit” when it comes to the extent of the damage that cyber attacks on critical infrastructure could wreak. “These have the potential to be cyber physical, putting many people’s lives at risk,” he says. 

Patsis uses the London Underground as an example. “Computers control the timing of when trains arrive at junctions. If someone were to infiltrate the network and alter their synchronisation by only a few seconds, it could cause multiple fatal crashes,” he says.

Most worrying is a lack of robustness in operational technology (OT) security, which Gartner defines as “practices and technologies used to protect people, assets, and information; monitor and/or control physical devices, processes and events; and initiate state changes to enterprise OT systems.”

Patsis says: “As OT increasingly becomes internet-enabled, it creates new attack avenues. There is now a big focus on securing OT in the same way we do the IT estate.” 

While he notes that the Colonial Pipeline affair has been a “huge driver” for improving OT security, Patsis stresses that there is much work to do in this area.

Unique challenge: securing operational technology

Theresa Lanowitz, head of evangelism at AT&T Cybersecurity, takes much the same view. “With the convergence of IT and OT systems, there has been an exponential growth in internet-of-things devices that has heightened concerns about the digital security of these systems,” she says. 

Lanowitz calls for a “mindset shift” in securing OT assets. “Legacy infrastructure has been in place for decades and is now being combined as part of the convergence of IT and OT,” she says. “This can be challenging for organisations that previously used separate security tools for each environment and now require holistic asset visibility to prevent blind spots. Attacks are coming from all sides and are creeping across from IT to OT and vice versa. Organisations should adopt a risk-based approach that recognises that there is no perfect security solution.” 

She continues: “Enterprises that strategically balance security, scalability, access, usability and cost can ultimately provide the best long-term protection against an evolving adversary.”

Has the Colonial Pipeline attack encouraged infrastructure providers to take more effective defensive measures? “Frankly, not enough,” argues Rob Carew, chief product officer at Arcadis Gen, the digital arm of Arcadis, a Dutch engineering consultancy. “There is still a disconnect between cybersecurity and critical infrastructure.” 

He suggests that cybersecurity is widely seen in the sector as an “add-on”, rather than intrinsic, when it comes to monitoring the health of critical infrastructure.

“The problem is compounded by ageing hardware and software technology, which can often be exploited through unforeseen vulnerabilities,” Carew says. “Transparency and trust are key in having robust and executable action plans. Everyone has a role to play in security. If it becomes a regular topic of conversations among asset owners, operators, managers, maintainers and the supply chain, it will become part of the organisation’s DNA.”

Actions, though, speak louder than words. While the Colonial Pipeline incident may have set alarm bells ringing, there is still – months later – high panic across the infrastructure network, with the cybercriminals seemingly better equipped to expose vulnerabilities and gain financially from doing so.

This article first appeared in Raconteur’s Future of Infrastructure report in September 2021

Five ways to better manage supply chain disruption

The fallout from the pandemic exposed deep-rooted issues and a worrying lack of visibility, but these practical insights will help in case of future crises 

1. Don’t focus on cost alone

The countless stock delays and shortages over the past 18 months caused by a lack of preparedness and agility for the coronavirus-induced disruption have, for the first time in decades, called into question the running of lean supply chains designed to boost efficiencies and profits. They have laid bare a fragile and complex system that “has ultimately morphed into an investment plan focused on quick fixes and last-minute saves”, according to Patrick Van Hull, industry thought leader at Kinaxis, a global supply chain management company. 

Malcolm Harrison, group chief executive of the Chartered Institute of Procurement and Supply, agrees that many had seemingly dialled-up risk in the hunt for greater financial rewards. “Ensuring resilience and achieving value have always been the overarching objectives for procurement and supply professionals,” he says. “Focusing on cost alone is a risky strategy for any organisation. We’ve had decades of strong, lean and sometimes single-sourced supply chains working so efficiently that we hardly noticed them.”

The pandemic, he says, has encouraged supply chain managers to renew their focus on multi-supply strategies, local sourcing and best value in the supply chain, including working with competitors.

2. Invest in technology

Dirk Holbach, chief supply chain officer of laundry and home care at Henkel, says it was a tremendous advantage that his organisation was already far along its digital transformation journey before the pandemic. “The real-time visibility along our supply chain, which is a result of deploying Industry 4.0 technologies, allowed us to focus on the right challenges and to make the best decisions,” he says.

Van Hull points out that companies invested in digital transformation pre-pandemic were financially outperforming industry averages and surged further ahead of rivals over the past 18 months. “These types of results present a significant opportunity for supply chains, which historically have struggled with translating operational capabilities and digital transformation into financial success,” he says. 

3. Develop supplier relationships

While investment in technology is vital to increase supply chain resilience, old-fashioned human-to-human talking to solve problems is just as important when disruption inevitably strikes. Developing and nurturing supplier relationships accumulates mutual trust that can be cashed in when required, whether that buys favourable prices, shorter lead times or extra stock.

