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HOME NEWS A VISION FOR FUTURE PUBLIC SERVICES FIRMS SERVING CONSUMERS NEED TWO CIOs CIOs SWAP NOTES ON SMEs WITH INNOVATIVE IT EDITOR’S COMMENT OPINION BUYER’S GUIDE TO THE INTERNET OF THINGS PROS AND CONS OF PUTTING WI-FI INTO RETAIL OUTLETS DOWNTIME Bright ideas for local government IT HOW VISIONARY IT LEADERS IN LOCAL GOVERNMENT ARE WORKING TOWARDS AN INTERCONNECTED NETWORK OF PUBLIC SERVICES 3-9 December 2013 | ComputerWeekly.com STOCKBYTE/THINKSTOCK

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Page 1: HOME for localdocs.media.bitpipe.com/io_11x/io_110094/item... · to crack encryption methods as “appalling and foolish”. Mobile apps & software Financial software developer launches

computerweekly.com 3-9 December 2013 1

HOME

NEWS

A VISION FOR FUTURE PUBLIC

SERVICES

FIRMS SERVING CONSUMERS

NEED TWO CIOs

CIOs SWAP NOTES ON SMEs WITH INNOVATIVE IT

EDITOR’S COMMENT

OPINION

BUYER’S GUIDE TO THE INTERNET

OF THINGS

PROS AND CONS OF PUTTING WI-FI INTO

RETAIL OUTLETS

DOWNTIME

Bright ideas for local

government ITHOW VISIONARY IT LEADERS IN

LOCAL GOVERNMENT ARE WORKING TOWARDS AN INTERCONNECTED NETWORK

OF PUBLIC SERVICES

3-9 December 2013 | ComputerWeekly.com

STO

CK

BYTE

/TH

INKS

TOC

K

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HOME

NEWS

A VISION FOR FUTURE PUBLIC

SERVICES

FIRMS SERVING CONSUMERS

NEED TWO CIOs

CIOs SWAP NOTES ON SMEs WITH INNOVATIVE IT

EDITOR’S COMMENT

OPINION

BUYER’S GUIDE TO THE INTERNET

OF THINGS

PROS AND CONS OF PUTTING WI-FI INTO

RETAIL OUTLETS

DOWNTIME

THE WEEK IN IT

PC hardwareHP shareholders receive dividend as yearly revenues decline by $8bnHP shareholders are set to receive an early Christmas present despite the com-pany making $8bn less in 2013 than in 2012. The supplier said it returned $763m to shareholders in dividends and share repurchases in the fourth quarter. For the company’s fiscal 2013 results, which ended on 31 October, HP made $112bn revenue compared with $120bn in 2012.

Datacentre hardwareTesco consolidates global datacentres into single UK-based shared serviceTesco is six months from completing a three-year programme to build a single datacentre operation for UK and interna-tional operations. Tomas Kadlec, Tesco’s group infrastructure IT director, spent the last year consolidating the European and Asian IT operations. In the last two years the retail giant has expanded its online business across eight countries.

Smartphone technologyBlackBerry bids farewell to COO and CMO as director resigns board postAnother two members of BlackBerry’s management team will leave the strug-gling mobile firm. Chief operating officer, Kristian Tear, and chief marketing officer, Frank Boulben, are leaving, their replace-ments yet to be announced. Roger Martin, a director at BlackBerry since 2007, has also resigned, with no explanation.

Hackers & cybercrime preventionRacing Post warns users of site hackThe Racing Post said its website was hit by a “sophisticated, sustained and aggres-sive” attack that compro-mised a database con-taining customer details, including usernames and encrypted passwords. The company has promised to adopt stringent measures to prevent a repeat of the security breach on its website, racingpost.com.

Internet infrastructureTim Berners-Lee warns UK and US surveillance threatens net democracyWeb inventor Tim Berners-Lee warned that the democratic nature of the internet is under threat from increased surveil-lance and censorship. An advocate of net neutrality, Berners-Lee strongly criticised internet surveillance by UK and US intel-ligence agencies, describing the decision to crack encryption methods as “appalling and foolish”.

Mobile apps & softwareFinancial software developer launches banking app for smartwatch deviceUK financial services software firm Intelligent Environments has launched a banking app for the smartwatch from Pebble. Users can check their current bal-ance and recent transactions, and use the app to set up warnings – such as a vibrat-ing alert – when their balance gets close to its overdraft limit.

SUBPOSTMASTERS FILE CLAIMS AGAINST HORIZON SYSTEMAbout 150 subpostmasters have filed claims to the investigation into the purportedly faulty Post Office accounting IT system used by thousands of subpostmasters.

The investigation into the Horizon account-ing system, conducted by forensic expert Second Sight, set a deadline for claims on 18 November. Subpostmasters have suffered heavy fines and even jail terms as a result of alleged false accounting, but many have consistently blamed the Horizon system.

