Tag Archives: Private Sector

The ‘Netflix of transportation’ – could MaaS be the future of urban mobility?

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Congestion, air pollution, inadequate public transport services – these are just some of the issues cities around the world are having to try and mitigate.  Could Mobility as a Service (MaaS) be the solution?

A recent webinar presented on Intelligent Transport looked at the different approaches currently being proposed, discussing the various benefits they offer and the challenges they face.

What is MaaS?

Although MaaS is enabled by technology, it was made clear from the get go that it is fundamentally about the user perspective.

Keynote speaker, Jonathan Donavan, CPO of Masabi, highlighted one definition provided by University College London’s MaaS Lab:

“Mobility as a Service (MaaS) is a user-centric, intelligent mobility management and distribution system, in which an integrator brings together offerings of multiple mobility service providers, and provides end-users access to them through a digital interface, allowing them to seamlessly plan and pay for mobility.”

Essentially, MaaS aims to provide the convenience of a private vehicle without the need for ownership, making users’ lives easier.

From the user perspective, it has to make it easier to plan and pay for travel, match the right mode of transport for the journey, be cost-effective and provide complete journey coverage. From a city perspective, it has to move people away from private cars, keep the city moving, provide equitable service to riders and optimise transport resources.

Real world examples

In an attempt to address these needs, a number of pilots have emerged. These include: the Whim app in Finland, which has now expanded to projects in the UK and Europe; Transport for Greater Manchester; UbiGo in Gothenburg, which has expanded to Stockholm; and NaviGoGo, Scotland’s first MaaS web application, similar to UbiGo, which was piloted in Dundee – to name but a few.

Other examples of MaaS in practice, include: Uber, which is expanding its market by bringing different forms of transport onto the platform; Citymapper, a journey planning app bringing in different ways of paying for and commissioning your own travel; Transit App, a navigational app based in Montreal, Canada; and Kisio’s PlanBookTicket, a mobile ticketing solution.

Stephen Miller, the Communications Lead at Transit outlined the work they are doing. Transit provides navigational services getting people from A-B without their own car, shows nearby transport and other mode options, and can track buses and trains approaching in real time. It also includes bike share, car share, your own bike, walking and now scooters, showing how multiple modes can integrate. It is the number three navigation app in the US and Canada, after Google Maps and Waze.

With PlanBookTicket, Kisio has moved towards a one platform MaaS, as described by their Chief Product Officer, Laurent Leca. It covers the data platform, trip planner, booking and ticketing, and analytics. Providing a seamless user experience, it offers a full ticket range which can be purchased with or without an account and it enables flexible integration with the existing infrastructure, making it affordable for medium-sized cities.

These real world examples show that MaaS is about enabling a simple and combined experience. Such initiatives are a good example of how the public and private sector are working together by combining various transport options. Nevertheless, there are still issues that need to be addressed for MaaS to be a true success.

Subscription or account based MaaS

MaaS has been referred to as the ‘Netflix of transportation’. However, a digital platform is very different to providing physical services and there are a lot of different services available for providing transport. In consideration of what might be the best model for MaaS, two were discussed: subscription based and account based.

Subscription based benefits:

  • Commitment to package means usage of car may be reduced, therefore shifting behaviour
  • Potential to support initial pilots
  • Under-utilised subscriptions may have roll-over model to ensure passengers don’t miss out

However, various issues were also highlighted. For example, subscription based models could favour those who can afford to pre-pay for their transport; there are potential barriers in relation to which package is most suitable and the geography of services; and there are national constraints of supply and demand.

It was also noted that the subscription demographic is a very niche one that is already well served by a mix of mobility options, but it doesn’t cover everybody. It was therefore argued that there is a need to look at different options to make it more universal.

Unlike Netflix, there is finite capacity within the transportation system and a lot of transport systems are physically constrained by something.

It was therefore suggested that perhaps more of an ‘Amazon for transportation model’ is more appropriate, where users can pay as they go for the services they need when they need them. This paves the way for an account based model.

Account based benefits:

  • Puts the city at the centre of MaaS
  • Customer does not need to pre-select their package – lower barrier to entry, more flexibility for customer and city
  • Greater equity – pay for travel once consumed
  • Greater ability to link together transit, tolling, parking and other mobility solutions

It was suggested that this provides a much more holistic option.

Future of public transit

With the success of numerous pilots across the globe, and with 85% of transport professionals in the UK who responded to the Landor Links 2018 annual survey of Mobility as a Service perceiving MaaS as an opportunity and something that would improve matters, both socially and environmentally, MaaS may well be the future of urban mobility.

Perhaps one concern, as highlighted by the author of the survey, Beate Kubitz, is resistance among public transport operators, the very people that are expected to provide the services. They only made up 4% of responses to the survey. The reason cited was because they are concerned about the costs and don’t see the business case. The automotive industry on the other hand is moving towards cooperation and collaboration with MaaS. Clearly more work is needed to increase cooperation and collaboration among the public sector.

Nevertheless, as highlighted throughout the webinar, the fundamentals are there for MaaS to be a success.

If you enjoyed reading this, you may also be interested in our other posts on the potential of smart cities and lessons from public transport in Nordic countries.

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Designing for positive behaviours

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St Paul's Cathedral, London, England

By Heather Cameron

“We shape our buildings; thereafter they shape us” – Winston Churchill, 1943

This much borrowed saying from the former prime minister was made during the 1943 debate over the rebuilding of the House of Commons following its bombing during the Blitz. Although many were in favour of expanding the building to accommodate the greater number of MPs, Churchill insisted he would like it restored to “its old form, convenience and dignity”. He believed that the shape of the old Chamber was responsible for the two-party system which is the essence of British parliamentary democracy.

