data is the new oil pdfs/abbie pdfs/sw19/duchess_o… · empowering people to deliver social value...

# S O U T H W E S T 2 0 1 9

DATA IS THE NEW OIL

Colin SalesManaging director, 3C Consultants

Session chaired by Chris Grose

Empowering people to deliver social valueEmpowering people to deliver social value

Data is the New Oil

Colin Sales, Managing Director 3C Consultants Ltd

15th May 2019


Specialist housing ICT consultants

Lessons learned to create bespoke solutions

Expertise from inside and outside sector


data/ˈdiertə/

noun

Definition: facts and statistics collected together for reference or analysis

Setting the context


Data Is the New Sex

April 5th 2019

Setting the context


purpose/ˈpəːpəs/

noun

The reason for which something is done or for which it exists

Setting the context


happiness/ˈhapinəs/

noun

The state of being happy

Feeling or showing pleasure or contentment

Setting the context


Happiness = Achievement▪ Effortless achievement

▪ Frustrated when you don’t achieve your objective

▪ To make people happy, help them to fulfil their objectives

Setting the context


Largest companies in the world by market value (in billion US dollars)

The data ageSpeed of change


Setting the contextSpeed of change

March 2011 March 2018


Setting the contextSpeed of change

My iPhone usage:

WhatsApp 21%

Mail 16%

Phone 15%

Safari 10%

Other 38%

My 23 year old son’s iPhone usage:

Instagram 42%

WhatsApp 33%

Safari 15%

Phone 0%

Other 10%

In 2017 the Snapchat float saw the share price immediate increase by 50%

The company has only ever made a loss


Setting the contextDeath of the phone

1. Browsing the internet

2. Social networking

3. Playing games

4. Listening to music

5. Emails

6. Making calls

7. Text messaging

8. Taking photographs

9. Watching TV/films

10. Reading books

54% now use their phones in place of an alarm clock

46% have dispensed with a watch in favour of their smart phone

39% have switched to use their phone instead of a separate camera

26% use their phone in place of a laptop

2014 Mobile internet usage overtook PC access

Smartphones outsell toothbrushes


What’s next?

▪ Smart everything

▪ Artificial intelligence

In 2016 – digital natives

became the majority

customer segmentAnalogue

Digital

Internet

Social

Mobile and

4G

Broadband

and wifi

Maturists Baby boomers Gen X Gen Y Gen Z

Setting the contextWhy not change?


Setting the contextThe big numbers

>50%

21bn 40%10,000

88%30%

50%

54m

Now ‘digital

natives’

Connected

devices by

2020

UK homes had

smart speakers

in 2018

Employed by

Amazon on

Alexa

UK consumers

bought

something

online in 2018

Avg. prediction

of no. of jobs to

be lost to

automation by

2030

Internet search

completed by

voice by 2020

Active

smartphone

users in UK

by 2022


Setting the context

How could AI benefit…

Retirement Living

and

Sheltered Schemes?


Why easy things are often difficultMoravec’s Paradox

▪ Playing games

▪ Interpreting the stock market

▪ Following processes

▪ Pattern recognition

▪ Writing simple articles

▪ Mathematical & symbolic interpretation

▪ Walking

▪ Manual dexterity

▪ Empathy/social skills

▪ Gut feeling

▪ Conversation

▪ Negotiation

▪ Creativity/innovation

Easy to encode Conscious tasks Hard to encode Unconscious tasks


Setting the context

If AI liberated you from aspects of your job

What other valuable tasks could you do?

Or could you do better?


Setting the contextWhy change?

▪ Lack of a burning platform▪ Fear▪ Job security▪ Who are you doing it for?


Setting the contextWhy change

“It is not the strongest

species that survive

nor the most intelligent,

but the ones who are

most responsive to

change”

Charles Darwin


Future Gazing, Future Shaping

In 2016 we (Altair and 3C) ran a sector wide survey, to assess how organisations are approaching transformation and innovation activities.

In September we re-ran the survey to see how the sector had moved on….


Where is the sector now?


Transactions currently online

40.0%

11.1%

24.4%

13.3%

4.4%2.2% 2.2% 2.2%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

<20% 20% 30% 40% 50% 60% 70% 80% >80%


Transactions aiming to move online

0.0%

7%

0%

4%

22%

0%

22%

30%

15%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

<20% 20% 30% 40% 50% 60% 70% 80% >80%


Time to reach target

4% 4%

19%

33%

26%

15%

0%

5%

10%

15%

20%

25%

30%

35%

<6 months 6-12 months 12-18months

18-24months

24-36months

>36 months


The power of data in housing


The power of data in housing

SECTOR CHALLENGES

• Political unrest

• Financial pressures

• The return of regulation

• Fragmented systems

• Badly integrated information

• Poor quality data


Doing things rightThe importance of compliance, governance and data optimisation

Legal and Compliance Drivers

The legal landscape is changing demanding new

levels of governance ‘with data’.