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HOME

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A VISION FOR FUTURE PUBLIC

SERVICES

FIRMS SERVING CONSUMERS

NEED TWO CIOs

CIOs SWAP NOTES ON SMEs WITH INNOVATIVE IT

EDITOR’S COMMENT

OPINION

BUYER’S GUIDE TO THE INTERNET

OF THINGS

PROS AND CONS OF PUTTING WI-FI INTO

RETAIL OUTLETS

DOWNTIME

THE WEEK IN IT

access the latest it news via rss feed

Mobile apps & softwareJuniper Research predicts more than one billion BYOD users by 2018Employee-owned smartphones and tablets, used in bring your own device (BYOD) schemes, will increase to over one billion devices around the world by 2018, according to a study from Juniper Research. The predicted figure – which will account for 35% of all consumer mobile devices – will result from a trend to improve work-life balance, said Juniper.

OutsourcingISG study shows global public sector outsourcing outstrips private sectorPublic sector organisations around the world spent €7.4bn in the third quarter on IT outsourcing and business process out-sourcing (BPO), compared with €4.6bn in the private sector. The study from ISG revealed that the UK, the US and Australia spent the most on public sector out-sourcing. Globally the public sector now accounts for 56%.

Business applicationsSAP improves relations with user groupSAP has improved its relationship with the supplier’s UK and Ireland user group, according to user group chairman Philip Adams. He told delegates at its annual conference that collaboration with SAP stepped up in 2013. He said the area of licensing had been “fraught” in the past, but progress was made in simplification, transparency and flexibility over the year.

PC hardwareApple buys Kinect developer PrimeSenseAfter months of rumour, Apple has con-firmed the acquisition of Israeli motion-sensing firm PrimeSense, which developed the ges-ture control feature for Microsoft’s Kinect add-on for the Xbox 360. The second-generation Kinect hardware was developed in-house by Microsoft, making its official debut as part of the Xbox One launch.

ManufacturingJaguar Land Rover builds data-sharing infrastructure to improve developmentJaguar Landrover (JLR) has used a pro-posed data-sharing standard to improve car development in its product lifecycle management (PLM) system. The luxury carmaker has revamped its business sys-tems after Ford sold the company in 2008 for £1.15bn to Tata Motor. Following the acquisition, JLR needed to migrate from Ford’s IT and PLM systems.

Financial servicesBanks clamp down on traders’ chatBarclays, Citigroup and Royal Bank of Scotland have banned traders from using chat rooms in the wake of the Libor inter-bank lending rate scandal, as worldwide probes into price manipulation get under-way. According to the Financial Times, a senior banker close to RBS said: “The bank clamped down on this big time. I think we are even going slightly overboard.” n

ONLINE RETAIL CHRISTMAS 2013 SPENDING FORECAST

Source: IMRG and Capgemini

Week commencing 25 November 2013

20%

Week commencing 26 December 2013

Week commencing 9 December 2013

Week commencing 16 December 2013

Week commencing 2 December 2013

29%37%

10%4%

% of £10bn estimated online spending, by week:

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OF THINGS

PROS AND CONS OF PUTTING WI-FI INTO

RETAIL OUTLETS

DOWNTIME

ANALYSIS

Pioneering councils are moving to public cloud and aiming to realise the potential of government as a platform through standardised IT services. Bryan Glick reports

Interconnecting local government IT

How do you feel about the following as a vision for future public services?

On your way home from a night out you notice a streetlight is not working. You tweet the local council what you have seen and the road it is on, and the next day an engineer turns up to fix the light. Maybe your phone even transmits your GPS co-ordinates to the council to ensure it can locate the faulty light.

Or perhaps you have moved house and you need to change your council tax details. Instead of contacting your old local author-ity to inform it of your move, and then your new one too, you open the council services app on your smartphone or tablet, select “Update your home location”, and the device automatically informs both councils that you have moved house. And then that same app automatically receives updates on everything you need to know about the public services in your area.

Sound appealing? That’s the sort of future that some of the more visionary IT leaders in local government are working towards.

Innovative thinkingUnfairly perhaps, local authorities have rarely been perceived as a hotbed of IT innovation. But faced with budget cuts of 30% or more in the age of austerity, forward-thinking councils chose not to waste a good recession and saw those cuts as a catalyst for fundamental change.

One of the pioneers is the London Borough of Hounslow, whose IT chief and director of corporate resources, Anthony Kemp, hosted an event for his local authority peers last month to showcase the work he is leading and discuss the potential for “government as a platform”.

Hounslow is wholeheartedly embracing the cloud. “True public cloud; multi-tenanted, non-proprietary, available over the internet – not some supplier’s datacentre with a cloud label on it,” said Kemp.

By May next year, Kemp aims to have at least 30% of Hounslow’s key applica-tions running on the new platform being developed in partnership with cloud suppli-ers Salesforce.com, Box and Amazon Web Services. After that, the council plans to spend the next two years building out cloud-based replacements for other software. “In four years, we intend to be infrastructure-free, with no on-premises IT, and no legacy systems,” said Kemp.

The principles behind Hounslow’s plan have been developed in conjunction with consultancy Methods, whose strategy direc-tor Mark Thompson has been one of the architects behind the reforms of Whitehall IT that are being driven through by Government Digital Service (GDS) director Mike Bracken and government CTO Liam Maxwell.