Indeed, it has since been widely acknowledged that the built environment has a direct impact on the way we live and work, thus affecting our health, wellbeing and productivity. A new report from the Design Commission, which opens with Churchill’s statement, is described as “a very valuable contribution” to the debate on how the design of the built environment can influence the way people think and behave, “making a healthier, happier and more prosperous and sustainable country”.

Impact of design

The report, which follows a year-long inquiry, is described as providing “solid evidence in difficult areas” on what it is in the built environment that makes people’s lives better. Evidence was gathered on four specific areas believed to be the most important to national policy:

  • health and wellbeing
  • environmental sustainability
  • social cohesion
  • innovation and productivity

It is suggested that design acts at two levels: it can affect individual choices of behaviour, which can then affect health and sustainability; and it can affect the way people are brought together or kept apart, which can then affect communication and creativity, or social cohesion.

The inquiry therefore looked into how people’s behaviour, health and wellbeing are affected by their surroundings; the role design can play in encouraging environmentally sustainable behaviours; the role design can play in social cohesion through its effects on creating or inhibiting co-presence in space; and how the design of work environments can drive innovation and improve efficiency, therefore tackling the current ‘productivity crisis’.

The evidence

The evidence highlights the built environment as “a major contributing factor to public health”. A range of public health issues, including air pollution and obesity, were suggested to be directly linked to factors within the built environment. Other recent research has similarly highlighted this link between health and urban design.

Evidence of the potential for design to positively influence sustainability behaviours, such as greater cycling and walking activity, was also highlighted, with New York cited as a good practice example.

Providing evidence on social cohesion, a senior university lecturer stated that “to divorce the physical from the social environment is inappropriate”. Other submissions referred to the “alienating effects” of various aspects of modern corporate life on civic participation, including estate management, crime and safety, the perceived negative impacts of poorly-conceived urban planning and poor or no maintenance.

Well-designed places, on the other hand, are suggested to improve access and facilitate social cohesion. Nevertheless, the evidence also noted that regardless of how well designed a place may be, “neglecting its aftercare will lead to antisocial behaviour and environmental damage.”

The relationship between the built environment and productive behaviours is supported by substantial evidence, according to the report. In the context of the UK, a lack of access to daylight and fresh air is cited as a reason for offices failing to get the best out of their workers. One study cited, indicated an increase in levels of both wellbeing and productivity in office environments with so-called ‘natural elements’.

Policy – “muddled and fragmented”

While there is evidence of good practice throughout the UK, a principal argument from the report is that more needs to be done.

Policy making for the built environment has traditionally been “muddled and fragmented”, according to the report. It suggests that there is a lack of understanding of the significance of the influence of the built environment on behaviour among policy makers at all levels and therefore makes recommendations for central government, local government and the private sector.

It argues that the relationship between government and local authorities requires reconsideration, calling for greater power at local government level.

Despite encouraging steps with regard to devolution in positively impacting behaviour and quality outcomes, such as in London, it is suggested that more can be done in terms of better collaboration between all stakeholders.

It is also noted that as national policy will be now be conducted in the context of Brexit, adaptation of the regulatory regime will be required.

Final thoughts

The key message from the Design Commission’s inquiry is evidently that the design of the built environment is particularly important in the context of current challenging times for the UK:

 “The way we design our built environment could be one of our greatest strengths in navigating the course ahead… If we get this right, we can build a Britain that is healthier, happier and more productive.”

If you enjoyed reading this, you may be interested in some of our previous posts on related topics:

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Scotland’s space sector: a launchpad for economic growth

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Discovery space shuttle on launchpad

By Steven McGinty

In March, the UK Space Agency announced it had awarded £50,000 to the University of Strathclyde’s Scottish Centre for Satellite Applications (SoXSA) for its work with Glasgow City Council to attract entrepreneurs and start-ups to Glasgow’s innovation hub, Tontine.

Six companies will benefit from the support, which includes space industry specific business support, dedicated workshops and expertise, and administration and accommodation costs for two years.

The award is another sign of faith in Scotland’s burgeoning space industry, which has seen it become a global leader in the ‘New Space’ economy.

The development of New Space

The space industry, like many other technology fields, has been traditionally dominated by nation states, often in terms of national security.

But now, a new space industry is emerging, where private companies and entrepreneurs are developing innovative products and services in or for space. Reasons for this include reductions in funding to national space agencies, such as Donald Trump’s recent cuts to NASA, as well as the private sector’s success in innovation. For example, the company Space X has managed to launch rockets that had previously been into space – a practice which has been estimated to reduce the first stage of space flight from $60 million to $500,000.

Scotland’s role

Within a few miles of Glasgow’s city centre, a small number of research groups and private companies have gained international reputations for their work on space technologies.

For instance, Glasgow – a city more known for its heavy industries and shipbuilding – has found a niche in manufacturing low cost nanosatellites. This has led to Glasgow being crowned ‘Europe’s Satellite City’.

Glasgow’s first satellite company, Clydespace, has been tremendously successful over the past decade by developing CubeSats (a satellite the size of a wine bottle). These have been used in a range of missions, including UKube-1, the first mission to be commissioned by the UK Space Agency as a demonstrator for space technologies.

