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MOBILISING BUSINESS

Chelsea Apps Factory

©2014 Chelsea Apps Factory Ltd. All rights reserved.

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1 Overview of CAFBACKGROUND AND PROPOSITIONS

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How we work

Helping the Telegraph grow

their Travel business.

Delivering the best mobile

sports book.

Helping change from a primarily

B2B pension provider to a B2C

company as regulations change

Innovation Lab

• Create great product and

service ideas from data &

insight

• Experimentation and

validation of ideas

• Joint / co-located teams

• Objective information to

support business cases

and product decisions

Proving Ground

• Test whether product and

service ideas work in

practice

• Experiments and validation

using end-to-end Proofs of

Concept

Mobilising Business

• Identify, prioritise, analyse, &

create an ongoing roadmap of

solutions which address business

goals

• Deliver a series of production-

ready products and services

• Continuous improvement

• Using licenced CAF apps and

accelerators as appropriate

Helping KPMG create and prove a

range of new offerings for SMEs

Improving the lead to cash process

within KPMG, e.g. improving

profitability of core business units

such as Audit

Delivering a series of apps to Waitrose

store managers and staff to improve

their productivity and customer

satisfaction

Helping the Met tech innovation

division prove how mobile can

solve key operational issues

Approximately 35% of CAF activity Approximately 65% of CAF activity

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• Year to date we’ve taken £581,002,460 in

total stakes placed, up from £280,351,897

last year.

• Previously Ladbrokes were considered

almost bottom of the premiership in terms

of digital sports betting.

• YoY Mobile Sportsbook growth was

improved from 24% to 112% excluding a

stellar performance during the World Cup.

• Our lab has acted as a catalyst for

change across the rest of the business to

think more scientifically and as such

we’re now going into the retail landscape

and applying our process and learnings.

We’ve achieved a four figure % ROI on

investment on CAFs services.

• Bringing retail into the mobile age

• Enabling staff to: Check stock levels,

product information, do timesheets,

check sales information

• Demonstrating clear ROI in

operational savings

• Building a more efficient retail

workspace

• Demonstrating to the industry and

staff a capability to leverage new

technology in an age old business.

• Objective: Transforming the

Telegraph culture to be faster

pace, more competitive, less

instinctive and more scientific

on its assessment of value on

activities undertaken by staff.

• We are currently focussing in

on the Travel business. Taking

a £20m revenue to a £40m in

just two years.

Innovation Lab Enterprise Mobilisation

The Results

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2 Case studiesTHREE CLIENT EXAMPLES

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• The scenario: Waitrose, have deployed 5,000 iPads into their branches to increase staff productivity and enable them to have more time on the shop floor with customers.

• Waitrose and CAF identified over 100 candidate applications

The solution – a Continuous Development Cell, giving Waitrose:

• A prioritised roadmap of achievable mobile solutions• An Agile delivery team making integrated, secure enterprise

applications, at pace, that connect to a complex back-end• The management of numerous versions of applications, their

updates, changes and the support of them.

Highlights and successes (so far…)

• 1 year into a 2 year roadmap of mobile applications• Multiple mobile applications delivered into stores• Increased visibility for branch managers on store performance• Staff efficiency increased, more time with customers on the

shop floor• Staff better informed about products, stock and demand• Innovation brought into the heart of each Waitrose branch’s

customer service activities

Client example and case study

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• The scenario-KPMG, with CAF, identified the opportunity to significantly increase productivity through mobile.

• Requirements needed to be gathered from a disparate business and analysed before delivering value.

The solution –A discovery and delivery phase to identify, prioritise, analyse and select the right applications for development.

• Gathered existing app ideas from across KPMG and identified new ones.

• An Agile delivery team making integrated , secure enterprise applications, at pace.

• A roadmap of apps, clustered around delivering value into KPMG

Highlights and successes (so far…)

• Increasing productivity by 1-2%

• Delivering a cost/benefit ratio of 10:1

• Increasing speed, accuracy, accessibility of information

• Increasing productivity, where today there is a labour intensive cost structure

• A timesheet programme delivering an RoI within 5 weeks

• Delivery of Job Management programme, saving potential £25m per anum

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CLIENT: KPMG

The Discovery Phase

Gathered existing app ideas from across KPMG, and identified new app ideas

• The challenge was to work with a diverse group of partners and pull out the best ideas

while keeping their engagement

Analysis – the Discovery Phase

• An analysis using CAF’s experience of mobilising business – to draw out the most

valuable apps, and set out a roadmap of how to gain the most benefits.

• The challenge - apps usually have to connect effectively with existing IT systems; a big

part of the discovery phase is identifying which app ideas are achievable and finding the

most effective solution for delivery.

