As HDLive proves, connected Hull is making it happen

Is Hull connected? Is it a buzzing place? Can it counter the increasing concentration of economic activity in and around London?

These were some of the questions posed by BBC Radio 4 and Dragons’ Den presenter Evan Davis as he brought his analysis of the UK’s economic challenges home to an audience in Hull. 

Speaking at the Hull Digital (HDLive) conference, he closed in from a helicopter view of the world economy and the UK’s place in an increasingly global marketplace to the prospects of Hull finding a prosperous future.

The key, he said, was “connectivity”. Successful places would be those with “physical, virtual and cultural connectivity” - places where businesses and business networks link to and learn from others.

A vibrant cultural life was vital, said Davis, to “sow the seeds of economic renaissance”. Cities had to make themselves attractive for entrepreneurs and employers to live in, as well as work, so that they say: “This is a buzzing place. I’ll set up a business here”.

Evan Davis: Connectivity will be the key
characteristic of prosperous cities

Davis had words of encouragement for Hull. From what he had learned, the city had a chance. It had a “great broadband network and a growing cultural sector”. It had a thriving university and a student population that adds vibrancy to life in the city.

After those fundamentals, it was about the “mindset and view of the world” of the city’s business community, he said. “That’s where you come in”, Davis told his audience.

So, if it’s about connectivity, culture and attitude, the event that brought Davis to Hull augurs well. HDLive is an extraordinary home-grown success, bringing world-class technology experts to a city said to have the fastest-growing digital community outside London.

HDLive is the epitome of connectivity. It has grown out of Hull Digital, a connected community of digital start-ups and SMEs.  HDLive saw 250 people gather to link and learn. The event was a tweetfest as, throughout the day, members of the audience took to Twitter and blogging platforms to share their views and observations with connections inside and outside the lecture theatre at the University of Hull Business School.

During breaks, the air was buzzing with excited conversations as businesses forged and reinforced mutually beneficial connections. Many of those conversations set HD Live in the context of a city determined to challenge false perceptions of its cultural life and economic prospects.

Davis talked about the UK’s economy being at a crossroads. Manufacturing had been transferred abroad, as the UK focused on financial and commercial services. But, in the wake of the global crash, Britain was left with an economy that was “not broad enough to pay the bills”, said Davis. It was too dependent on service industries and too “clustered” in London and the South East.

So, he was asked, what would be the impact on Hull of Siemens investing in manufacturing - a wind turbine factory - in the city? Davis said it partly depended on the degree of commitment by Siemens to local employment and skills, but it would certainly raise the city’s game and build momentum “in a world of spin-off benefits”. However, Davis cautioned against relying totally on inward investment. “You have to make it happen,” he said.

So is Hull making it happen? It’s easy to say ‘no’ when news of Comet going into administration brought the toll of local jobs placed under threat to almost 1,000 in just two weeks. However, the mood at HDLive was far from downbeat.

Event organiser Jon Moss, founder of Hull Digital, said the digital sector was a source of opportunity and optimism for the region. His vision was for Hull to become “a hub for digital innovation, enterprise and technology” and HDLive showed what could be achieved.

Moss pointed to plans by developer Wykeland, a HDLive sponsor, for a Centre for Digital Innovation (C4Di) near Hull’s Fruit Market, which would act as a focus and catalyst for digital entrepreneurship. He also highlighted the Digital Estuary website which profiles scores of digital and technology businesses around the Humber and said telecommunications provider KC was rolling out the fastest broadband network in the country, which would act as a magnet for investment, encourage start-ups and enable existing businesses to grow.

Kevin Walsh, Chief Executive of KC, another HDLive sponsor, highlighted the digital sector, which is growing at 4% per cent annually despite the weak UK economy, as a major opportunity for the region.

He said KC’s rollout of its Lightstream super-fast fibre network was providing local businesses with the UK’s best broadband and it had established a £600,000 loans fund, KC Invest, to support digital start-ups. Both were stimulating enterprise and providing a platform for business growth.

Walsh read from a recent press report in which Manchester boasted about having 50 miles of super-fast fibre broadband and said this paled in comparison with Hull: “We’ve laid 300 miles and we’re still going”. He said HDLive was about inspiring ideas that became businesses and told delegates: “We’re betting KC’s future on your big ideas”.

Of course, many of those big ideas will start as small businesses, but a theme of the conference was how the power of digital technology had transformed the rules of business. “Today, the smallest amount of capital can help to create a global brand,” said Walsh.

HDLive certainly provided plenty of food for thought and prompts for action, from a series of inspiring speakers. They included the world’s leading mobile digital analyst, Horace Dediu; Roan Lavery, founder of Free Agent, one of the world’s most popular online accounting apps; and Simon Mottram, who has employed the power of digital platforms and communications to build a successful luxury cycling wear brand. On another grim day for Hull’s economy, it was so heartening and motivating.

As Evan Davis explained so expertly, the economy is changing rapidly, in part because of the seismic impact of technology. Britain is in need of new economic models, he said. It’s clear that the same applies to Hull. As traditional industries and employers, such as Seven Seas, disappear, new sources of employment have to be found.