The city has also seen investment from Spire Global – a satellite powered data company headquartered in San Francisco. Spire’s satellites, which are used to gather data on weather, maritime, and aviation, were built by Clydespace. Peter Platzer, CEO of Spire, explains that:

“We have up there about 20 satellites, all exclusively built here in Glasgow.”

Mr Platzer highlights that Scotland’s confidence in Spire was one of the reasons that they opened their European office in Glasgow’s Skypark. The company received a £1.5m Scottish government grant through the agency Scottish Development International (SDI).

Scotland’s low cost base and universities with strong interests in engineering and space technologies were also highlighted as key selling points.

Young innovators have also sought to get involved in Scotland’s space sector. For example, Tom Walkinshaw, founded Alba Orbital from his bedroom when he was unable to secure a job in the space industry. His company provides PocketQube satellites (based on a design of one or more 5cm cubes) and now employs 10 skilled employees. Alba Orbital’s first satellite, Unicorn-1, is backed by the European Space Agency and is due for launch later in the year.

In academia, the University of Glasgow’s LISA Pathfinder team won the 2016 Sir Arthur Clarke Award for “Space Achievement in Academic Research or Study”. The award was given for the team’s work on developing the Optical Bench Interferometer (OBI) for the European Space Agency’s LISA Pathfinder spacecraft – a demonstrator aimed at measuring gravitational waves in space.

The future of Scotland’s space economy

A report by London Economics investigated the potential benefits of a spaceport in Scotland.

Prestwick Airport in South Ayrshire and Machrihanish, near Campbeltown, are currently competing to win a licence from the UK Government.

London Economics have set out three main advantages to having a local spaceport:

  • Spaceport operations – The activities associated with a spaceport will lead to the direct creation of jobs in commercial spaceflight or providing satellite launches, as well as indirect benefits for local suppliers.
  • Space tourism – Tourists visiting space stations or taken part in space travel are also likely to spend money in the surrounding areas and on other attractions.
  • Space-related education – Spending will increase on research and development due to the creation of a spaceport.

Tom Millar, managing director of DiscoverSpace UK, has also stated that sending small satellites into space would be a ‘viable revenue stream’. A local spaceport would reduce the costs for Scottish satellite companies as at the moment they currently have to ‘piggyback’ onto launches with larger satellites.

The report concludes by finding that a spaceport in Scotland would increase growth from 9% to 10% of the UK’s space economy in 2030.

The implications of Brexit

The results of the 2016 EU Referendum has caused uncertainty for the Scottish space sector. For example, many companies will be concerned for the rights of EU national employees, as well as their ability to recruit from this workforce in the future.

The Financial Times has also reported that changes in terms could keep UK companies out of lucrative European space contracts, such as the €10bn Galileo satellite navigation system. The European Commission are looking to change the terms of the Galileo project so that contracts can be cancelled if a company is not based in a member state. They also require companies to pay the costs of finding a replacement. If these terms are approved, it would effectively rule out UK-based companies bidding for EU projects, which would have a negative impact on the sector’s growth.

Final thoughts

Scotland’s space sector is estimated to be worth £134 million and accounts for 18% of all UK space industry jobs. Its success has been built on a combination of government support, talented entrepreneurs, and a supply of skilled engineers.

As the industry continues to grow, there will still be an important role for government, particularly in supporting innovation centres and granting licences for UK spaceports. The promotion of STEM (science, technology, engineering and maths) subjects will also be crucial, as we look to develop a new generation of space entrepreneurs to keep us ahead of this new industrial space race.

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Smarter tourism: solving the data problem to boost tourism and create better cities

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By Steven McGinty

On 22 March, I attended ‘Smarter Tourism: Shaping Glasgow’s Data Plan’, an event held as part of DataFest 2017, a week-long festival of data innovation with events hosted across Scotland.

Daniel MacIntyre, from Glasgow City Marketing Bureau (the city’s official marketing organisation), opened the event by highlighting Glasgow’s ambitious target of increasing visitor numbers from two million to three million by 2023.

To achieve this goal, Mr MacIntyre explained that the city would be looking to develop a city data plan, which would outline how the city should use data to solve its challenges and to provide a better experience for tourists.

In many ways, Glasgow’s tourism goal set the context for the presentations that followed, providing the attendees – who included professionals from the technology and tourism sectors, as well as academia and local government – with an understanding of the city’s data needs and how it could be used.

Identifying the problem

From very early on, there was a consensus in the room that tourism bodies have to identify their problems before seeking out data.

A key challenge for Glasgow, Mr MacIntyre explained, was a lack of real time data. Much of the data available to the city’s marketing bureau was historic (sometimes three years old), and gathered through passenger or visitor experience surveys. It was clear that Mr MacIntrye felt that this approach was rather limiting in the 21st century, highlighting that businesses, including restaurants, attractions, and transport providers were all collecting data, and if marketing authorities could work in collaboration and share this data, it could bring a number of benefits.

In essence, Mr MacIntyre saw Glasgow using data in two ways. Firstly, to provide a range of insights, which could support decision making in destination monitoring, development, and marketing. For instance, having data on refuse collection could help ensure timely collections and cleaner streets. A greater understanding of restaurant, bar, and event attendances could help develop Glasgow’s £5.4 million a year night time economy by producing more informed licensing policies. And the effectiveness of the city’s marketing could be improved by capturing insights from social media data, creating more targeted campaigns.