Thompson’s vision involves moving away from IT organised around the typical local government silos such as housing, envi-

ronment and transport. Instead, common services such as case

management or payments are standardised as cloud-based components available as a ser-vice. Currently, many councils

use several systems for tasks as routine as payments because

each individual software supplier to each depart-ment has its own built-in payments functionality. In

the new world, only those functions that are unique to a par-ticular public service would be developed for use by that service – and even then, such

95% of local councils share services

Legacy IT preventing

councils from delivering

better digital services

THINKSTOCK

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available software or to host it in the cloud.The response from some delegates sug-

gested there is still a lack of understanding and confidence around the idea of making in-house software available as open source. Objections included a concern about who would update the applications to cater for new laws and government policies.

But under the government-as-a-platform vision, the reason for publishing as open source would be to develop a community that works together across many councils and suppliers to manage the software. That introduces a chicken-and-egg situation – without critical mass, such a community would struggle to come together.

Whitehall’s GDS is trying to set an example here – making the publishing platform devel-oped for the Gov.uk website available as open source for any other government anywhere in the world to adopt if they so choose.

One guest at the event suggested local government IT chiefs need to start focusing on what is the same about them, not what is different.

There is, without doubt, a new breed of local government IT leaders emerging. Some young and willing to question the status quo; others with private sector experience that are less influenced by public sector convention. But also established council CIOs who realise that old ways are rapidly losing relevance.

Government as a platform offers huge opportunities for local authorities, but it still presents many challenges for which solu-tions have yet to be adequately explained. One way or another, significant change is coming to local government IT.

As one guest at the Hounslow event put it: “If not this, then what?” n

software could be made freely available to other councils as open source.

Customised public servicesUltimately, the government-as-a-platform model lends itself to customisation of ser-vices around the citizen – delivering relevant services for each individual; in IT terms, packaged up as a series of components in a standardised enterprise architecture.

It is a hugely appealing vision, and one that guests at the Hounslow event received with enthusiasm. But, of course, it is never as easy as all that.

Moving commodity IT services such as email to the cloud is one thing, but functions such as revenues and benefits, housing and public transport are quite another. In many cases, councils can only choose from two or three suppliers which offer the special-ist software for such services – and those suppliers have no incentive to overhaul their applications to create a market that opens them up to greater competition and com-moditises their products.

It would require co-ordinated action by hundreds of the 433 local authorities in the UK to force such change on an unwilling market.

Thompson believes the initiative needs to come from the centre, at the Department for Communities and Local Government (DCLG). “It needs leadership from DCLG to push change in suppliers to force the creation of a market of commodity components,” he said. “That leadership is currently not there.”

Open source objectionsBut it is not just the suppliers that need to change – the culture and mindset of local government IT needs to adapt too.

One guest at the Hounslow event talked about how his council has developed its own software for a particular service, and is hoping to partner with a supplier to sell that software to other councils – a move that other local authorities have done with vary-ing degrees of success in the past.

Computer Weekly asked why it could not publish that application as open source, and instead of finding one supplier to sell it, find several smaller firms willing to offer services to help councils implement the now freely

Government as a platform offers huGe opportunities for local authorities, but it still presents many challenGes

ANALYSIS

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A VISION FOR FUTURE PUBLIC

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FIRMS SERVING CONSUMERS

NEED TWO CIOs

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OPINION

BUYER’S GUIDE TO THE INTERNET

OF THINGS

PROS AND CONS OF PUTTING WI-FI INTO

RETAIL OUTLETS

DOWNTIME

ANALYSIS

Karl Flinders finds your company does not need to be a bank to justify having more than one CIO, and multi-speed development is vital in the retail sector

Consumer-facing firms need two CIOs to keep up with competition

Businesses selling goods and services to consumers need at least two CIOs and multi-speed IT departments if they are

to match the competition.Long-established businesses based on

traditional bricks and mortar customer service will need more than one IT leader when they move to multi-channel models.

You do not need to be a huge bank these days to justify more than one CIO. In sectors such as retail, where digitisation is transforming how businesses interact and serve customers, the person who drives customer-facing developments would struggle to manage the traditional corporate IT infrastructure at the same time.

Travel company Thomas Cook is a good example. Its business is being transformed by online consumer habits. As a result of the explosion in the number of consumers

who research and buy holidays online, the company has had to turn IT into an agile software development house, which can quickly develop and launch online services. These services are being developed in reaction to what customers are asking for and can translate directly into sales. If Thomas Cook doesn’t do it a competitor will, so speed is of the essence.

Mariano Albera, CIO at Thomas Cook, is one of two CIOs at the company. He concentrates on the customer-facing IT while a colleague is the CIO in charge of the traditional IT infrastructure.

Albera said he is a software developer at heart and has always worked in the travel industry, mostly for online-only companies, and used agile software development techniques to get apps up and running quickly. Working for a large legacy supplier

CIOs and CMOs are failing to

collaborate

The Deloitte CIO

Survey 2013

THIN

KSTO

CK

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OF THINGS

PROS AND CONS OF PUTTING WI-FI INTO

RETAIL OUTLETS

DOWNTIME

as financial reconciliation, supply chain, and customer data systems.” These are the slower developments that IT does.