The silver lining is that Hull is becoming ever more connected - the key requirement for economic prosperity identified by Davis - and has opportunities that are about the future rather than the past.

It is becoming better connected to its neighbouring communities across the Humber, assisted by the creation of the Humber Local Enterprise Partnership, improved cross-estuary local authority and business collaboration, and the slashing of the Humber Bridge tolls.

Hull also has a once-in-a-lifetime opportunity to replace declining industries of the past with a vital industry of the future, renewable energy, in all in its forms - offshore wind, tidal power, biomass and biofuels. Everything possible is being done locally to seal the Siemens deal, which will be the catalyst for a wave of green energy investments in the Humber.

Now the Government must provide the necessary long-term policy certainty and financial arrangements to encourage global businesses to commit to long-term investments totalling billions of pounds. Hull and the Humber are crying out for ministers to enable a new growth industry for UK Plc to emerge, flourish and create long-term jobs for thousands of local people.

Finally, as HD Live demonstrated, Hull has a vibrant and ambitious community of digital and technology businesses eager to seize opportunities for collaboration and growth, building on rapidly-developing infrastructure and connected networks. They’re certainly responding to Evan Davis’ challenge to make it happen.

Critical business decisions: Are you looking through the wrong lens?

Every business leader makes decisions on a daily basis, but what criteria are used to influence those judgements? And what are the factors that make the difference between success and failure of the actions that follow?

Clearly these are critical issues for any business and they were addressed at an excellent seminar staged jointly by the Hull University Business School and the Institute of Directors on “decision-making capabilities for competitive advantage” - the latest in a series of “Business Bites” events held at the business school.

The event featured two viewpoints - from the worlds of business and academia. The speakers had not consulted each other in advance, but their presentations dovetailed. The linking theme was that, in order to make successful, critical decisions, organisations had to be able to look at themselves from external and alternative perspectives.

Kevin Walsh, Chief Executive of Hull-based telecommunications provider KC, talked about how KC had reinvented its brand and culture after looking at itself from the viewpoint of its customers, while Prof Alberto Franco of the business school observed that corporate decisions were too often “framed” by fixed perspectives.


KC Chief Executive Kevin Walsh

Mr Walsh said KC underwent a fundamental culture change after conducting extensive customer research in 2009. The results were a wake-up call - it was evident that KC did not have a “winning brand” and needed a new mission and purpose, “a new flag to rally around,” he said. It changed “from an engineering-led business to a brand and marketing-led one”.

The brand reinvention was one of two examples Mr Walsh gave of critical business decisions - the other being KC’s investment of millions of pounds rolling out an industry-leading fibre broadband network. For both, he used his own “RICE” - Reputation, Implementation, Cash and Energy - decision-making checklist to evaluate the likely positive or negative consequences of the decision in terms of reputational impact, implementation challenges, cash implications and the “corporate energy” within the business.

The latter factor was vital, said Mr Walsh. KC identified 35 “brand trustees” to overcome internal objections to the culture change, with each challenged to “enrol” a further 10 colleagues to rally behind the new brand. Because of this, it became “not a dictat from on-high, but co-invented within the business” and achieved “emotional buy-in”. Giving spectacles to staff across the company reinforced the need to “see the business through the customer’s lens,” he said.

The brand transformation succeeded because of it generated “corporate energy” within the business, with colleagues embracing the “proud to be part of local life” brand statement and a major focus on communication sustaining the culture change. It convinced Mr Walsh that businesses with the greatest corporate energy will be those that prevail in an ever more competitive and rapidly-changing business environment.

The decision to invest in KC’s Lightstream fibre network was another example of what Mr Walsh described as the 5% of decisions that really do matter, because they leave a legacy and have an impact beyond the business and upon all stakeholders.

The decision was about “anticipating customer need, for competitive advantage”, recognising the rocketing usage of digital devices and demand by residential and business Internet users for ever-faster content and data transfer.

In terms of cash it was expensive because of the substantial capital costs of laying new fibre connections. It was also commercially and technically difficult to implement. But Mr Walsh was sure it would be hugely positive for KC’s reputation and would once again generate positive energy within the business. Despite the challenges, it had proven to be “the most successful product or service launch in the history of the business,” he said.

Those decisions illustrated that KC is one business that has avoided what Prof Franco described as “strategic inertia”, when traditional ways of operating - which may once have been successful - become embedded in an organisation and prevent it responding to changing market conditions, or delay that response.

He described how decisions are often made within “frames” - “limited perspectives that influence our perceptions of what we see or expect to see”. To avoid this, he said, it was important that businesses stayed close to their customers and found ways to take on board their perspectives, as well as being open to outside views from consultants and other third parties.

Both speakers acknowledged that critical decision-making was a complex process. Indeed, Mr Walsh said that “gut instinct”, based on experience and intuition, was also important. But the key question for any business leader must be: Do you make decisions based only on what you and your senior colleagues see? If so, could it be that you’re looking at the issue through the wrong lens?

'Lightning-fast' broadband and knowledge jobs bring Hull's digital city dream closer to reality

Hull - the digital city. It’s a concept that has been talked about for years without ever seeming to move significantly closer to reality, but maybe that is finally about to change.