Secondly, data could be used to monitor or evaluate events. For example, the impact of sporting events such as Champions League matches – which increase visitor numbers to Glasgow and provide an economic boost to the city – could be far better understood.

Urban Big Data Centre (UBDC)

One potential solution to Glasgow City Marketing Bureau’s need for data may be organisations such as the Urban Big Data Centre.

Keith Dingwall, Senior Business Manager for the UBDC, explained that the centre supports researchers, policymakers, businesses, third sector organisations, and citizens by providing access to a wide variety of urban data. Example datasets include: housing; health and social care data; transport data; geospatial data; and physical data.

The UBCD is also involved in a number of projects, including the integrated Multimedia City Data (iMCD) project. One interesting aspect of this work involved the extraction of Glasgow-related data streams from multiple online sources, particularly Twitter. The data covers a one year period (1 Dec 2015 – 30 Nov 2015) and could provide insights into the behaviour of citizens or their reaction to particular events; all of which, could be potentially useful for tourism bodies.

Predictive analytics

Predictive analytics, i.e. the combination of data and statistical techniques to make predictions about future events, was a major theme of the day.

Faical Allou, Business Development Manager at Skyscanner, and Dr John Wilson, Senior Lecturer at the University of Strathclyde, presented their Predictive Analytics for Tourism project, which attempted to predict future hotel occupancy rates for Glasgow using travel data from Glasgow and Edinburgh airport.

Glasgow City Marketing Bureau also collaborated on the project – which is not too surprising as there a number of useful applications for travel data, including helping businesses respond better to changing events, understanding the travel patterns of visitors to Glasgow, and recommending personalised products and services that enhance the traveller’s experience (increasing visitor spending in the city).

However, Dr Wilson advised caution, explaining that although patterns could be identified from the data (including spikes in occupancy rates), there were limitations due to the low number of datasets available. In addition, one delegate, highlighted a ‘data gap’, suggesting that the data didn’t cover travellers who flew into Glasgow or Edinburgh but then made onward journeys to other cities.

Uber

Technology-enabled transport company, Uber, has been very successful at using data to provide a more customer oriented service. Although much of Uber’s growth has come from its core app – which allows users to hire a taxi service – they are also introducing innovative new services and integrating their app into platforms such as Google Maps, making it easier for customers to request taxi services.

And in some locations, whilst Uber users are travelling, they will receive local maps, as well as information on nearby eateries through their UberEATS app.

Uber Movement, an initiative which provides access to the anonymised data of over two billion urban trips, has the potential to improve urban planning in cities. It includes data which helps tourism officials, city planners, policymakers and citizens understand the impact of rush hours, events, and road closures in their city.

Chris Yiu, General Manager at Uber, highlighted that people lose weeks of their lives waiting in traffic jams. He suggested that the future of urban travel will involve a combination of good public transport services and car sharing services, such as uberPOOL (an app which allows the user to find local people who are going in their direction), providing the first and last mile of journeys.

Final thoughts

The event was a great opportunity to find out about the data challenges for tourism bodies, as well as initiatives that could potentially provide solutions.

Although a number of interesting issues were raised throughout the day, two key points kept coming to the forefront. These were:

  1. The need to clarify problems and outcomes – Many felt it was important that cities identified the challenges they were looking to address. This could be looked at in many ways, from addressing the need for more real-time data, to a more outcome-based approach, such as the need to achieve a 20% reduction in traffic congestion.
  2. Industry collaboration – Much of a city’s valuable data is held by private sector organisations. It’s therefore important that cities (and their tourism bodies) encourage collaboration for the mutual benefit of all partners involved. Achieving a proposition that provides value to industry will be key to achieving smarter tourism for cities.

Follow us on Twitter to see what developments in public and social policy are interesting our research team. If you enjoyed this article, you may also be interested in: 

Controlling the urban landscape: the pros and cons of putting public spaces in private hands

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A 2007 report from the Royal Institution of Chartered Surveyors (RICS) described the growing private ownership and management of the public realm as a “quiet revolution in land ownership”.

The study included a handful of early examples, such as the Excel Centre and Canary Wharf in London, and Liverpool’s Paradise Street development (later rebranded Liverpool One). Since then, more of these privately owned public spaces (POPS) have been appearing across the UK, including Granary Square and the Queen Elizabeth Olympic Park in London, Gunwharf Quays in Portsmouth, and Brindleyplace in Birmingham.

The evolution of public space

Until relatively recently, local government owned, managed and maintained streets and squares in the UK’s towns and cities. But over the past two decades, budgetary constraints have diminished local authorities’ ability to maintain the public realm. Increasingly, the gap has been filled by the private sector, which has created new POPS.

On the face of it, the redevelopment of previously run-down areas with no cost to the public purse would appear to be a good thing. But there are concerns about the private landlords of these spaces who have the power to restrict and control activities of the public using these spaces.  Alongside these new private-public developments, the rise of Business Improvement Districts (BIDs) has increased private sector influence over town and city centres.

A bridge too far?

The issue of privatised public spaces was given renewed prominence with the proposals for a new “Garden Bridge” across the River Thames. Designed by Thomas Heatherwick  the project envisions a pedestrian bridge with its own elevated garden.

Supporters say the Garden Bridge will enrich London, providing economic, environmental and aesthetic benefits. But opponents have expressed concerns about a list of rules prohibiting activities on the bridge, such as busking and cycling. Restrictions of this kind have been applied to other POPS, sometimes resulting in awkward encounters between members of the public and security guards representing the property managers.