• Regulation

• Policy

• Compliance

• Data security

• GDPR


Single version of the truth

Housing

Income

Repairs

Estate Mgt

Tenancy Data Cross Agency Data

Policing

Regional

Demographics

Health

Housing Officers

can collect rent

whilst booking

repairs or gas

inspections

Gas Engineers

can report estate

issuesProcesses Governance Policies Standards Tools


What is big data


The value of data

Enables Housing Associations to

harness the value of large data sets for

actionable insight in the moment….

so that they can run their business

smarter, faster and more efficiently Social Impact

Reduce Risks

Operational Efficiency

Customer Experience


Customer experience

Predictive Asset Management

How can we use data to more accurately

predict when things go wrong? Like when a

boiler needs replacing…

Customer Satisfaction

Monitor real-time customer

satisfaction through analysis of

Social Media channels


Operational efficiency

Promotes confidence in

business operations and

decision-making with

insights derived from

complete and accurate

information

• REACTIVE

• PREVENTIVE

• PREDICTIVE

Predict when staff are

likely to leave

Predicting tenancy

lengths

Reducing planned

maintenance costs

Eliminating misdiagnosed

repairs


SOCIAL IMPACT

Given the identity of a social

housing resident, how likely is it that

they will fall into significant arrears

and be either evicted or abandon

their property?

Data helps us to understand the economic

circumstances of tenants, allowing Housing

Associations to react or predict issues quicker

and offer support to vulnerable.


REDUCE RISK

HEALTH & SAFEFTY

How do we do a better job of capturing the mood and concerns

of tenants?


Doing things SMART

Welcome to the world of

IOTThe internet of Things


Results

By capturing richer datasets and real time information,

Flagship has been able to be more proactive, triaging

problems remotely to identify problems before they occur.

For example, data captured from humidity sensors identified

a number of flats with abnormal moisture levels. As a result,

Flagship will be sending surveyors to further assess the

situation. This will allow a repair and maintenance team to

prevent a mold and damp problem from developing, which

can be costly to rectify and also unhealthy for tenants.


Results

Improved

tenant

experience

Reduction in

arrears

Fewer failed

tenant visits

15%-70%

channel shift

improvement

Opitmised

housing

provision

Continuous

improvement


WestwardDigital

TransformationProgramme


Digital Transformation

Approach to Digital Transformation

Programme

Principles9Digital Culture

Customer

• Making a Digital Difference to Our Customer

• Holistic View of the Customer

• Processes through Digital Workflow

People (Workforce)

• Self-Development Through Digital

• Data is Everyone’s Responsibility

• Changing Culture to Digital

Business

• Decision by Data

• Trusted Digital Partners

• Innovation Through Iterations

Decision by Data

Holistic View of the Customer

Data

Everyone's responsibility

Decision by Data

DATA IS

CRITICAL


Summary

Better use of data is

transforming the

sector

There’s a NEED to

do things right

There’s an

OPPORTUNITY to

do things better

There’s the

POTENTIAL to do

things smart


Working together

WarObtaining wealth, advantage and influence through gathering resources

DataObtaining wealth and advantage without invading

CollaborationObtaining greater wealth and advantage by working together


Summary

Protect income stream

Create efficiencies

Help improve lives

Make management easier

Help make the World a happier

place


Good luck and… Be HappyColin Sales, Managing Director

3C Consultants

E: [email protected]: 07810 543 008

T: @3C_consultants_

mailto:[email protected]


Data Security

86%

76%

54%

27%

security of our organisations data has become a greater priority

in the last 2 years

I worry that employees us public social media to communicate

confidential or sensitive information about work

security concerns are the biggest barrier to providing a better

digital experience

have ever lost or had stolen a mobile device(laptop, smartphone,

tablet) they use for workSource: BT/Davies Hickman Partners 2018

Survey of 1,100 Business Executives and 600 IT Decision Makers


Data Security

There were 3.9m cyber crimes reported to the police in 2018

Phishing attacks are the most prevalent and persistent

We have already knowledge of several serious attacks in 2019


Setting the context

All Phishing attacks have this in common:

They are designed to get you to follow an instruction

and click on an item such as a document, link or picture


This is how it works

▪ They find you on social media.