Recently, I’ve detected some very exciting digital developments which could be profoundly important for the prosperity of the city and wider region, transforming employment opportunities and the economic landscape. All the talk at business meetings may be about Siemens and renewables, but something else is stirring which some have claimed may be just as significant.

The digital city concept had at its core the presence of a unique, local telecoms provider in KC and the availability of a network ripe for development to provide the infrastructure - or so-called plumbing - for major developments in education and business.

That concept gained credibility from the late 1990s as a result of the launch and development of Kingston Interactive Television (KIT), KC’s ground-breaking internet television service delivering video on demand and TV streaming via broadband. It was a truly pioneering service which was hugely ambitious in both its technology and objectives. In truth, it was way ahead of its time.

KIT was wound up in 2006 because KC could no longer justify a huge investment, which had come too early for commercial viability. But it had some significant outcomes, including that it was a key reason why the BBC chose Hull as the base for a major regional centre and it was used by the corporation as the testbed for a number of innovative interactive services, which informed later developments such as Freeview.

Now KC is again leading the way in developing digital infrastructure. This time, the company has embarked upon on a programme to install “lightning-fast” broadband across its East Yorkshire network. It’s early days, but the new service, KC LIghtstream, is delivering remarkable results and winning customers fast.

After relatively small-scale trials in Woodmansey, near Beverley, and Hull’s Great Thornton Street Estate, KC has begun a major rollout, starting in Beverley, and now has more than 800 subscribers for a service that guarantees broadband download speeds of 100 megabits per second (mbps), which is four times faster than the Government’s definition of “super-fast” broadband.

Just last week Beverley was declared the broadband capital of the UK, with the fastest speeds in the country. Speed test site Netindex showed Beverley as the fastest UK broadband location, with an average download speed of 43 mbps – nearly six times the UK average - as a result of the KC Lightstream performance.

The remarkable speeds are delivered because the data travels down fibre-optic cables fed through to customers’ homes, replacing traditional copper connections. KC is stealing a march on other Internet Service Providers (ISPs), such as BT, by installing Fibre To The Home (FTTH), rather than Fibre To The Cabinet (FTTC) - a connection box in the street. Elsewhere in the UK, connections are slowed down by copper cables for the last part of the data journey. In Lightstream premises, speeds are not constrained and the technology is future-proof, enabling acceleration of download speeds as demand for digital data and content grows.

The results seen already are impressive - users of the new service can download music albums in just two seconds, hour-long television programmes in 31 seconds and high-definition films within two minutes. It’s truly a revolution in accessing information and entertainment in homes which now frequently have multiple digital devices  being used at the same time.

But this new network is potentially even more significant in terms of its power to enable the development of East Yorkshire’s emerging digital sector. It has been interesting to note Hull’s growing credentials in this sector - in website and app development, gaming, social media and other disciplines. Indeed, that capability and credibility will be showcased this weekend (17th & 18th March) at Platform 2012, an event at the University of Hull focused on the huge gaming industry.

Quietly, Hull is gaining ground as a centre of knowledge jobs, with technology a key element, supported by high-quality educational establishments, such as the university and Hull College. Also important in this picture is the Hull Digital community of entrepreneurs and developers, which plans its own significant event, HD LIve, at the university on 1st November this year.

Factors are coming together to accelerate this welcome development of technology-based and enabled jobs in the knowledge economy - jobs that will be vital to achieve a re-balancing from public to private sector and blue to white collar employment.

KC’s commercial and financial director Sean Royce talked about this change recently when setting out the benefits for businesses of the Lightstream rollout.  The huge boost to broadband capability will encourage start-ups and SMEs focused on activities such as online retailing, app development and gaming.

Mr Royce pointed out that digital industries already generate £130 billion for the UK economy - 10 per cent of gross added value - and employ six per cent of the workforce. The sector also continues to grow, despite the economic climate. It’s a trend the Government recognises and wants to encourage. It plans to commit £780 million to support the development of super-fast broadband and mobile provision across the UK  to help to deliver a world-class digital infrastructure. Estimates are that the investments by Government and the private sector could create 600,000 new jobs and pump £18 million into the UK economy.

One local digital entrepreneur, John Connolly, wrote in a recent blog on the Hull Digital site that the rapid development of the local broadband network will enable businesses to work and communicate in new, faster, more efficient and effective ways, including through home and remote working. His view was that the Lightstream network would be “the backbone of business and education in the city for years to come”, enabling the development of exciting new enterprises and ways of learning.

And, although large-scale employers, such as Smith & Nephew, Reckitt Benckiser and, indeed, KC,  are hugely important to the East Yorkshire economy, SMEs are the real backbone of UK Plc, providing 60 per cent of private sector jobs.

So, while the headline news is how Siemens, the burgeoning offshore wind industry and other forms of renewable energy will bring new prosperity to Hull and the Humber, it’s not the only story of economic potential and job creation. No doubt renewables will continue to hog the headlines, but the development of digital infrastructure, businesses and jobs may be just as vital over the long term.

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Forget Silicon Valley - welcome to the Humber digital estuary

Hull and the Knowledge Economy