As things stand, the fate of the Garden Bridge remains uncertain, following the decision by the Mayor of London to set up an inquiry into the project’s use of public money, and a warning from the National Audit Office that the money may have been wasted.

The pros and cons of POPS

But does it really matter if urban spaces that appear to be public are actually privately-owned?

No, say POPS supporters. Without private funding, spaces such as Brindleyplace and LiverpoolOne might not have been developed at all. Furthermore, the cost of maintaining these privately owned public spaces can be borne by the private sector, instead of local authorities (and the taxpayer). They also point to Liverpool One as a successful example of town centre regeneration, and suggest that private ownership of public space can be a catalyst for renewal of neglected spaces.

But others are unhappy with the creeping privatisation of public spaces, arguing that they sacrifice community spirit and historical identity for the sake of a sterile, monotonous, corporatised spaces. Opponents of POPS are also concerned about the restrictions land owners place on such spaces.

The view from Aberdeen

One city which has recently bucked the trend towards private control over public spaces is Aberdeen. In 2010, the city council planned to hand over the historic Union Terrace Gardens in the city centre to a consortium of business interests – Aberdeen City Garden Trust – under a long lease. The trust released its plans to redesign the Victorian park, raising the sunken gardens to street level. Campaign groups mounted opposition to the scheme, but it was narrowly approved in a city-wide referendum in 2012. However, a new Labour administration came to power shortly after the referendum, and the scheme was finally scrapped. During the summer of 2016, the council announced new plans to redevelop the site, which will remain in public hands.

Final thoughts

The Aberdeen example shows that moves to put public spaces in private hands are not universally popular, or inevitable. Even so, many local authorities are struggling to maintain public spaces, leaving the way open for private developers. The Queen Elizabeth Olympic Park, in the borough of Newham, is one of the most recent POPS to appear in London. Sir Robin Wales, the elected mayor of Newham would have preferred the park to be maintained using public funds, but has accepted that his borough could not afford to manage it: “We know we don’t have an income stream.”

Enjoyed this article? Read these other articles written by our team:

Costs and benefits of the National Living Wage

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By Heather Cameron

Britain’s bosses have been urged by the government to prepare early for the introduction of the National Living Wage (NLW) in April next year.

Firms are advised to follow four simple steps:

  • know the correct rate of pay – £7.20 per hour for staff aged 25 and over
  • find out which staff are eligible for the new rate
  • update the company payroll in time for 1 April 2016
  • communicate the changes to staff as soon as possible

Support

This push coincides with a new poll revealing that 93% of bosses support the Living Wage initiative, with a majority believing it will boost productivity and retain staff.

This is supported by new research by the University of Strathclyde and the Living Wage Foundation (LWF), which uses real-life case studies and evidence from employees working for accredited Living Wage employers. It suggests that paying staff a living wage leads to many business benefits – such as staff retention, more efficient business processes, improved absenteeism and better staff performance.

Potential benefits

Many of the findings highlighted relate to research on the London Living Wage (LLW). Among these include:

  • 50.3% of employees receiving the LLW registered above average scores for psychological wellbeing, a sign of good morale, compared to just 33.9% of non-LLW employees studied
  • an average 25% reduction in staff turnover was reported for organisations moving to the LLW
  • and 70% of employers studied reported reputational benefits through increased consumer awareness of their commitment to being an ethical employer

Estimates show that 4.5 million employees will see a rise in their wages as a result of the introduction of the NLW in 2016, with a further 2.6 million gaining from spillovers. By 2020, 6 million employees are predicted to have received a pay increase.

Up to one in four workers are expected to experience a significant positive impact from the NLW. If the result is indeed a happier workforce, perhaps the knock-on effect for businesses will be improved productivity.

There will however be variation across different parts of the UK and across different households, depending on how the NLW interacts with the tax and benefit system (it should be noted that many estimates were made prior to the u-turn on welfare reform). And let’s not forget that the NLW is not for all as under-25s will not be eligible.

Costs to employers

The impact on employees and therefore employment generally, will also depend on the actions firms take to prepare for the NLW in order to mitigate costs.

Indeed, the research from Strathclyde and LWF recognises that implementing the NLW will inevitably involve initial costs to businesses and could represent an issue for some companies more than others.

According to the Federation for Small Businesses, a negative impact on business is expected by 38% of small employers, with many expected to slow their hiring and raise prices.

It has been estimated that the NLW may lead to an increase in the unemployment rate by 0.2% points in 2020; resulting in around 60,000 more people unemployed and total hours worked per week across the economy around 4 million lower.

Businesses may also look to employ those under the age of 25 who won’t be eligible for the NLW. This could particularly impact on those sectors with a high proportion of lower paid employees, such as social care – a sector that is already under financial pressure.

The roll out of the Living Wage has certainly raised concern over potential costs for councils, which are having to deal with increasing budget cuts. The Local Government Association (LGA) has estimated that the NLW could cost local authorities £1bn a year by 2020/21.

So while increasing wages for low paid workers may seem like a no-brainer in the bid to help reduce in-work poverty, the full impact on employees, employers and therefore the economy, remains uncertain. Only time will tell what the true impact of the NLW will be.

Further reading: if you liked this blog post, you might also want to read our previous blog on the Living Wage. 

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eGov Singapore: award winning leader in digital government

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By Steven McGinty

“Singapore leads in all dimensions of digital readiness and scores high in economic competitiveness, citizen engagement as well as public sector productivity.”