IT developmentsBanks are also changing how they work in IT. Like in retail banking, customers are demanding online and mobile services. Barclays is a good example of a conservative organisation publishing apps and updates at a rapid rate. The bank’s Pingit app is a case in point. It has transformed in a short time since its launch in February 2012, from a system to allow consumers to pay each other using a mobile phone to one being used by merchants as an online checkout or to link to customers’ mobiles via adverts featuring Quick Response (QR) codes.

IT developments are being driven by consumers. The bank recently outlined the success of its Wi-Fi roll-out in its branches nationwide and revealed that it is about to embark on a project to introduce multifunction touchscreen devices, with the capabilities of the behind-counter systems, to serve customers in branches.

Speaking to Computer Weekly earlier this year, Barnaby Davis, managing director of UK branches at Barclays, said the business justification is the need to ensure the bank is seen by consumers as digitally advanced. “We did not have a traditional business case, but we had a strategic intent to demonstrate our digital credentials,” he said. n

such as Thomas Cook is different and it would be impossible for one CIO to do the front-end development and the back-end IT infrastructure at the same time.

Albera said plans can change quickly in online retail: “The customer is your steering committee not a group of senior executives.” To this end the CIO responsible for the customer-facing technology must be plugged in to what customers are saying and be ready to react to it.

With IT maintenance taking up to 80% of the budget, the CIO responsible for the IT infrastructure is also fully utilised.

Sarah Venning, head of IT relationships at John Lewis, said the changing demand from consumers is also forcing large retailers to have IT departments that can work at multiple speeds.

There are the developments that have to be perfect first time that take time, such as major IT infrastructure upgrades, and then there is the fast development of customer-facing apps that has to be at least as quick as the competition. The final speed is superfast and is around innovation when the IT department crowdsources or runs hackathons.

She said the IT department must be able to develop customer-facing systems quickly using agile development techniques, and ensure the IT underpinning these systems receives the necessary investment. “We have put a lot of effort in agile software development and delivery. But we also need to continue to invest in major systems of record underpinning core business, such

“the chanGinG demand from consumers is forcinG larGe retailers to have it departments that can work at multiple speeds”sarah venninG, John lewis

ANALYSIS

Barclays is a conservative organisation that has published new apps, such as Pingit, at a rapid rate

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DOWNTIME

INTERVIEW

McKinsey CIO Mike Wright turns to smaller firms for specialist technology and supports meetings for IT leaders to share their ideas. Caroline Baldwin reports

Search for innovative technologies leads CIOs to swap notes on SMEs

Ever more CIOs are finding it difficult to find innovative technology from the large established suppliers and have

to search elsewhere. Mike Wright recently became CIO at McKinsey & Company and says he is looking to smaller companies to fill the void. “Most innovation is happening in the smaller organisations with specialist capabilities,” he says.

Wright says he finds smaller firms, who have a good track record with other organi-sations, a safer bet for finding innovation.

He likes to work with small companies because they have more specialist knowl-edge about particular technologies, and he can get answers fast. He finds he can meet the technologists quickly because startups are less likely to be tied up in lengthy process and bureaucracy. The people he meets work at a technical operational level, rather than in administrative roles.

“It’s much harder to have a debate with a larger company’s technologist,” he says. “They need to ensure they are sensible, and don’t say anything inappropriate. That is good in some ways, but I don’t think it’s how you find real expertise.”

Wright took the role at McKinsey and Company after six years as global head of technology at Man Group. Following a 16-year career as a CIO, he has learnt innova-tion needs to be at the forefront of his mind.

Wright: “There are good big firms, and there are crap small companies. But it’s hard to find great small firms”

Technology Strategy

Board announces

£30m funding for SMEs

Cisco: Big businesses stay

fresh buying innovative

SMEs

CW500 interview

Clustering CIOs and startupsOne of the ways Wright has looked for innovation in previous roles is through a company called Clustre, which uses word-of-mouth referral.

While McKinsey & Company has no relationship with Clustre, Wright has used the company in the past to search for new suppliers to work with. He says the company has “a good pipeline of interesting compa-nies doing genuine innovation”, which come recommended from other CIOs.

“There are good big companies, and there are crap small firms,” says Wright. “But, as a CIO, it is hard to find great small companies.”

“it’s much harder to have a debate with a larGer company’s technoloGist”

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One of the technologies he has come across is the Z-pen (pictured below), which converts handwriting into digital text. “That’s a small organisation that I’m not sure I’d come across normally,” he says.

Wright uses analyst firms to keep on top of innovative technologies. Organisations such as Gartner are helpful at streaming relevant information. “But Gartner and Clustre are at two ends of the spectrum,” he says.

While Gartner analyses, grades and researches technology, Clustre connects CIOs with similar problems together who discuss which companies they have found helpful in identifying solutions.

“Neither are right nor wrong,” says Wright. “And in a CIO role you must keep as many options and avenues that lead to potential innovation as open as you can.”

The search for ‘megatrends’Wright is currently on the lookout for tech-nologies to suit the bring your own device (BYOD) trend, which will let employees do their jobs as effectively on the road as in the office. “My job is to use technologies to help them do their day job,” he says.