And, as the idiom suggests, a problem shared is a problem halved. “Embrace collaborative supply chain risk management,” urges Dr Alireza Shokri, associate professor in operations and supply chain management at Northumbria University. “Invest time in a collaborative culture, build trust and use these relationships to strengthen prevention and mitigation strategies.”

Shelley Harris, commercial director of IPP, which pools and provides pallets and boxes across Europe, agrees. “Our partner relationships are key, helping us to face new challenges as well as to work as efficiently and productively as possible,” she says.

The strength of its supplier relationships has allowed IPP to continue to fulfil its customer deliveries, despite the challenges the wider industry is facing, notably driver shortages. “We’re stronger because of long-standing relationships – we’ve seen a minimal impact on our operation and resulting service to our customers,” she says.

4. Improve transparency

The number-one way to manage disruption, according to Harrison, is a deep understanding of your supply chain and a focus on transparency. While this requires the right technology, as businesses have had to operate more efficiently in the digital space with more automation, it starts with understanding the different tiers of the supply chain. 

“Transparency across all tiers of the supply chain is a challenge,” he acknowledges, “but that visibility contributes to value in that it [helps to] remove fraud and corrupt practices and [helps businesses] look for signs of modern slavery among their suppliers.” 

Harrison stresses it is important to understand the robustness of different suppliers – and their suppliers. Transparency allows a business to identify potential problems, for example if a component is sourced from a single country or location and to track shipments.

This chimes with Van Hull’s thoughts. “Increased transparency is highly desirable for supply chains to sense disruptions as they are happening and respond immediately,” he says. “That is even more useful when it can be tied to financial outcomes, such as reduced inventory and cash buffers, improved capacity utilisation and lower cost resolution of demand-supply mismatches.”

5. Get the training right

Holbach believes training is imperative to maximise the potential of technology solutions. Empowering local teams and using their expert knowledge will strengthen the supply chain. They will flag potential issues early, giving the network a better idea of where to go for help with routing or stock if required. 

“We’ve had to react with agility during the pandemic and that was only possible by trusting our teams worldwide,” says Holbach. “It created the freedom to act fast, find the best solutions and keep our customers and consumers supplied with essential products.”

He believes a progressive approach to training starts from the top of an organisation. “As leaders, you should never stop learning,” he says. “To prepare for the unknown, you have to have the right mindset when confronted with new and difficult situations.”

Harrison echoes this insight, saying that supply chain professionals need to be equipped with the right skills and commercial judgement, which can only be achieved through training and development. This means being up to date, qualified, informed and skilled.

“What this pandemic has shown is that you need to invest in both technology and people to ensure supply chains are resilient, then we will manage better through the next global shock,” he says.

This article was first published in Raconteur’s Supply Chain Resilience report in September 2021

Box cleverer: how to cut waste in ecommerce packaging

The pandemic-driven boom in online shopping has highlighted the challenge facing etailers and brands in finding packaging solutions that are sustainable and accessible, yet also cost-effective and secure

A meme on social media showing a tearful woman with a caption that reads “I get more Amazon boxes in a week than I can fit in my recycle bin” sums up the problem with packaging in 2021. 

The growth of ecommerce since the start of the Covid crisis – online sales in the UK during the first quarter of this year were 54% higher than the total for Q1 2020, according to research by Adobe – has heightened concerns about packaging waste. 

On the one hand, online shoppers complain about excessive packaging. On the other, a purchase that arrives damaged, needing to be returned and replaced, will have a far bigger environmental impact. 

While consumers are becoming increasingly eco-conscious and mindful of waste in packaging, etailers must consider several other factors, including cost, security and accessibility (23% of online shoppers in the US have damaged at least one purchase during the unboxing process, according to packaging firm DS Smith).

In December 2020, the Chartered Institute of Marketing (CIM) warned that the growth in ecommerce was the main reason why 85% of the UK consumers it polled thought that etailers were using too much packaging. Amazon was singled out as the worst offender by far, but other big companies attracting criticism included Asos and supermarkets Tesco, Sainsbury’s and Asda.

“We know the lockdowns have changed buying behaviour and there has been a considerable increase in online purchasing, which means more home deliveries,” says the CIM’s marketing director, Gemma Butler. “Even where companies have improved their packaging, the increased volume of purchases will naturally push up the amount of packaging in circulation.”

Innovation needed: recycling is not enough

Stressing the need for innovative packaging solutions, Butler calls for an update of the popular ‘reduce, reuse, recycle’ maxim. 

“Recycling cannot be seen as the answer,” she argues. “It should be considered only after reducing and reusing. Our recycling infrastructure cannot support the volume and variety of packaging in circulation, so most of the material still ends up in landfills. Organisations must rethink not only the materials they use in their packaging, but also the lifecycle of that packaging.”

A pan-European survey conducted by DS Smith in March supports her view. Nearly half (46%) of the consumers it polled said they wanted to see more cardboard or paper-based packaging, rather than plastic, while 58% wanted an overall reduction in the volume of packaging. Most notably, almost a third reported that they had stopped buying certain brands because they considered that their packaging was not sufficiently sustainable.