These are the words of Ng Wee Wei, Managing Director (Health & Public Service) at Accenture, in Singapore. He made this statement on the day Singapore was ranked number one for digital government, in a comparative study carried out by Accenture.

However, this is just one of the many accolades won by Singapore. Other notable successes have included:

In my latest article on digital government around the world, we’ll take a look at how this island city state has become a global leader and what can be learned from their experience.

E-government policy development

In the 1970s the Singapore government realised that they were unable to compete with the larger labour-intensive economies. As a result, they identified ICT as a way of improving economic performance, particularly through increasing labour productivity, making processes leaner and more efficient, and delivering better services to customers.

In 1982, the government launched the Civil Service Computerization Program (CSCP). The programme’s main objective was to enhance public administration through the effective use of ICT. This involved developing new business processes, automating work functions and reducing paperwork for greater internal operational efficiencies. In essence, it provided the foundation for subsequent e-services.

Throughout the 1980s and the 1990s the government started to develop the programme. For instance, the National Information Technology Plan (NITP) was introduced to support cross agency collaboration. This led to the creation of “TradeNet”, an application that enabled exchange of documents between the private sector and various government agencies.

As Singapore entered the new millennium, the e-Government Action Plan (2000-2003) (eGAP 1) was launched. This was the first of what the government now calls the ‘eGov masterplans’.  It set out the aim that:

“All government services that can be delivered electronically shall be delivered through electronic means”.

The second e-Government Action Plan (2003-2006) emphasised improving the customer experience, connecting citizens with each other and fostering collaboration between government agencies.

The third, iGov2010 Masterplan (2006-2010), had a strong focus on integrating government services, making sure that processes cut across agencies. In addition, increasing the e-engagement of citizens was also a key objective, particularly in fostering greater bonds within different communities, such as young people.

Most recently, the government introduced the eGov2015 Masterplan (2011-2015), which outlined the vision of collaboration between the government, the private sector and the people through digital technologies. There was also a recognition that the government should act as a platform provider to encourage greater co-creation of new e-services.

Key features of eGov Singapore

  • SingPass

Singpass (Singapore Personal Access) was introduced in March 2003 and enables citizens access to government e-services, from over 60 government agencies via a single platform. In total, there are 3.3 million registered users, with transactions increasing from 4.5 million in 2003 to 57 million in 2013. The system provides a high level of security for users, as well as removing the need for agencies to develop and administer their own.

In July 2015, an Enhanced SingPass was introduced. It included improvements such as the option to customise the SingPass ID, mobile-friendly features, and stronger security capabilities. However, the updates proved to be so popular that on their initial release the website was temporarily inaccessible due to high traffic.

  • data.gov.sg

data.gov.sg was launched in June 2011 and is Singapore’s first stop portal for publicly available government data, as well as applications developed using government data.  The portal has increased to over 8,700 datasets (covering a range of themes, from business and the economy to housing and urban planning), with contributions coming from over 60 government agencies.

The government has introduced schemes such as ideas4apps Challenge and Harnessing Data for Value Creation Call-for-Collaboration (CFC) to encourage the creative use of government data. One example from the portal’s showcase is FixMyStreet, an app which allows citizens to report, view or discuss issues with public facilities, such as litter and broken lifts.

  • eCitizen

eCitizen was introduced in 1999 and is the first-stop portal for government information and services. When the portal was first introduced it pioneered the concept of cross-agency, citizen-centric government services, where users transact with ‘one government’ (the ability to access several government services via the one website).

In 2013, the eCitizen portal was recognised for “Outstanding Achievement” in the Government category of the Interactive Media Awards. It beat 137 other nominees to the award, which evaluates entries based on: design; content; feature; functionality; usability; and standards compliance. Since the portal’s redesign in 2012, there has been a 65% increase in visitors, with significant improvement in the success rates of searches (up to three times).

 What key lessons can countries learn from Singapore?

In the book, National Strategies to Harness Information Technology: Seeking Transformation in Singapore, Finland, the Philippines, and South Africa, Jeannie Chua outlines the key lessons that other countries can take from the Singaporean experience. This includes:

  • Stable political leadership

Singapore has had the same political party in charge of its Cabinet since 1959. This high level of political stability is rare, unlikely to occur in most countries and not necessarily desirable for democracy. However, it does highlight the importance of some level of continuity for progressing a digital agenda, whether that’s within the same government or across different government administrations.

  • Industry collaboration – getting the private sector to do more

The use of government intervention to create opportunities for the private sector and providing effective working partnerships has been very successful in Singapore. This ‘catalyst’ role has encouraged innovation and supported the creation of a successful ICT industry.

  • The willingness to innovate and take risks

Singapore’s willingness to adopt technologies at an early stage has proved to be a success.  For instance, the National Library of Singapore adopted RFID (radio-frequency identification) technology, the use of radio waves to automatically identify people or objects, even though it was relatively untested at the time.

 Final thoughts

Singapore has been successful at creating a strong foundation for e-government and is deserving of all its accolades. The success has been built on a combination of factors including political willingness and economic policies. However, what has also been important is the country’s ability to learn from each stage in its development.

As the country moves forward, key issues such as cybercrime and privacy concerns will have to be addressed. In 2014, there was a security breach involving 1,560 Singpass accounts. A year later, the government introduced a new central government agency for cybersecurity operations. It’s hoped that this central agency will be able to bolster the country’s critical ICT infrastructure.