He says “megatrends” – such as big data – will change the way organisations connect with customers as individuals: “Companies can now remember who you are,” he says. “Big data can help them understand the whole picture of that particular customer and allow you to bring a richer dialogue.”

He also thinks the cloud will fundamen-tally change the economics of IT: “There are

things you can do in the cloud at a fraction of the startup costs

you can do in-house.” n

Wright says you can easily find the decent large companies with innovative solutions, because they come and find you, using their marketing budgets: “My assistant spends a fair chunk of the day fighting those people off,” he says. But the smaller companies, with much less money to spend on marketing and brand awareness, do not get a look in.

Clustre co-ordinates forums with CIOs who are implementing technologies. They speak at breakfasts and other networking meet-ings without suppliers present, sharing ideas among peers, much like Computer Weekly’s CW500 Club. The ideas and companies Wright hears about at these events are not exclusively small companies, but this is one area where startups are recommended to him. “You can go along and meet people and find some of those people will have similar challenges to you,” Wright says.

“in a cio role you must keep as many options and avenues that lead to potential innovation as open as you can”

INTERVIEW

The Z-pen: Wright says he probably would not have discovered it without the

forums Clustre runs for CIOs seeking novel technologies

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EDITOR’S COMMENT

Technology job cut fears ill-founded with digital skills shortage

There is an emerging sense of fear around the effect the digital revolution will have on jobs, with warnings of an employment catastrophe as tech-

nology automates more processes and functions.With customer self-service through web and mobile,

you need fewer callcentre workers. With mass IT auto-mation through the cloud, wave goodbye to datacentre staff. And as public services go “digital by default”, so thousands of civil servants are made redundant.

Or so the story goes. Technology has always brought the fear of job cuts. For the past 30 years, every new technology trend has brought similar warnings – but the jobs apocalypse has never happened.

Of course, say the doomsayers, that is because we are only now really entering the stage where technology is truly transforming the way we live and work. On this point, they may have a case.

But this is not a jobs issue – it is a training issue.Look at shipbuilding. It has been in the news because

BAE Systems decided to shut its Portsmouth dockyard. Trade unions have implored the government to step in. But what is the point of saving a 19th century industry when we can retrain those workers with skills for the digital age?

A survey by the Cloud Industry Forum suggests only one in 10 firms that adopt cloud computing reduce the size of their IT team. Most redeploy staff on revenue-generating projects. That’s the way to do it.

The government is right to not prop up ailing indus-tries – but wrong to leave affected workers to an uncer-tain fate. We need focus on training and, with a growing shortage in digital skills, there is plenty of demand.

A new approach is needed to enable cross-industry communication on skills needs, so workers affected by new technologies can be matched with shortages else-where, and a framework established for training them.

In a massively connected digital world, we need new relationships between employers, unions, workers and government that put training and skills development at the heart of the industrial transition that will radically change technologically enabled nations such as ours. n

Bryan GlickEditor in chief

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Let’s establish a national procurement framework for local government that has the size and critical mass to entice new entrants including SMEs.

We need to change supplier behaviour by approaching the performance problem differently. Instead of focusing primarily on evaluating suppliers on their functional points for the software or achievement of service-level agreement targets, let’s test supplier commitment to provide useable application programming interfaces (APIs). We should also test their willingness and technical capacity to integrate with other systems outside their commercial ecosystem, and have the courage to allow users to provide and publish ratings about their performance in the public domain.

And let’s accelerate innovation in the public sector by ensuring developments at one local authority are surfaced at an early stage to other councils using the product, so development costs can be shared early and innovation accelerated.

These changes cannot be driven alone. This is why the strategy on IT Category Management is a national one being led by local authorities in partnership with the Government Procurement Service and Local Government Association.

I hope we can change this medieval market because our citizens and businesses deserve it and it can only make our own suppliers more competitive in a global marketplace. n

OPINION

John Jackson highlights the problems local government faces in delivering public services efficiently, and how a successful digital strategy can be formed

Local governments use software that is more medieval than 21st century

T he financial challenges facing local government have never been greater and we need innovative new ways of

delivering public services to meet them.Digital strategy has a key role to play

in enabling local authorities to integrate services through sharing information.

But here’s the problem. Nearly all government CIOs hit a wall when it comes to making the transformational step-change that our citizens and businesses deserve and expect through software.

What holds local government back?While consumers have fantastic choice, we in local government are faced with a software and applications market that is more medieval than 21st century. This is because:n The landscape is dominated by a small number of suppliers delivering one-size-fits-all “enterprise” solutions, often coupled with eye-watering fees.n Many local government applications have their roots in mainframes as opposed to online stores, and have clunky workflow and poorly designed user experiences.n IT leaders do not have ready access to a ratings system for local government suppliers.n Much of what we have to work with is proprietary and expensive to integrate.

You get the idea. To be fair, it’s not all bad. We have some exciting new entrants in markets such as social care and some suppliers can smell the coffee and are showing more flexibility and willingness to listen than before.