▪ Find out what you are up to (e.g. a Just Giving page)

▪ You receive an email about the subject, often with an attached topical link using an easy to get anonymous email tool

▪ Not uncommon for up to 25% of people to click the link.

▪ Got you!

Potential to be retargeted


The rules

▪ ALWAYS… check the email “from” field

▪ ALWAYS… check for files with a “double extension”

▪ ALWAYS… report suspicious emails to Waterman Solutions

▪ ALWAYS… look at website addresses (URL) in an email

▪ DO NOT… open attachments you don’t recognise particularly if they end .exe .scr .bat .com

▪ DO NOT… respond or reply to spam

▪ BE WARY... How you “unsubscribe”


Passwords

▪ Use the £ sign

▪ Use old car registration numbers

▪ Change 3 letters to reflect the company involved

▪ Use numbers or a special character instead of a letter

Example: P15£tunCih

Police recommend using Password Managers

# S O U T H W E S T 2 0 1 9

EMBRACING THE DIGITAL

AGENDA

Julie HawkerJoint chief executive, Cosmic

Session chaired by Lawrence Blake

Embracing the Digital Agenda

The Challenges and Opportunities

@cosmicjulie

Our services:

Website Design

IT Tech Support

Digital Skills Training

Digital Consultancy

•

•

•

•

Who are we?

Cosmic are an award winning Digital Consultancy that

provides digital skills training and services to

organisations & businesses across the South West.

We are a Social Enterprise, investing our profits in

developing the skills of those most digitally excluded.

What are the key

challenges?

Digital Challenges for the Housing Sector

• Increased resident contact – UC = Increasing costs

• Increased customer expectations

• Leadership – most housing leaders not ready

• Old stack technologies and legacy equipment

• Procurement process and policies

Impact of Universal Credit

• Prior to claiming UC, average arrears of £207 *

• Post UC average arrears of £365

• Debt recovery teams increasing in size

• And more to move to UC by 2023

*Halton Housing 2018

Business imperative of moving to self service

Universal Credit impact – number of transactions increase dramatically

£15 per face to face transaction

10p per self service transaction

So is self-service digital transformation?

4 Solution Areas

Satya identifies four Solution Areas:

Modern workplace

Business applications

Applications and infrastructure

Data and AI.

4 Digital Transformation Pillars

Empower employees

Engage customers

Optimize operations

Transform products

https://blogs.msdn.microsoft.com/jmeier/2017/10/30/satya-nadella-on-digital-transformation-2018/ Microsoft

https://blogs.msdn.microsoft.com/jmeier/2017/10/30/satya-nadella-on-digital-transformation-2018/

Simply put – it’s about People, Processes

and Technology

Notice something is missing

(from plans)

Write a digital

strategy

Recruit a digital

superhero

Freak Out about what

the superhero is

doing

Get rid of so-called

superhero!

Digital Transformation Failure Cycle

Five Big Failure Points

1. Too often technology is seen as a service to the business and an operating cost to be managed rather than a key element of any business transformation strategy

2. Lack of competition and little significant pressure for business-focussed innovation has led to an ecosystem defined by limited product differentiation, walled gardens and inaccessible APIs

3. The barriers to change are too high and opportunities to innovate too few

4. This is little or no understanding of current technology on most boards and senior management teams

5. Data ownership and governance are neglected issues across almost the entire housing sector.

https://www.hact.org.uk/sites/default/files/uploads/Archives/2016/12/HACT%20-%20Is%20Housing%20Really%20Ready%20To%20Go%20Digital.pdf

https://www.hact.org.uk/sites/default/files/uploads/Archives/2016/12/HACT - Is Housing Really Ready To Go Digital.pdf

Three Major Barriers to Change

1. Inadequate visible leadership and accountability for the contribution technology makes to the business success

2. To compensate for lack of internal strategic grip and understanding at Executive and Board

levels, there is an over-reliance on external consultant-led change

3. A lack of understanding of the value and use of data is a major issue at all levels in housing

“The UK housing sector is stuck in a

technology rut. Ubiquitous

connectivity, machine learning

and automation are

transforming businesses across

the economy. But social

landlords remain wedded to

systems which in too many

areas have failed to move on.

“Despite endless digital conferences and events there is little evidence housing providers are

capable of responding to the challenges and opportunities of a transformed technology

landscape. At a time of rapidly falling budgets, tighter finances present the urgent need to reinvent

business models, this represents a major unaddressed threat to the long term success of the sector”

Digital skills of staff

What is digital leadership?

