Ian Akeroyd Virgin Media Business 10th October 2014 Technology and Innovation: Driving Digital Transformation in Public Sector Ian Akeroyd Virgin Media Business 10th October 2014

Agenda Background and challenges Our view of the savvy tech consumer PSN: an enabler for change Questions

Resource Prioritisation Organisational Change Today’s business challenges Anytime, Anywhere ‘More for less’ 1: Budget Constraints v Service Demands – More for Less 2: Pressure for consistent care anywhere, anytime – post code lottery 3: Prioritisation of Resources 4: Organisational Change – CCG/CSU Transition - complete restructuring of commissioning and service delivery organisations and support services Resource Prioritisation Organisational Change

Government ICT Strategy Today’s ICT challenges Estate change & rationalisation Government ICT Strategy 1: Estate Change and Rationalisation, including ICT Efficiencies and Transformation critical to implementing new structures and achieving improved service/lower cost – similar to Cable Industry consolidation? 2: Technology to support the challenge – Government ICT Strategy 3: The need for Agility – remove barriers to sharing of resources incl information. ICT seen as critical to efficiency and innovation. Shared Services - HR, Payroll, Marketing, PR, Finance etc:- Enabled by Systems and Process Harmonisation Requiring Culture Change – Virgin Values Supported by Collaboration 4: Seeing ICT as a Value Stream – Save to invest (Vision and Planning). Save to invest is about driving cost savings across Public Sector organisations, yet doing it in a way which helps strengthen the capability to transform in the longer term. We’ve seen huge value being realised by the Public Sector running collaborative procurements within regions or across communities of interest. The most immediate benefits (and those that are easiest to achieve) take the form of cost savings as a result of aggregating requirements and leveraging the total spend available. But the longer term prize is the common infrastructure and service wrap which enables the sharing of services and real estate, broader collaboration, and more flexible ways of working. Need for Agility Save to invest

Background and Drivers for Change in Public Sector FOCUS AREAS IMPLICATIONS BUDGET CUTS Significant budget challenges across the East Midlands over the next five years. Further staff reductions – Need to protect front line services therefore focus on back-office. Focus on efficiency savings. Challenge around estates rationalisation and implications on services. COLLABORATION Meeting the Public Health Agenda. Co-location of Multi agency staff enabling estates rationalisation Sharing information to drive better outcomes. Sharing services i.e. back office resources and systems. AGILITY Staff agility and flexibility. Access to services regardless of location and function. Improved work-life balance. Front Line staff needing access to Core Council Services in the field to deliver more with less. CITIZEN Cuts to Local Services – rationalisation of subsidised local bus services Focus on channel shift – drive services on-line. Improved access to the Internet for Rural Communities.

Virgin Media- inside the home of the citizen Connecting millions of UK homes to a next generation cable network that passes half the country Over 4 million broadband customers, speeds of up to 120Mb 4 million connected TV customers 3 million mobile customers Providing Business services to the public and private sector, including backhaul for major MNOs Now part of Liberty Global – Largest International cable company with operations in 14 countries

Engaging users in the home Virgin Media interact with millions of our customers every day 12.6 Million Homes Passed Broadband 4.3 Million Subscribers Video 3.7m TV Subscribers Voice & Mobile 3m + Mobile Subscribers I click Alex : With 12 Million homes passed 3.8 million TV subscribers, 4.2 broadband and 1.7 million contract mobiles our service's attract a lot of eyeballs! At Virgin we’ve also got a great history of innovation: We where the first in the UK to launch 3DV Video on demand Broadband speeds of up to 100Mbps, Ofcom rated us the UK’s fastest in there tests Neil: It can get confusing…so our platform in increasingly converged. TV on your ipad, Telephone on your PC, PC’s on TVs… it doesn’t stop! There’s a lot of content out there and we’re trying to make it simpler. alex Convergence 7

Delivering services to screens Innovations Investigating TiVo “personalisation” and local community initiatives 8

Meeting the challenges.. Neil 9

Gadgets are gaining ground 10

Today’s “connected” home 11

Convergence of services Security Status = House Empty Energy Management = Heat Down Health Status = Blood Pressure High Entertainment Status = Play Warning Video 12

Convergence of services 13

From rules to …. 14

Smart home learning WOW Neil! Let’s tidy up your house a a bit… Entertainment: we do that today but the walls are really coming down in this space. Soon over 70% of all internet traffic will be video and todays kids are already ditching email and messaging in favor of video calling. Health: This years Consumer Electronics Show was all about consumer health featuring a new wave of devices that are bordering on Star trek handheld tricorder and are priced like todays home digital thermometers (Scanadu Scout) Home: Most of todays alarm systems are fairly dub, but lets make the home a smarter place to live and connect the alarm up to the internet and enable some more automation Energy: Smart meters will be almost fully rolled out by 2019, with more micro generation and the increasing costs of fuel it’s not just the green agenda but the good ecoomic sense to make the most of your energy these days! And of cause everything is connected and delivered to all of the screens in the house 15