Organisations must rethink not only the materials they use in their packaging, but also the lifecycle of that packaging

Another finding – that 22% of UK respondents don’t always have room in their recycling bins for all the packaging they receive – is one that’s “disturbing” to DS Smith’s sales, marketing and innovation director, Marc Chiron. “Some boxes are being put to good use – people are reusing them for storage, for instance – but many aren’t finding their way back into recycling streams,” he reports.

Awareness about packaging that’s “fit for the circular economy and ecommerce age” is growing steadily, according to Chiron. “Companies can contribute by choosing solutions that eliminate waste and keep materials in use. But this goes beyond material choices, as supply chains need to be optimised to avoid the unnecessary use of transport too. That would be the win-win outcome for business and environment.”

Win-win: sustainable and branded packaging

Chiron adds that high-quality branding that explains an etailer’s approach to sustainability in packaging has become a key marketing tool. 

“Storytelling is a growing trend in the retail sector. It can elevate on-package branding to the next level,” he says. “Innovative businesses are using packaging that conveys their craftsmanship and passion. This enables a company to connect with customers in new ways, eliciting emotional responses and making it easier for them to identify with the business and its products.”

Jonathan Dixon, senior vice-president of sales at Arla Foods UK, agrees that it is crucial for “brands to get their packaging right”. He notes that ecommerce sales in the grocery sector are 70% higher than they were at the start of the pandemic – and that consumers spend only 15 minutes doing their weekly grocery shop online on average, compared with 43 minutes in a supermarket. 

“For new brands, packaging is their main marketing tool when selling online,” Dixon says. “It must therefore stand out to prevent shoppers from scrolling past.”

Companies that have created sustainable packaging solutions in recent times include Italian pasta brand Barilla. It adopted 100% paper-based containers in May 2020, taking out the plastic front windows that had made the packs less easy for consumers to recycle. Its move followed that of rival brand Napolina, which in September 2019 had switched the packaging of some lines from plastic to cardboard. Napolina estimates that this change has taken 16 tonnes of plastic out of the waste stream each year in the UK alone. The company is has started to extend plastic-free packaging to its core range in a bid to push the total up to 200 tonnes.

Wilkinson Sword recently switched to plastic-free packaging when it relaunched its Hydro shaving razor range. The change has removed 88 tonnes of PET and 35 tonnes of virgin paper from its supply chain every year, achieving a significant cost reduction in the process.

Wayne Snyder is vice-president of retail industry strategy for EMEA at Blue Yonder, a US specialist in supply management software. He believes that technology can help businesses struggling to strike a balance between packaging cost, security, accessibility and sustainability. 

“Retailers cannot look at any of these factors in isolation,” Snyder argues. “Each requires a different weight based on its characteristics as well as the business strategy. While this task may seem daunting, new AI technologies will enable an optimised method that factors in these questions to find the right balance.”

It’s clear that consumer brands looking to thrive in the ecommerce age must make sustainability a priority and think both inside and outside the box when it comes to packaging.

This article first appeared in Raconteur’s Future of Packaging report, published in July 2021

How National Lottery players helped prepare Hege Riise’s football team for Tokyo

GB women’s football team leader David Faulkner explains how funds from The National Lottery paid for acclimatisation equipment to help Team GB cope with Japan’s 35° heat

Team GB women’s football team will make history on Wednesday July 21 by playing its first competitive overseas match, against Chile in Sapporo. The only other occasion a British women’s team has played at the Games was at London 2012, when Hope Powell’s side suffered a 2-0 defeat to Canada at the quarter-final stage. 

David Faulkner, Team Leader of GB women’s football, says that Hege Riise’s squad is primed and feeling optimistic about a medal-winning run. But he stresses that adequate preparation would have been impossible without National Lottery support. 

“Bringing together a GB women’s football team for the first time has been a long time in the making,” says Faulkner from the Yokohama camp. He was awarded an MBE for services to sport in the Queen’s Birthday Honours earlier this year, and says National Lottery support means “the team is in the best place possible to compete against the world’s best as Great Britain, which is in itself unique”.

“The team arrived in Japan with a high level of confidence after completing a demanding schedule at Loughborough University, while evolving the team culture as part of ‘One Team GB’ – much like the British and Irish Lions.”

Before flying to the Japanese capital on July 7, the women underwent a gruelling three-week training camp. With temperatures in Japan expected to reach 35°C and humidity hitting 95%, the team used an acclimatisation chamber at Loughborough University, thanks to Lottery funding.

The chamber is a cross between a sauna and steam room, and the players were forced to exercise daily on Wattbikes with the temperature turned up, replicating the hot and humid environment expected. The physical and mental demands of the acclimatisation sessions should pay off when the competition kicks off, says Faulkner.