Results

• A roadmap of to-be apps clustered around a key process to drive the most benefit.

• … this moved into Development in Spring 2014, and the first apps have been delivered

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MOBILISING KPMG WILL BRING AN ANNUAL BENEFIT OF BETWEEN £10 AND £20M

The business benefit of mobilisation

Mobilisation will have a significant impact on KPMG and its industry:

• Increasing productivity where today there is a

- labour-intensive cost structure

- high proportion of mobile / client-based staff

• Increasing speed, accuracy, accessibility of information products and processes

• Temporary advantage to leaders will translate into increased share of market

and enduring value

We think

• Mobilisation will increase productivity by (conservatively) 1-2%

• This is a cost/benefit ratio of 1:10

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THE BUSINESS BENEFITS FROM TIME SAVING

The value of a timesheet programme

Quick and easy way to enter and update timesheet info; ballpark cost to implement £270k

Scope of KPMG business impacted:

– £1.8bn UK revenues, excl cost of process, or impact of process errors or delays

Potential savings of an iOS-only* version estimated at approximately £50k/week

– 42% of staff x 7.5 mins/40-hour week = 42% x 0.33% x £1.8bn = £2.5m billable time

annually

– Reduced chasing, errors, underbilling and rework

– Opportunity for earlier billing = 0.27% of annual revenue per day brought forward

Value is 10 x cost

– Payback in 5-6 weeks on rough estimate of billable time only

– There is also the staff satisfaction of improving the unpleasant task of doing timesheets

* 42% of staff have an iPhone, the rest have mainly Android or Blackberry

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THE BUSINESS BENEFITS FROM PROCESS IMPROVEMENT

The value of a job management programme

Quick and easy means of managing job budgets, approval workflows and forecast information, and

seeing how actuals are coming in against forecast: ballpark cost to implement: £200k

Scope of KPMG business impacted:

– Audit business, extendable to other areas of KPMG

– Cost of running current process estimated > £2.5m annually

– Impact of process issues – principally budget overruns - estimated up to £25m annually

Expected impact:

– More effective engagement resourcing and cost / profit control

– Reduction in process admin cost and the wait for data

– Faster budget/forecast discrepancy identification and remediation

Value is 12.5 x cost

– Payback in less than 5 weeks

– User-centric process and design means the task is easier and better adoption is expected

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ITERATIVE DEVELOPMENT HELPS BY REDUCING THE RISKS OF MOVING QUICKLY

But the mobilisation opportunity is very speed-sensitive

Estimated benefits are typically a high multiple of costs (10-100x)

• A couple of months delay could be more than the entire development cost

Agile development approach reduces implementation risk - but can seem a greater ‘leap

of faith’ at the outset

Competitors are not standing still:

• Leaders will capture sales, increase margins, and improve productivity

• Laggards will see sales and margins fall

• High performing (especially younger) staff are tempted by more innovative tools

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The brief – to be “the best” mobile sports book in time for the world cup

• “the best” - whatever the customer truly values – and keeps them happy

The solution – to set up a self-contained business unit providing Ladbrokes with:

• An integrated customer and product discovery process –a data and lean experiment driven approach to determine features and services our customers truly value

• An agile product development function releasing new features over two week sprints

Highlights and successes (so far…)

• Generation of over 200 product and feature ideas categorised and prioritised

• A portfolio approach to the delivery roadmap allowing us to prioritise our effort to deliver features classed as “brilliant basics”, “progressive” and “breakthrough”

• Fail fast mentality allowing us to run 15+ experiments and rule 20+ ideas in and out

• Over 30 new product features live over 8 releases… (so far)

• Turnover targets exceeded by 35% and active customer targets exceeded by 68%

• Customer retention rate increased by 50% and new customer retention up by 80%

Client example and case study

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3 Overview of CAF processIDENTIFY, PRIORITISE, ANALYSE & PREPARE, DELIVER, ITERATE

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Overview – taking a range of candidate ideas through iterative development

Live AppsDevelopmentBuffer

Funnel

Buffer of apps where

Product Backlogs are

produced

Iterations for

existing apps

Received

App ideas

Prioritised app

ideas

Scheduled

app ideas

Delivery cells (one or more in parallel) – take

product backlogs and use to develop / test the app

Feedback,

analytics, user

requests and

iterative

improvements

New IdeasDriving new

business ideas

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At CAF we run our project using a SCRUM methodology; utilising a standard two week sprint cycle. Britvic and CAF meetings are the Product Backlog Grooming

and Sprint Review sessions. Open and responsive communication channels are required to deliver the most value possible from the end products.

Methodology

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4 Discussion