Smart body learning Temperature monitor Heart-rate monitor Blood Pressure Monitor Pulse Oximeter Establishing our credentials: Alex : With 12 Million homes passed 3.8 million TV subscribers, 4.2 broadband and 1.7 million contract mobiles our service's attract a lot of eyeballs! At Virgin we’ve also got a great history of innovation: We where the first in the UK to launch 3DV Video on demand Broadband speeds of up to 100Mbps, Ofcom rated us the UK’s fastest in there tests Neil: It can get confusing…so our platform in increasingly converged. TV on your ipad, Telephone on your PC, PC’s on TVs… it doesn’t stop! There’s a lot of content out there and we’re trying to make it simpler. alex Accelerometer 16

Sounds too futuristic? - it’s already happening… It’s all about bringing technology closer to people, making it accessible to all. Enabling ‘anytime, anywhere care’ securely, and cost effectively whether it be in hospitals,schools or homes. ICT is evolving into a Value Stream requiring vision, skill and determination. The outputs from this aren’t just savings, it’s being able to change people’s lives. Conclusion: Evolving Requirements - Technology is changing with accelerating pace, both in the office and in the home - Keep Up It’s all about bringing together advanced converged networking in the WAN and LAN with expert transition, and bringing it into the home and in innovative powerful ways

Is now the right time? Amara's law – "We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run." Alex Inflection point Part of what we asses in innovations is when is the right point in maturity to get involved in any technology Garner have a really useful tool for helping to position I think I hit my personal trough of disillusionment when I owned my first smart phone, it just didn’t live up to the hype. My new Samsung S$ on the other hand tells me it’s my life companion and in many ways I think it’s right Plotting teleheath on this graph is complex but that’s largely because it’s such a diverse subject. Health and Fitness consumer electronics seem to be nearing a plateau of productivity, even my Samsung can calculate how many steps I take in a day and has it’s own pulse and weight accessories. Gartners Hype Cycle 18

Public Services Network: An enabler for change Healthcare provider At home Public Services Network Schools On the move 19

Who could use a PSN to drive change? Town and Parish Councils within the boundary of Partner organisations Education establishments within the boundary of Partner organisations who are the subject of public procurement and listed on EduBase (Department of Education website http://www.education.gov.uk/edubase/) Local Authority companies within the boundary of Partner organisations. Central Government Departments, Executive Agencies and NDPBs within the boundary of Partner organisations NHS Bodies England including Acute Trusts, GP’s, Pharmacies, Primary Care trusts, Care Trusts, NHS Hospital Trusts, Foundation Trusts, Strategic Health Authorities, Mental Health Trusts, Special Health Authorities, Community Health Councils, Local Health Boards, NHS Trusts, including Ambulance Trusts within the boundary of Partner organisations. Hospices within the boundary of Partner organisations. Registered Social Landlords (Housing Associations) within the boundary of Partner organisations Third Sector and Charities within the boundary of Partner organisations Citizens Advice within the boundary of Partner organisations Police Services within the boundary of Partner organisations Fire and Rescue Services within the boundary of Partner organisations

An East Midlands Collaborative Infrastructure EMPSN Partners connect to one Physical Network logically separated by Secure VRF (Virtual Route forwarding) technology Interoperability is at the heart of our Network. The VMB PSN will enable Collaboration between EMPSN partners or across the National PSN as a standard feature. EMPSN Virgin Media Business MPLS / IPVPN Service CAS ( T ) 2 - 4 South POC North POC 10 GB NNI GCN POI GCN element Virgin Media Business Deed of Undertaking DoU Virgin Media _ 001 DNSP element Code of Inter Connection CoICo Other DNSPs & PSNSP Level 3 BT Education Partner No PSN Access 3rd Sector Police CoCo Health Local Gov Logical Connection to the PSN VPN Physical Connection to the EMPSN Virgin Media DNSP EMPSN User VPNs N3/Health GCF Services Voda/CW Central Police Apps IL3 N3 IL2 IL0 IL0

Technology enabling change on the Front Line Remote Access Microsoft Lync SIP / TDM EMPSN IPVPN DNSP PSTN UK National Voice Network Video Security Services Cloud Apps Internet Single IPVPN Link premise services National PSN UK Cellular FMC 1 10 gbps . Mobile Partner access to Cloud GCSX Aggregated PSN Core connectivity N 3 CJX GCloud Wireless Cisco HCS

Target Outcomes Deliver More.. Spend Less.. More Flexible services New channels for services across Government Open up organisational boundaries Public sector interoperability, Common standards, common security Open Marketplace Technology to deliver change Simpler and more efficient procurement Reduce procurement overheads Lower integration costs Reduced operating costs Less duplication of ICT Increased staff productivity Improve organisation and cross government collaboration Reduce estates

Questions?