“There is no question that without The National Lottery’s support we would not be in a position to have the dedicated accommodation, food, gym, and an acclimation area and training pitch,” Faulkner says. “We cannot thank those that play The National Lottery enough for the funds that have provided the team with the best preparation possible for the Tokyo Games.

“Not only did it provide a high-performance environment for such intense preparation, we were also able to make it Covid-safe with our protocols and testing. We are extremely grateful for the support that has enabled us to set up such a unique performance environment where every additional percentage gained will have such an impact with delivery in Japan.”

On the extra costs required due to coronavirus precautions, the 58-year old continues: “Covid places many more demands on players and staff, such as testing every day in game time, wearing masks and social distancing at all times. However, the funding has ensured there remains a performance focus across the elements of technical, tactical, physical and psychologically.”

Nigel Railton, Chief Executive of The National Lottery operator, acknowledges the role of those who play The National Lottery in helping Team GB’s Olympians and Paralympians this summer. “Every day, National Lottery players make a huge difference to communities across the UK. Their support has a real impact on a sport and in boosting the chances in Tokyo.”

Former hockey full-back Faulkner, who earned 225 international caps, captaining both England and Great Britain, knows what it takes to achieve, having won at Seoul 1988. “To win a medal you must ensure you reach the semi-finals,” he says. 

Following the first Group E match against Chile, Riise’s side takes on hosts Japan on Saturday July 24 and Canada next Tuesday July 27.

“The players and staff are highly motivated, relishing the challenge ahead and ensuring every element of performance that can make a difference to delivery on match day is covered,” says Faulkner. “A podium finish would be a fantastic achievement for this group – but they have the energy, depth and talent to finish at the peak.”

Whatever happens, Faulkner is thankful for The National Lottery funding, which has been supporting Team GB since 1998 – two years after the Atlanta Games when Great Britain won only one big prize.

“Quite simply, the funding has provided the opportunity for more athletes across more sports to be the best they possibly can be at the pinnacle level of sport,” adds Faulkner. “At the same time, the investment has helped develop a performance system that is the envy of other sporting nations, which has resulted in consistent medal-winning performances at every Games since 1996. This, in turn, continues to inspire the next generation of Olympians, which is the true legacy of the funding.”

This article, sponsored by Camelot, first appeared in The Telegraph in July 2021

‘Just do it’: digital transformation lessons from Estonia

The Baltic state is a digital trailblazer, having made 99% of its public services available online. The government’s CIO, Siim Sikkut, offers his advice for businesses contemplating their own transformations

The smallest of the Baltic states by both area and population, Estonia has served as a political pawn in the hands of several neighbouring powers over the centuries. Since regaining its independence after the collapse of the Soviet Union 30 years ago, this republic has been punching massively above its weight in one respect: technological innovation.

In 2005, for instance, it was the first country to enable online voting. In 2012, it was the first to use blockchain technology for governance. By the time that Wired magazine named Estonia the “most advanced digital society in the world” in 2016, almost all public spaces in the country had been served by free Wi-Fi for a decade. Today, under the government’s so-called e-Estonia programme, 99% of government services are accessible online, while 70% of the country’s 1.3 million citizens regularly use digital ID cards. 

“We joke that our e-services are impossible only for marriages and divorces – you still have to leave the house for those,” says the man in charge of e-Estonia, Siim Sikkut, who has been the government’s CIO since 2017. 

He explains that the country desperately needed a technological “reboot” after gaining its freedom from the debilitating grip of Russian rule in 1991. With this in mind, the state committed itself to electronic governance – a decision that established a digital-first approach on which the country’s pioneering innovations have been based ever since. 

Sikkut, who also chairs the national task force on artificial intelligence, graduated from Princeton University with a degree in public and international affairs in the same year that online voting started. He initially joined the Ministry of Finance before becoming a digital policy adviser at the Ministry of Economic Affairs and Communications, when he co-founded Estonia’s ground-breaking e-residency scheme. Among other things, this offers entrepreneurs based anywhere in the world a digital ID granting them and their businesses remote access to markets in the EU.

Spearheading the world’s digital revolution

Sikkut, 38, is modest about the role he has played in creating what the e-Estonia website calls “an efficient, secure and transparent ecosystem”.

“I stand on many shoulders,” he says. “When I moved to my current role, it wasn’t a question of what to digitise next. All the low-hanging fruit had been picked. It has been about how to keep going to the next level of digitisation. We need to keep everything running while innovating and iterating.”

I hope that our experience in Estonia shows that it’s not rocket science. With commitment, anyone can achieve a digital transformation 

What might have been classed as a risky commitment to technology three decades ago has fostered a more progressive and open society, both online and offline, according to Sikkut. A Eurobarometer survey in 2018 found that 49% of Estonians trusted their government, compared with the EU-wide average of 34%, for instance. 

Indeed, it is said that in Estonia you are only two calls away from the prime minister – the implication being that people in this small country are community spirited and willing to help each other out.