How the system can changeBut we will never get the level of change we need, in an acceptable timetable, unless we disrupt the market. I’m passionate about achieving that in several ways.

Camden Council goes

BYOD with Accellion

Is this the future

for local government IT?

John Jackson is CIO at London Borough of Camden.

This is an edited excerpt. Click here to read the full article online.

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Internet-connected devices have been predicted to become popular for many years, but the emergence of the internet of things (IoT) has been held back by many issues – the main one being cost. Making a fridge or other device internet-aware adds significant costs to what is essentially a commodity, low-cost item. And there are issues around

how devices would connect to the internet in the first place – in many business cases, existing systems, such as production line equipment, were already running on proprietary networks, and within the consumer environment there were competing standards, such as X10 and HomePNA. Wireless technologies also operate on a mix of spectrums, with the 2.4-2.5GHz band being used heavily by several non-compatible standards for data transfer and various remote controls.

Utility companies have long wanted to use the power connections into people’s homes to remotely read their meters. As governments have pushed the need for energy management to lower carbon dioxide emissions, utility companies have also been looking at how they can evolve this into a “smart grid”, where actions can be taken to control certain devices within a property depending on electricity availability or government rules.

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Internet of things to

power classroom education

APIs key to security of internet of

things, says Axway

Internet of things will drive forward lifestyle innovationsInternet-connected devices could make life easier for consumers and firms alike, but there are also challenges to overcome. Clive Longbottom reports

BUYER’S GUIDEThe internet of things part 1 of 3

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The likes of Google with its Google Glass requires the IoT to be more of a reality. Interactions with the world at a technical level in real time will require many more items to be connected to the internet so such wearable technology can understand what is there. There has been a strong move towards a standardised TCP/IP transport mechanism, which has started to erode the technology challenges to a real IoT. Modern PowerLine internet from the likes of Devolo and Solwise can provide networks of up to 500Mbps. Wireless standards are increasing bandwidth regularly, with 802.11n access points from suppliers such as TP-Link and Netgear capable of running at 600Mbps. And new standards, such as 802.11ad, designed to carry up to 7Gbps, are on the horizon. 4G mobile wireless using Long-term Evolution (LTE) is already being introduced by EE in the UK at speeds of up to 300Mbps.

Silicon chips for basic controllers are becoming cheaper, and a device can now be made “internet-aware” for only a few dollars. The capability to switch items on and off or to get them to follow simple commands is now an effective concept. Technologies such as near-field communication (NFC) can be used to transfer small amounts of information, with radio frequency identification (RFID) being a cheap means of enabling items that may need to report data but not receive any.

This convergence, down to a standardised TCP/IP protocol with higher bandwidths available and lower costs across multiple communications, points towards the IoT becoming more mainstream in a short period of time. However, many problems remain that must be dealt with before the IoT can deliver on its promise.

Getting your home onlineLet’s take the case of the internet-enabled home. The utility company wants to take control of certain items, such as the freezer. It can save energy here by turning the freezer off for periods of time, as long as it knows the temperature within the freezer, and turns it back on again before the temperature rises too far. You might like to control the cooker and other devices via the internet, so when you are on your way home, a nice meal will be ready as you walk through the door to a house at just the right temperature, with music playing in a room lit at an ambience to suit your mood. The TV company wants to monitor what you watch, so it can deliver highly targeted advertising to you in a mutually agreed manner. Your local supermarket wants to monitor your fridge and freezer to see what has been taken out and not returned so it can build up a shopping list for you.

There are some feasibility aspects to consider though. First, should each party connect through a different medium? If we want to ensure the connected property operates across

You could soon come home to a cooked meal after controlling your oven via the internet

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a range of interested parties, it is important that everything works together. Therefore, a single means of connectivity will be required, which for most will be an existing broadband connection. No need for utility PowerLine connections or other semi-proprietary systems. Just use a single connection to the home. Increasingly, homeowners may want a level of redundancy and so have more than one load-balanced and redundant connection, but essentially, all communication to do with the IoT should be across a single point of control.

Controlling devicesSecond, let’s look at what could be connected: heating, kitchen and laundry equipment, entertainment systems, and other mainstream connected devices.

Many of these will require constant monitoring. For example, in the case of the freezer the utility company has just turned off to save energy. It may seem sensible to check every half an hour to see if the freezer needs turning on again, but what happens if the house owner opens the fridge door and leaves it open for a few minutes?

Many IoT devices are capable of large amounts of low-level data “chatter”. Each item of data may be small, but the quantity of them will make for a large amount of noise. For a utility company monitoring several million households, the bandwidth required to carry this out will be high. Therefore, something needs to be done to control this chatter.

An intelligent property should be able to minimise the chatter. Imagine a property where all the devices are automated through simple internet enablement. Rather than have each of these act in isolation, a meshed network of a more intelligent set of controllers – such as a network of Raspberry Pi microcomputers – could deal with the chatter. For example, as long as the freezer is within its temperature bounds, the utility company does not need to know about it. The Pi network can filter unwanted data close to its source. Layering over suitable data analytics, from the likes of Acunu or Splunk, could add further value in being able to monitor trends and carry out pattern matching for activities where actions should be taken.