“being a leader in the digital age means

understanding technology as much as you

understand money, HR, or the law.”

If leaders have digital understanding, they can then make

”confident, informed and effective decisions for their

organisation and their users”.

What are the opportunities?

What if we get this right?

• Lower cost base

• Improved internal processes

• Increased visibility of data

• Improved agility

• Better staff engagement

• Closer tenant alignment

• Increase in digital inclusion of tenants and staff = WIN-WIN

Workforce

Development

Strategy for all staff to develop

digital mindset and technology

confidence. Staff engagement and

support.

Systems Integration

Develop single data entry and

reporting mechanisms for

systems. Open architecture.

Digital Leadership

Reframing strategic decision

making in the digital world.

Developing digital mindset

through Board and Exec.

Innovation Strategy

Developing processes to focus on

innovation and environment to

encourage innovation.

Digital Success Quadrant

And what are the

opportunities in the

future?

Blockchain to

support

homelessness?

Internet of Things for independent living?

Chatbots and Customer service

Hour of need support?

A Chatbot is software that replicates real-life conversation to

deliver information to users and Ally uses playful language and

engaging content to relay information in an accessible way, 24

hours a day.

1. Sustaining tenancies: By using Ally, housing associations can

mitigate the risk of their tenants falling into arrears and

being evicted.

2. Improve efficiency: Ally helps people get simple advice

without having to call customer hotlines or talk to support

workers.

3. Focus on the complex: By freeing up precious staff time,

Ally allows staff to spend more of their day focusing on

complex issues.

Housing & Digital Opportunities

Digital transformation and adapting to new technology sits at the heart of any customer-facing organisation and housing providers are no different.

As if to underline this, a recent survey by the Municipal Journal and BT found that 83% of respondents regarded digital transformation as among their top five high priorities within their organisation

• using new technology such as voice-control systems and 21st century equipment to promote independent living

• reinventing traditional paper-based tenancies for the digital age

• using customer data to segment and customise services

• data and IT security in the public sector

• using technology to achieve flexible, more mobile and agile working

• undertaking multi-million pound overhauls of existing IT systems

• working with partners to encourage digital take-up in their communities

https://www.northern-consortium.org.uk/event/digital-innovation-2018/

https://www.northern-consortium.org.uk/event/digital-innovation-2018/

So we need to be coders?

This doesn’t mean that we all need to be technologists and coders.

• Integrating digital into the centre of the organisation, not a separate department

• Understand the impact of the digital world on our customers

• Horizon scan and invest in the right products at the right time

• Recognise skills gap and transforming staff

• Creating new ways of working

Being a digital

leader is not a role,

it's a competency.

Thank you

www.cosmic.org.uk

@cosmicjulie

[email protected]

# S O U T H W E S T 2 0 1 9

TAKING ADVANTAGE OF THE REMOVAL

OF THE HOUSING REVENUE ACCOUNT

BORROWING CAP

Lawrence BlakeService lead, housing tenancy services, Exeter City Council

Session chaired by Paul Butterworth

91

Taking Advantage of the Removal of the

Housing Revenue Account Borrowing Cap

Exeter City Council Housing Position

• 5000 stock

• Started building again in 2009

• Focus on infill sites

• Modest new build (67 units)

• Passive House, Healthy, Climate Ready

92

93

• Rent cap

• Set up Development

Company

• Large HRA bid

(£100m+ July 2018)

• Cap lifted

Debt Cap£57.882m (£56.884m re self-financing and £998k re Council Own Build (Wave 1)

Rent loss – 1% rent cuts£7.9m over 4 year period

Income (2016/17)Dwelling rents £19.547mNon dwelling rents £0.521mCharges for services and facilities £0.794m

£20.862m

Exeter City Council Housing

94

• Land

• Finance

• Planning

• Capacity

• Right to Buy

• Members aspirations

• Borrowing Cap abolished

• Replaced rent reduction with rents up by CPI +1% from 2020

• Considered greater flexibility for the use of Right to Buy receipts

• Abolished High Value Assets legislation

Challenges & Opportunities

Finance

95

• Need to borrow prudentially

• RTB receipts

• Homes England grant

• Capacity / resources / expertise

• Joint Ventures

• Development Company RP

Surrender Receipts

• Constraints in match funding

• Inability to count expenditure which is part funded by HCA

• 3 year time restriction

• Unable to pass on to a body in which the authority has a

controlling interest

• Discouraged from counting Section 106 expenditure

• Gift money to HA’s rather than surrender

96

One-for-One Replacement

• Signed up to agreement

from 1st April 2012

• 86 replacement

properties, but 187 RTB

sales to date

97

To date £'000

Retained RTB Receipts 30% 6,747

Required match funding 70% 15,742

Total Required Spend by 30 Sept 2020 100% 22,489

Actual spend to 2016/17 6,934

Planned spend 2017/18 to 2020/21 11,513

Total Planned Spend 18,447

Investment Shortfall 4,042

Resident/Tenant Engagement

• Better Homes for local people document

• Committed to resident involvement and recognise the positive effect it plays

in shaping services and driving service improvement.