Size matters: but trust trumps all

“It does help that there are few degrees of separation here,” Sikkut says. “With our small population, we get things done – both the connection and decision cycles are much shorter here than in other countries. But our talent pool is much smaller too, so our size is both a constraint and an opportunity.”

It’s no coincidence that the capital, Tallinn – where Sikkut lives with his wife and their three young children – is often referred to as Europe’s Silicon Valley. Estonia is estimated to have produced more start-ups per capita than any other European country in recent years. According to Startup Estonia’s online database, 1,104 enterprises have been established in the country since 2013 – including Uber rival Bolt and payment company Wise (TransferWise until it was renamed at the start of this year).

Any entrepreneur seeking to up the pace of their business’s digital transformation has much to learn from Estonia’s experience. Sikkut believes that strategic partnerships are key in this respect. He points to e-Estonia’s soon-to-be-launched digital testbed framework, a collaboration model that will offer free access to the government’s tech stack, on which any business worldwide can build new products or services and gain proofs of concept.

“I’d say to business leaders: ‘You have to be open for innovation and open to partnership,’ like we’re trying to be with our testbed framework. If someone comes to you with a good idea, take it on board, try it out and then perhaps you can move more quickly,” he says. “We’re looking to increase the speed of innovation in Estonia again by being open and encouraging experimentation with new ideas. The emergence of AI has been a game-changer, for instance, as we embark on this new stage of digitisation.”

Taking people with you

What other advice would Sikkut offer business leaders looking to introduce new digital tools and services? 

“If you build something that saves people time, money or effort and offers them value, they are likely to use it and refer it to others,” he says, adding that “you still might want to throw in incentives for people to start using them. For example, we offer much quicker tax reimbursements to those who complete their forms online rather than on paper.”

Sikkut stresses that it’s essential to spend an adequate amount on training people in how to use new digital tools. “We’ve invested in infrastructure and worked on skills to ensure that people can use our online services. You have to take care of your users so that you can bring them along with you,” he says.

His advice for any entrepreneur who may be approaching digital transformation with trepidation is to learn from his country’s success and stop dithering. 

“Just do it,” Sikkut says. “You’ll never have a perfect plan. Take an engineer’s attitude: try things out, fix them if they fail and try them again before scaling up your operations. I hope that our experience in Estonia shows that it’s not rocket science. With commitment, anyone can achieve a digital transformation. You don’t have to build everything from scratch. There are solutions that you can reuse and you can partner with people who’ve gone through it already – including us here in Estonia.” 

He continues: “The latest technology will probably not solve all your problems. What matters most is being open to possibilities and open to partnerships. If you give bright people a conducive environment, magic will happen.”

This article was first published in Raconteur’s Business Transformation report, published in June 2021

Will Bitcoin’s energy issues turn off investors?

Crypto’s energy use might worry eco-conscious investors, but there are reasons to hope for a greener future

Cryptocurrency has long had a dirty secret: the energy needed for bitcoin mining. 

Crypto evangelists – who believe a decentralised financial system is for the greater good – tend to ignore this inconvenient truth. In May, however, when Tesla boss Elon Musk decried the environmental effects of the mining that goes into validating bitcoin transactions, the energy issue became a burning topic. 

It’s a big problem for cryptocurrencies because the majority of investors (77%) are aged under 45, according to a study published earlier this year by Gemini Exchange. These consumers are also more eco-conscious than older generations. Indeed, Musk’s damning assessment arrived at the same time that a Pew Research Center study found that 37% of Gen Z and 33% of millennials in the US cite climate change as their top personal concern.

Unsurprisingly, some worry that these investors could sour on bitcoin and other energy-draining cryptocurrencies. Bitcoin in particular is a victim of its own success, at least when it comes to environmental concerns. This is due to its ‘proof-of-work’ protocol: a decentralised consensus mechanism that requires members of the network to expend effort solving an arbitrary mathematical puzzle so that no one can hijack the system. 

It’s a vicious correlation, because the higher bitcoin’s market value – in February it easily became the quickest asset in history to reach $1tn, after only 12 years – the more energy is consumed.

The latest bitcoin bull run, which began at the end of 2020, has sparked a surge in mining, bringing with it increased energy consumption. It’s no coincidence that China’s government has cracked down on crypto: the vast majority of bitcoin is mined there, driving up energy demand and making it harder for the country to achieve its target of net-zero emissions by 2060.

Solving the proof of work energy issue

Currently, bitcoin would rank as the 32nd-highest nation in the world by energy consumption, ahead of the Netherlands. Bitcoin and ethereum between them consume more than three quarters of the electricity used by all cryptocurrencies. Notably, the other three on the list of the five worst offenders – dogecoin, bitcoin cash and litecoin – all use the ‘proof-of-work’ protocol.

Bitcoin’s energy consumption has more than quadrupled since the beginning of its last peak in 2017, says Charles Hoskinson, co-founder of ethereum – the second largest crypto by market capitalisation. “It’s set to get worse because energy inefficiency is built into its DNA,” Hoskinson argues. As chief executive of global blockchain engineering firm IOHK, he’s also the driving force behind third-generation cryptocurrency cardano.