An intelligent internal network can also lower the amount of external data required to be pushed into a property for actions to be taken. Again, taking the previous example of someone returning from work and wanting a set of actions to be taken by several devices, rather than sending a command to each device separately, a command can be sent to the network saying something like “initiate environment A”. The internal network will understand this, parse it down to a set of commands and make each one happen. What could have been 20 different commands across the public internet has been brought down to one command.

Commercial useThe same approach can be used in business, with single commands being passed along value chains and kicking off complex activities within specific networks. Communities can work in the same way – centralised receiver systems

could accept single requests from citizens and split them into more complex sets of events. For example, a council house tenant may complain that their water is too hot, yet the house is too cold. The council can send out a single command that turns down the temperature of the water while increasing the thermostat temperature in specific rooms.

The key is to control how the IoT talks at a meaningful level. No matter how small the packets of data being sent out and received by an individual item are, if these are across billions of items, the aggregate data will bring the internet to a standstill. Through the use of localised intelligence, IoT chatter can be minimised. n

for a utility company monitorinG several million households, the overall bandwidth required will be hiGh

› Smart Grid and the internet of things› Gartner: IoT will be worth trillions

› Explained: What is the internet of things?

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Agrowing trend in retail stores is the provision of free Wi-Fi for customers. As more people use mobile devices, retailers are strategically placed to offer their custom-ers free connectivity. It was a trend that began in coffee shops and the hospitality industry, but retailers are also debating the benefits of offering Wi-Fi.

Argos has installed the technology in its 735 stores across the UK. The retailer started its journey to become a digital retailer with the launch of six digital concept stores, using iPads, before Christmas. It plans to roll out tablet technology across other stores later, to replace the traditional catalogue format. Its Old Street store in London (pictured above) is one of the pioneering digital stores. During a press preview in November, it was using around 40 tablets to help customers choose items in-store. The devices run off Wi-Fi provided by O2.

Young’s signs Wi-Fi

deal with BT

Coast, Oasis and

Warehouse drive retail

with iPads and Wi-Fi

The pros and cons of putting Wi-Fi into high street storesAs the high street fights the tide of online shopping, retailers have adopted the ‘digital store’ model – but there are drawbacks for some, says Caroline Baldwin

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O2 customers who have already signed up to the operator’s Wi-Fi service will automati-cally connect when entering an Argos store, but new customers will have to go through the sign-up process first. Once connected, users will be able to view extended online ranges and get access to exclusive online deals and offers, as well as using the network for their usual browsing activities.

Paul Crutchley, strategic engagement director at the GSM Association, says it is important for retailers to invest in Wi-Fi correctly, otherwise it will turn off customers. For example, if a store puts a limit on downloads – such as restricting streaming of YouTube – this could irritate customers and drive them away.

“In the long term, is that the right thing to do with the advent of 4G and LTE? I feel you’ve got to be compatible across multiple networks and Wi-Fi is one of the enablers,” he says.

Wi-Fi is not installed by retailers to provide a free service for their customers. It is about understanding consumer behaviour in store, but retailers can capture important data about their consumers in exchange for free Wi-Fi connectivity.

Customers accept the terms and conditions of using the network, which allows the retailer to track where you are in the store. “You’ll be walking around a store and picking up objects that you might not buy and there’s analysis around the store to say: ‘John looked that item up but didn’t put it in his basket, but he did put this in his basket.’ What retailers actually want to do is better understand their customers,” he says.

In-store Wi-Fi a double-edged swordRob Bamforth, principal analyst at Quocirca, says Wi-Fi for customers can be used as an extension of the traditional loyalty card: “Most people think loyalty cards are a mechanism for points, but actually it’s a mechanism for gathering data about the customer.”

With Wi-Fi, more contextual information can be gathered, such as how they move through the store, but Bamforth says there are also reasons why retailers would not want to put connectivity in store.

“One thing you can do with connectivity is shop around other retailers without moving,” he says. Greater connectivity provided by in-store Wi-Fi may increase the chance of customers comparing prices with competitors online.

MOBILE WALLET INNOVATION CAN BOOST SPENDING

Paul Crutchley, strategic engagement director at the GSM association, works with retailers to improve their mobile offering. He says barcodes, QR codes, near-field communications, mobile web and big data over the mobile device can all help drive customers back into the store.

Crutchley advises retailers implementing loyalty schemes not to bother investing in their own mobile applications, but to use one of the wallet schemes already available.

“Don’t create your own standards, use the standards that are already there and the knowledge that is already there, to support a faster way to work,” he says. “Allow innovation, but at least let the framework be as standard as possible, for a consistent customer journey, no matter the retailer or network.”

“It’s embracing multiple technologies at the right moment to allow the consumer to do some-thing simple as part of their normal, day-to-day life.”

He says it is not always down to the individual retailer’s technology, but the services that wrap around the community of the high street, that make the difference. “What keeps me in town that little bit longer and takes me into the evening?” he asks.

Parking is one example of drawing technologies together. If, for instance, a customer’s parking is about to run out, they could receive a text message with an option to reply and add another hour or two to let them go to a restaurant, spending more money in the town. “It takes it one step further with an holistic town and retail perspective,” says Crutchley.