It’s these measures, and its ability to act swiftly, that will hold Singapore in good stead for the future. This is maybe the real lesson for those looking to emulate Singapore’s e-government success.

Enjoy this article? Read our other recent blogs relating to the digital economy:

IDOX Plc announced on 8 October 2015 that it had acquired the UK trading arm of Reading Room Ltd. Reading Room, founded in 1996, is a digital consultancy business with a focus on delivering websites and digital services that enable its customers to make critical shifts into digital business and client engagement. It has an international reputation for its award winning and innovative approaches to strategic consultancy, design, and technical delivery.

The UK digital economy: how can the government support digital businesses?

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By Steven McGinty

Last month, the House of Commons Business, Innovation and Skills (BIS) Committee launched an inquiry into the UK’s digital economy. Iain Wright MP, the Chair of the Committee, explained that:

“Digital technology is rapidly changing the economic landscape in which firms operate. Nothing short of a digital and tech revolution is taking place, with new entrepreneurs and business models emerging and existing businesses having to adapt quickly to keep pace.”

The inquiry will focus on three areas:

  • Government actions affecting businesses in the digital economy;
  • how to maximise the opportunities and overcome challenges in the sector;
  • how the sector can contribute to improving national productivity.

The BIS Committee is asking for submissions from those involved in the digital economy, including digital businesses and companies hoping to benefit from technology.

 Why should the government support the digital economy?

Innovate UK expect that, by 2015, the UK digital economy will account for 10% of GDP. Tech City UK report that the sector employs 1.5 million people (about 7.5% of the total workforce); although this is expected to increase by 5.4% by 2020. In 2013-2014, 15% of all the companies formed were digital businesses. Most were based outside of London (74%) and nearly all were SMEs (98%). The majority (90%) of digital companies expect revenues to grow within the next year.

Technology clusters

Technology clusters play an important role in the UK’s digital economy. There are 21 clusters across the UK, with expertise ranging from software development to marketing and advertising. The majority of digital businesses consider themselves part of a cluster (65%). Bournemouth has the fastest growing digital cluster, with a 212% increase in the number of companies formed since 2010. Its specialism is digital marketing and advertising.

This growth suggests specific focus should be given to technology clusters. Tech City UK found that a third of digital companies highlighted access to funding as a challenge, particularly outside of London and the South East.  One suggestion offered by Tech City UK is that businesses need to take advantage of European funding where possible.

Other forms of support could include: providing fast and accessible broadband; access to a pool of skilled employees; suitable workspace, particularly in the South East; and business and mentoring advice.

Digital Economy Strategy 2015-2018

At the beginning of the year, Innovate UK set out a strategy to support UK businesses in getting the most out of digital technology. It sets out five main objectives:

  • Encouraging digital innovators
  • Focusing on the user
  • Equipping the digital innovator
  • Growing infrastructure, platforms and ecosystems
  • Ensuring sustainability.

Within the strategy, actions are put forward for how these goals will be achieved. For instance, to ensure sustainability, Innovate UK would work closely with UK research councils to encourage cross-disciplinary academic collaboration and help connect it to real-world business needs. If even some progress is made with each of these objectives it would be hugely beneficial for the UK digital economy.

Innovation centres – the Digital Catapult

The Digital Catapult is a national centre that aims to accelerate the UK’s best digital ideas to the marketplace, in order to create new products, services and jobs. It was established in 2014 by Innovate UK and is based in the Knowledge Quarter in Kings Cross. There are also three local centres in the North East and Tees Valley (NETV), Brighton, and Yorkshire.

The Digital Catapult centres focus on the challenges associated with: closed organisational data; personal data; creative content; and the internet of things (IoT). The centres are involved in a number of projects, including IoTUK, which has been launched as part of a £40 million government investment in the internet of things (the use of networks to allow the exchange and collection of data from everyday objects, such as fridges). The programme aims to increase the adoption of high quality IoT technologies and services throughout business and the public sector.

Regina Moran, CEO at Fujitsu UK&I, notes that:

“The IoT has the potential to turn ideas in a hyper-connected world into fully realised digital services but it has challenges ahead and it’s encouraging to see the Government investing in its development.”

 Regulation

The Prime Minister, David Cameron, has managed to convince the European Commission (EC) to review the VAT regime for tech start-ups, arguing that it punished British entrepreneurs. The regime, which was implemented in January, forced companies to pay tax in every country they traded in rather than their headquarters. It also eliminated a £81,000 threshold for which companies have to register for VAT duty.

However, the Commission has recognised that this was adversely affecting small businesses. Therefore, measures such as the reintroduction of the VAT threshold and a single registration scheme for cross-border taxes, will be included in the Commission’s consultation.

The UK government’s approach shows a commitment to providing a competitive business environment and a single European market in digital services. It’s likely that most digital businesses would support the government’s approach.

Concluding remarks

The upcoming BIS Committee inquiry will provide an opportunity to reflect on the government’s approach so far. Although evidence confirms that the digital economy has been growing, there may be areas that the UK is failing to capitalise on. In a highly competitive globalised economy, it’s important that the UK exploits any strategic advantage, ensuring that innovative ideas are brought to the market quickly.

The inquiry will also provide an opportunity for a dialogue between the government and the private sector. This increased collaboration can only be good news for the UK’s digital businesses.

Here at Idox, we take an active interest in the future of the digital economy and eagerly await the Committee’s findings.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.