According to Hoskinson, bitcoin’s carbon footprint will “become exponentially worse because the more its price rises, the more competition there is for the currency” and thus the more energy it consumes. 

Other, greener consensus mechanisms are gaining in popularity, such as the ‘proof-of-stake’ blockchains that underpin cryptocurrencies like cardano, polkadot and algorand, and don’t require mining. Proof-of-stake uses considerably less energy than proof-of-work chains, because “network participants are chosen to validate ‘blocks’ of transactions based on how many coins they hold rather than the computational processing power they have”, Hoskinson explains. He estimates that cardano is “four million times” more energy efficient than bitcoin.

Going green, one block at a time

Monica Long, general manager of RippleX, which provides open-source code and developer tools to accelerate interoperable blockchain technology, agrees that proof of work is “very energy intensive”. However, she says things are changing rapidly, noting that ethereum will shortly be switching to a proof-of-stake protocol that is expected to reduce electricity consumption by 99%.

She welcomes both the Bitcoin Mining Council, unveiled by Musk in May to monitor and improve the industry’s sustainability, and the Crypto Climate Accord, which is a private sector collaboration focused on making all blockchains carbon neutral by 2030.

Ultimately, not only does digital money offer many great advantages, but it’s a step towards a greener future overall

Rhian Lewis, author of The Cryptocurrency Revolution: Finance in the Age of Bitcoin, Blockchains and Tokens, says it’s vital to keep things in perspective. “Modern life is by its very nature energy intensive. In the US alone, the energy consumed by inactive household devices left on standby every year would power the entire bitcoin network for 1.9 years.”

And when people compare the energy consumed by a transaction on the Visa network, for instance, with a transaction on the bitcoin network, it is a “false equivalent”, she says. “A transaction on Visa needs the entire world banking system to be in place before its transaction can be processed, with all the physical infrastructure of banks, their buildings, people travelling between them, physical money being minted and transported, and so on. In contrast, bitcoin does all that inherently.”

An eco-friendly future? 

Pavel Matveev, founder and chief executive of Wirex, a crypto payment card, believes bitcoin’s energy consumption is the exception in the industry. “With more than 4,000 cryptocurrencies in existence, there are plenty of environmentally friendly options available, and many more on the way,” he says. 

For example, he points to nano, a eco-friendly cryptocurrency that doesn’t rely on mining, printing or minting and aims to address the current inabilities in today’s existing financial systems and limits fees while providing quick transaction speeds.

Given the introduction of less energy-intensive coins and a move towards renewable energy for mining, crypto could well become a more eco-friendly payment system in coming years, he suggests.

“Even the less eco-friendly cryptos can still be better for the environment than traditional currency,” says Matveev. “Imagine: goodbye plastic cards, paper receipts and pennies.

“Ultimately, not only does digital money offer many great advantages, but it’s a step towards a greener future overall.”

Perhaps Musk’s energy truth bomb was just what the industry needed to hear to clean up its act, even if, in the long term, the appeal of the original crypto is overtaken by more environmentally conscious alternatives. 

This article was first published in Raconteur’s Cryptocurrencies report in June 2021

Absolute beginners: startup tips for first-time founders

Starting a business is challenging enough even in normal times, but at least there is plenty of expert advice on offer for the UK’s new wave of novice entrepreneurs

Ironically, no one knows who invented the adage “necessity is the mother of invention”. This ancient proverb has rarely been more relevant in the business world, given the pandemic’s seismic impact on enterprises of all sizes.

The coronavirus crisis has caused widespread job losses and limited the career prospects of millions of people. This has led many to start their own enterprises. In the 12 months to March 2021, more than 810,000 businesses were incorporated in the UK, 22% up on the preceding year’s total, according to Companies House. In Q4 2020 alone, 221,000 companies were established – the highest quarterly figure in a decade. 

Britons have been running an entrepreneurial, startup culture for centuries – it’s what we do very well

Starting a business from scratch is no mean feat even when there isn’t a pandemic. Fortunately, several successful entrepreneurs, acknowledging the help they received when they started, are willing to share their insights with first-time founders. One such high-flyer is Markus Villig. 

As a secondary-school student in 2013, the Estonian had used a £4,300 loan from his parents and brother to start the business that would become pioneering transport company Bolt. Five years later, he became the youngest CEO of a European ‘unicorn’, a privately owned startup valued at $1bn. 

Give people what they need – even if they don’t know it yet

Villig’s original plan had been to provide a digital platform for cab users in his home city of Tallinn. The teenager hadn’t passed his driving test (he still doesn’t have a licence) and was frustrated by the capital’s disorganised taxi facilities. 

Today, Bolt is worth over £2bn and has 1.5 million drivers in 40 countries. But it wasn’t an immediate success, partly because Villig had trouble persuading people to adopt his pioneering technology. 