• Value all contributions made and have developed a suite of involvement

methods to enable engagement across our customer base.

• Developed a social media presence in order to increase accessibility to

engagement and to synchronise our services with the wider national ‘digital

shift’ context.

98

Who Builds What – HRA vs. DevCo

• Criteria matrix and weighting

• Who is best suited to build

• Quick wins

• Strategic approach

• Joint Ventures

• S106 added value

• Is it just about numbers?

99

Housing Need (May 2019)

Band A Band B Band C Band D & E Total

1 Bed 2 183 152 948 1285

2 Bed 115 189 152 456

3 Bed 1 51 194 44 290

4 Bed 27 58 11 96

5 Bed 13 3 2 18

6 & 7 Bed 4 1 1 6

Total 3 393 597 1158 2151

100

• 2151 Households in Housing Need – 60% 1 bed housing need and 21% 2 bed housing need

Future Housing Need

• Greater Exeter Strategic Plan (GESP) identifies a growth need of

627 homes per annum across ECC area

• GESP estimates affordable housing need as between 47-50%

per annum (up to 314 homes a year)

• Pipeline of 2,478 new homes under development

• Future Pipeline of 1,736 new homes with outline planning

• Demand is still outstripping supply

• Liveable Exeter Vision (12,000 homes over 20 years)

101

Housing Need, Delivery & Shortfall(market and affordable)

• Existing Need = 1,700

• Shortfall to 2040 = 5,500 (GESP)

• Delivery required to 2040 = 8,000 (6,053 affordable homes &

1,065 smaller market homes & specialist housing)

• Delivery would need to be increased by 364 homes per year

(double ‘normal’ delivery)

102

Affordable Housing Delivery

• 1189 affordable homes delivered (10 years)

• 54 fully wheelchair accessible

• 67 ECC new build (53 more currently on site)

• 39 S106 purchased by ECC (23 full wheelchair)

– £24k each (average) £937k in total

– £9m market value

• 23 S106 negotiated by ECC (9 full wheelchair)

103

Delivery Challenges

• Land Availability for new homes

• Market Place Capacity & Capability

• Statutory Resources for Planning Consents

• Viability

• Infrastructure

• Employment

104

Use of Right to Buy Receipts

• Using all predicted RTB (as 30%) results in 295 new

build units over 10 years

– £50m total investment (30% RTB / 70% borrowing)

– Doesn’t keep pace with RTB

• Ambition closer to 500 units over 10 years

– £85m total investment (18% RTB / 82% borrowing)

105

Exeter City Council Solutions

• Bring forward public sector land for development

• Formation of Council Owned Development Company

• Partnership / Alignment with Exeter City Futures, Exeter

University and Met Office

• Explore off site and custom housing

• Seek funding opportunities to pursue delivery options

106

HRA Solutions

• Access to additional money through borrowing cap lift

• Strategic approach to development on Council land

• New Housing Needs survey commissioned

• Breaking down Silo’s working with Leisure and Corporate Property

• Site identification

• Estate regeneration opportunities

• Active Asset Management

• Stock viability

107

HRA Solutions

• Members want numbers and quality

• Passivhaus / Building Biology / Climate Ready – longer term view

– Sample shows utility bills total 50% less in ECC new build

• Skills and capacity

• Work with Exeter City Living - Teckel company

• S106 purchases

• Additionality

• HE Grant108

HRA Solutions

• Maximising RTB receipts (deliver 30 units per year)

• Need 50 per year to replace RTB

• Not just new build – refurbishment and adding floors etc

• Open market land

• Quick wins

• Develop ambitious long term programme – minimum 500 units

over 10 years

• Aligning our development to wider housing ambitions

109

Questions?

Lawrence Blake

Service Lead - Housing

Tenancy Services

01392 265691

[email protected]

Gary Stenning

Asset Management Lead

01392 265870

[email protected]



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