Enjoy this article? Read our other recent blogs relating to the digital economy:

IDOX Plc announced on 8 October 2015 that it had acquired the UK trading arm of Reading Room Ltd. Reading Room, founded in 1996, is a digital consultancy business with a focus on delivering websites and digital services that enable its customers to make critical shifts into digital business and client engagement. It has an international reputation for its award winning and innovative approaches to strategic consultancy, design, and technical delivery.

The Government Digital Service: successes, turmoil, and the focus for the future

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By Steven McGinty

In April 2011, the Government Digital Service (GDS) was launched to lead the digital transformation of government. The focus was on making public services digital by default (a policy which envisions most public services being delivered online), and simpler, clearer and faster to use.

Their first major project was the development of GOV.UK. It was to act as the primary source for UK government data and would replace a number of existing websites, including DirectGov. Overall, GOV.UK has been viewed as a GDS success story.

In the latest GDS progress report, it was highlighted that:

  • Over 300 agency and arm’s length bodies’ (ALB) websites had been transitioned over to GOV.UK by the end of 2014;
  • The GOV.UK website averaged 12 million weekly unique visitors in the first quarter of 2015 (25th most used website in the UK);
  • The GOV.UK website saw 13.6 million unique visitors and 21.2 million visits in the last week of January 2015 (this was the likely the result of the 31st January Self-Assessment tax return deadline).

However, GOV.UK has not been without its critics. In February, the Register revealed documents that said that the GDS knew that GOV.UK was:

“destroying useful online services and replacing them with trendy webpages bereft of useful information”

One noted failure was the transition of the Home Office visa and immigration site to GOV.UK. According to their own analysis, the GDS did not have a good enough understanding of the users’ needs.

GDS in turmoil?

At the beginning of August 2015, Executive Director of the GDS Mike Bracken announced he was leaving. In an interview, Mike Bracken explained that he was leaving due to the “stresses and strains” of the role. The current GDS Chief Operating Officer Stephen Foreshew-Cain will move up and replace him.

There have also been a number of other senior GDS leaders departing. These include:

  • Deputy Director Tom Loosemore
  • Director of Strategy Russell Davies
  • Director of Design Ben Terrett
  • Head of User Research Leisa Reichelt
  • Transformation Programme Director of the Government Digital Service Michael Beaven.

These changes have led to speculation about the future of the GDS. Last financial year, the service had a budget of £58 million and approximately 700 members of staff. Computerworld have suggested that the GDS could undergo substantial cuts as part of the HM Treasury’s spending review.  If so, the impact could fundamentally change the GDS’ role.

The future

In August, Matt Hancock MP, Minister for the Cabinet Office, reiterated his support for the GDS. He said:

“the work that GDS is doing, and the vision of Government as a Platform, is changing the core infrastructure of shared digital systems, technology and processes.”

The Minister then went on to emphasise that the GDS has extremely talented people and has a lot more to contribute in the future.

In addition, Eddie Copeland, Head of Technology Policy at the Policy Exchange has outlined 5 points of focus for the ‘next phase’ of the GDS. These include:

  • Be guardian of the rules – the government should lead the way in defining the standards of how front-end government IT should work, although should not be concerned about who provides it, whether that’s public or private sector.
  • Focus on the user / citizen experience – the government should focus on providing a positive customer experience and creating online transactions that are needed.
  • Lead on open standards for data – the use of open standards would reduce the technical barriers to sharing information between different systems.
  • Be an informed customer – failed IT projects were often the fault of the government, therefore the government needs to become a smarter, more demanding customer.
  • Scale best practice – all departments should learn from the successes of the GDS, and try to implement innovative solutions where possible.

 Final thoughts

It’s likely that the GDS will play an important role in the continued digital transformation of government services. However, some – including Eddie Copeland – believe that the GDS will become a smaller organisation.  As a result, there may be opportunities for the private sector to get involved in supporting the digital transformation, particularly if they can provide a solid business case.

Follow us on Twitter to see what developments in public and social policy are interesting our research team.

Read our other recent articles on digital government:

Addressing the causes of in-work poverty

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Image from Flickr user MoB68, licensed for reuse under Creative Commons License

Image from Flickr user MoB68, licensed for reuse under Creative Commons License

By Donna Gardiner

This week is Living Wage Week and the issue of workers struggling to make ends meet has been in the news again. Back on 23rd September 2014, I attended an event held by the Glasgow Centre for Population Health (GCPH) on the changing nature of work and in-work poverty in the UK, with a specific focus on Glasgow.

Over 100 delegates from across the public, private and voluntary sectors came together to learn about the latest research findings, take part in round table discussions and contribute to a panel debate on how to address the causes of in-work poverty. Speakers included experts on poverty from the Scottish Government, Glasgow City Council, Ipsos MORI, the Employment Research Institute at Napier University and the Glasgow Centre for Population Health.

The day began with a presentation by Jill Morton, from the Communities and Analytical Services division of the Scottish Government. Jill provided an overview of the Scottish Government’s policy commitments to tackle poverty, and highlighted recent statistics regarding the incidence of poverty in Scotland.

She reported that, in Scotland in 2012/13 (the most recent data available), 16% of people, and one in five children, were living in poverty.

Jill noted that whilst employment was the best route out of poverty, it was no longer a safeguard against poverty as over half of all working age adults in poverty in Scotland were from households in which at least one person was in employment. Six in ten children in poverty were also from working households. Jill concluded that for poverty to decline, lower income households must have access to quality and sustainable employment.

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