“There was a resistance from drivers to joining, as they didn’t understand how easy it was,” he recalls. “To combat this, I took to the streets myself, approaching drivers at taxi stands to pitch the idea and show them the simplicity of the technology and how it could benefit them.”

Villig stresses the importance of clear, concise communication in marketing, adding: “Don’t expect people to love your idea as much as you do from the get-go. I was faced with a tough market when I started Bolt, so I had to go out of my way to show that our common enemy was the private car. Once I began using this as my key message, we began getting taxi drivers on board.”

He continues: “It’s easy to overthink things. What I have found is that we humans like things to be simple. The simpler your business targets are, the better. At Bolt, we do our best to boil ours down to a few sentences.”

Start with a business plan to evaluate strengths and weaknesses

Erica Wolfe-Murray, the author of a guide for new entrepreneurs called Simple Tips, Smart Ideas, echoes Villig’s advice. 

“If you have a new idea for a product or service, don’t expect everyone to understand it automatically. They won’t,” she says. “If you’re thinking about launching a business, ask yourself: ‘Why now?’ If you can’t answer that, or your response is just flannel, rethink everything. I’ve seen so many startups that were little or no different from other companies. It saddens me, because they can take a huge amount of effort to launch yet will often fail quite quickly.”

Another common – and often fatal – error that new entrepreneurs commit is to make the pursuit of financial success their main reason for starting a business, Wolfe-Murray suggests. 

Don’t expect people to love your idea as much as you do from the get-go

“So many companies focus on their offering and the money before they focus on their unique experience, possible trends and different ways of approaching markets,” she says. “To start with, I always look at devising a business plan without involving money. The internal aspects of the company inform its strengths and weaknesses, while the external factors present opportunities and threats. This simple divide can often be overlooked, yet it is crucial to any business plan.”

Wolfe-Murray adds that the process of evaluating weaknesses and what outside help might be needed to address the latter requires a key entrepreneurial skill: resourcefulness. 

“Don’t underestimate the value of what and whom you know,” she explains. “You can analyse and harness these elements to launch an original, smart business in ways you may not have originally thought. Why copy others when your own assets give rise to a much richer offering?”

The financial hard yards – external help needed?

Wolfe-Murray warns that poor financial management is the “biggest pitfall” for new entrepreneurs. “It can take most companies up to three years before they get going, but that relies on regular customers and decent cash flow,” she says. “Yet founders take their eyes off the ball because there is so much else to do apart from looking after cash flow. I often ask founders who manages the money in their households. If it’s not them, they may not be used to doing the financial hard yards.”

Hannah Bernard, head of Barclays Business Banking, agrees. She would encourage any new entrepreneur to keep money from their business separate from the funds in their personal account. This will make it more straightforward to track the company’s cash flow and keep on top of supplier payments.

Ask yourself: ‘Why now?’ If you can’t answer this, or your response is just flannel, rethink everything

“This will help you to build up a business credit history, which could make it easier to access a loan – should you need it – as your venture starts growing,” she says, stressing the need to keep a scrupulous record of all revenues and expenses.

Bernard believes that most entrepreneurs will never be able to master every aspect of running a business, so they “should not be afraid to seek external help. A good place to start is online, where there are lots of free resources. The Barclays business hub, for instance, has tips on aspects ranging from writing a business plan to building a team.”

Wolfe-Murray offers a final word of encouragement to those pondering whether or not to start a new venture. “Britons have been running an entrepreneurial, startup culture for centuries – it’s what we do very well. Small companies are the bedrock of our economy. They enable inventive people to do things that intrigue and fulfil them,” she says. “If you have a hankering to start your own business, just do it.”

This article first appeared in Raconteur’s Supporting SMEs report, published in June 2021

Mastercard cyber chief on using AI in the fight against fraud

Ajay Bhalla, Mastercard’s president of cyber and intelligence solutions, thinks innovations like AI can tackle cybercrime – and help save the planet

The fight against fraud has always been a messy business, but it’s especially grisly in the digital age. To keep ahead of the cybercriminals, investment in technology – particularly artificial intelligence – is paramount, says Ajay Bhalla, president of cyber and intelligence solutions at Mastercard. 

Since the opening salvo of the coronavirus crisis, cybercriminals have launched increasingly sophisticated attacks across a multitude of channels, taking advantage of heightened emotions and poor online security.

Some £1.26 billion was lost to financial fraud in the UK in 2020, according to UK Finance, a trade association, while there was a 43% year-on-year explosion in internet banking fraud losses. The banking industry managed to stop some £1.6 billion of fraud over the course of the year, equivalent to £6.73 in every £10 of attempted fraud.

If you don’t test things to break them, you can be sure their vulnerabilities will be discovered down the line

The landscape has rapidly evolved over the past year, says Bhalla, due to factors like the rapid growth of online shopping and the emergence of digital solutions in the banking sector and beyond. These changes have broken down the barriers to innovation, driving an unprecedented pace of change in the way we pay, bank and shop, says the executive, who’s responsible for deploying innovative technology to ensure the safety and security of 90 billion transactions every year. 