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Bamforth says this threat is preventing the wide-scale adoption of free in-store Wi-Fi as retailers attempt to weigh up the values for and against. “It could be a double-edged sword from a retail perspective, so it might be better not to do that,” he says.

Dom Keen is chief executive at MoPowered, which helps retail businesses trade on smart-phones and tablets. He says there is a growing trend where, over the next 12-18 months, retailers will begin putting Wi-Fi in store. He says he is receiving increased interest from retailers putting Wi-Fi in their shops to complement in-store tablet applications for consum-ers to research products.

Keen says the proliferation of mobile internet means consumers will compare prices whether a retailer has Wi-Fi or not. “But if you make the in-store shopping experience the best it can be and provide what the customer needs, the chances are people in the store will buy in the store,” he says.

Motorola Solutions has been working with supermarkets to implement in-store Wi-Fi networks that recognise the smartphones of returning customers. When the technology recognises customers’ devices, it can also identify previous purchases. Combined with Wi-Fi tracking capability, the retailer can tailor individual offers to cus-tomers, depending on where they are and what they have bought in the past. For instance, a customer who has bought a barbecue set could receive a special offer while walking through the meat section of the store.

But some stores see a big cost barrier. Poundland does not provide Wi-Fi to customers in-store. IT director Mike Grays says that, for Poundland in particular, there is a high degree of product churn, and individual products are not allocated to a particular area. This means the data that can be taken from customers walking around the store can not be analysed in the same way as other stores with less churn.

“Offering customers Wi-Fi would mean a whole load of investment – it’s an area we’re looking at, but not for today,” says Gray. “And the data opportunities are fewer for us.”

Devices and Wi-Fi for staff useSome retailers are investing in installing Wi-Fi for store use, before considering the ben-efits of offering it to consumers. Clothing retailer Aurora Fashions – whose outlets include Coast, Oasis and Warehouse – has experimented with in-store iPads and Wi-Fi to improve customer experience and improve costs. The company has deployed 150 iPads and Wi-Fi to

60 stores for the sole use of staff.Richard Glanville, the CFO in charge of IT and distribution

at Aurora Fashions, says iPads are much cheaper than a full PC-based till system: “It allows you to interact with the customer, particularly at the fitting room. They huddle

around the iPad and talk to the customer about what they’re buying and what they’re doing with it,” he says.

Glanville says the retailer had to justify the cost of the Wi-Fi system. Aurora tried eight stores initially, but continued to roll it out to the 60 stores with iPad devices. “I’d be very surprised if all stores and concessions weren’t fitted with Wi-Fi in 12 months,” he says.

The industry may remain undecided but, as more retailers, cafes, restaurants and public spaces introduce Wi-Fi, the more the consumer will expect it as standard. Retailers who do not supply the connectivity risk standing out for the wrong reasons. But equally, retailers who do roll out Wi-Fi must use data mining analytics if they want to fully exploit the benefits of capturing consumer data. n

› Photo story: Argos – a digital retailer› High street retailers use multi-channel IT

› Fashion Retail Academy boosts Wi-Fi

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to pay the bill himself due to his family financial commitments.

It is likely the bill will have to be paid by ratepayers unless Yarwood can convince his mobile service provider to waive the roaming charges.

Yarwood admits he is “embarrassed” and “very sorry” about what happened, but says any suggestions that he should pay the bill himself or that he is anything but frugal are “unfair”.

Downtime feels Yarwood should grow up, shut up and pay up – like anyone else who made a similar faux pas would have to do. n

‘Tech-savvy’ Aussie official caught out by huge mobile phone billAdelaide Lord Mayor Stephen Yarwood claims he is tech-savvy, but forgot to turn off international data roaming on his mobile phone during a business trip to Taiwan. He subsequently incurred an internet bill of £11,600.

Such stories are common, but usually those running up the bills are children who have managed to gain unfettered access to their parents’ mobile devices, not “tech-savvy” city officials.

Despite earning £74,500 a year, Yarwood is claiming he cannot afford

DRINKING IS BAD FOR YOUR BUSINESS DATA

If anyone needed confirmation that over-indulging in alcohol is a bad idea, IT security firm Trend Micro has published a study that shows more than half of Britons have lost a mobile phone while out drinking. In what possibly qualifies as a pointless survey of more than 2,500 UK citizens, 52% of respondents admitted to losing a mobile phone containing sensitive work data while out drinking.

More than a fifth of respondents have had devices lost or stolen in a bar, 11% in a café and 8% in a restaurant.

The report highlighted a number of ‘security black spots’ where device loss and theft are increasingly com-mon. Some 26% said their mobile had been lost or stolen on the London Underground.

Mobile devices are also commonly lost on the way to and from work, with 44% of commuters saying they lost a device on the way home and 22% on the way to work.

Most of the losses and thefts took place at night, with 18% losing a mobile between the hours of 11pm and 6am, and a further 14% losing their mobile between 7.30pm and 11pm.

Read more on the

Downtime blog

A lost phone will give you a bigger headache

than any amount of alcohol you consume

during the party season

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