“Against that backdrop, cybercrime is a $5.2 trillion annual problem that must be met head-on. Standing still will mean effectively going backwards, as fraudsters are increasingly persistent, agile and well-funded.”

AI: the new electricity

It isn’t just the growing number of transactions that attracts criminal attention, but the diversity of opportunity, according to London-based Bhalla, who has held various roles at Mastercard around the world since 1993. 

“As the Internet of Things becomes ever more pervasive, so the size of the attack surface grows,” he says, noting that there will be 50 billion connected devices by 2025. 

Against this backdrop, AI will be essential to tackle cyber threats. 

“AI is fundamental to our work in areas such as identity and ecommerce, and we think of it as the new electricity, powering our society and driving forward progress,” says the 55-year-old.

Mastercard has pioneered the use of AI in banking through its worldwide network of R&D labs and AI innovation centres, and its AI-powered solutions have saved more than $30bn being lost to fraud over the past two years. 

In 2020, it opened an Intelligence and Cyber Centre in Vancouver, aimed at accelerating innovation in AI and IoT. The company filed at least 40 AI-related patent applications last year; it has developed the biggest cyber risk assessment capability on the planet, according to Bhalla. 

“We are constantly testing, adapting and improving algorithms to solve real-world challenges.”

Turning to examples of the company’s work, Bhalla says Mastercard has built an ability to trace and alert on financial crime across its network, a world first. He also points to the recently launched Enhanced Contactless, or ECOS, which leverages state-of-the-art security and privacy technology to make contactless payments resistant to attacks from quantum computers, using next-generation algorithms and cryptography. 

“With ECOS, contactless payments still happen in less than half a second, but they are three million times harder to break.”

Building security through biometrics


Such innovations are transforming customers’ interactions with financial services providers. For example, Mastercard has combined AI-powered technologies with physical biometrics – like face, fingerprint and palm – to identify legitimate account holders. These technologies recognise behavioural traits, like the way in which customers hold their phone or how fast they type, actions that can’t be replicated by fraudsters. 

“We see a future where biometrics don’t just authenticate a payment; they are the payment, with consumers simply waving to pay.”

Excited by developments in this area, Bhalla says Mastercard recently detected an attack that involved hundreds of devices attempting to log in from a phone that had reported itself as lying flat on its back. “Given the speed at which the credentials were typed, we knew it was unlikely it could be done with the phone flat on a surface,” Bhalla says. “In this way, a sophisticated attack that looked otherwise legitimate was detected before any fraud losses could occur.”

Cybercrime is a $5.2 trillion annual problem that must be met head-on. Standing still will mean effectively going backwards, as fraudsters are increasingly persistent, agile and well-funded

Mastercard might boast an impressive list of successful fraud-fighting solutions, but wrong turns are vital for the journey, Bhalla admits. “If you don’t test things to break them, you can be sure their vulnerabilities will be discovered down the line,” he says. “At Mastercard, trust in and reliance on our services is far too important to take that risk, so rigorously testing solutions before they get anywhere near the end user is our standard operating procedure.”

Trust is a must

A keen rower and golfer, Bhalla volunteers as an executive-in-residence at the University of Oxford’s Saïd Business School. He has a bachelor’s degree in commerce from Delhi University and a master’s degree in management from the University of Mumbai. 

Even with his experience and tech knowledge, Bhalla insists that Mastercard and others within the industry must go back to basics and focus on customer experience. The company’s leadership in standards has been core to earning and retaining the trust of its customers, he notes. 

The technology may be evolving quickly, but one core principle remains, says Bhalla. “Our business is based on trust, which is hard-won and easily lost.”

The correct operating processes and standards must be in place from the outset so that both customers and businesses can have confidence in the technology and trust that it will be useful, safe and secure. 

“What has changed is the sharp focus now placed on developing leading-edge solutions that prevent fraud and manage its impact, which is not surprising given that the average cost of a single data breach has now grown to $3.86 million,” Bhalla says.

Providing a blueprint for business leaders, Bhalla strongly believes that “innovation must be good for people … and address their needs at the fundamental design stage of the systems and solutions we create.”

“We see a future where biometrics don’t just authenticate a payment; they are the payment, with consumers simply waving to pay

Bhalla is using tech to fight fraud and drive financial inclusion, with Mastercard aiming  to connect 1 billion people globally to the digital economy by 2025. His ambitions are wider still, with much of his work focused on “protecting the world we have”. 

Mindful that climate change is high on the agenda, especially for younger generations, Mastercard has launched a raft of programmes in the area, including this year’s Sustainable Card Badge, which looks to identify cards made more sustainably from recyclable, recycled, bio-sourced, chlorine-free, degradable or ocean plastics.

Much like fighting fraud, global warming is reaching a crucial stage. Thanks to the efforts of industry leaders like Bhalla, the world stands a better chance of ultimate triumph on both fronts.

This article was originally written for Raconteur’s Fighting Fraud report, published in June 2021