Intellect

Cybersecurity and the digital Dark Ages

2009-07-02T12:16:19+01:00

Following last week’s publication of a UK national Cyber Security Strategy, the FT devoted a leader column to “Cyber security risk” highlighting the growing threat of cyber warfare to national security and resilience and its future role in conflict.

This is a subject close to the technology industry’s heart, and the recent publication of a national Cyber Security Strategy has now also focused Government’s attention on what many believe is the newest theatre of war. Whilst we at Russell Square therefore applaud the FT’s interest in the subject, I cannot help but disagree with their fundamental conclusion – that developed economies (including the UK) are better placed to withstand the collapse or compromise of our digital networks than less developed equivalents.

I’d posit that in truth the opposite is true - the UK is one of the world’s most technology dependent societies, and the impacts for Government, business and citizens of even part-failure of our “digital backbone” would be unprecedented.

As the 2003 power blackout on the east coast of the United States (which was itself, some say, caused by overenthusiastic Chinese cyberagents) proved, the inability to use ICT sends most developed world businesses and many vital public services – which depend solely on the Cyber domain for trade, communication and finance - back to the digital Dark Ages.

This contrasts sharply with less technology or service-based economies, where networks are both more limited and less integrated into business processes, and agricultural or manual industries could largely continue to function – Britain’s banking sector or creative industries could not.

We know that both state and non-state adversaries are using the Cyber domain to attack national infrastructure and our open and globalised society’s dependence on its digital backbone makes us an extremely vulnerable target. Intellect therefore welcomes the advent of the Cyber Security Strategy, and looks forward to helping Government use industry’s expertise, experience and innovation to aid its implementation.

By Joel Grundy, Defence and Security Programme Manager

Reconnecting 1972

2009-06-25T14:26:58+01:00

I’ve always wondered why we’ve not been back to the moon since the Apollo 17 mission in 1972. A mixture of astronomical costs – in every sense of the word - and ebbing of the Cold War no doubt played a large part in dulling this ambition. The result today is a generation of people for whom space means little more than a decaying space station, a powerful telescope and Battlestar Galactica (if their inner geek will admit it). But the reality is that there’s a lot more going on high above our heads than just floating unshaved cosmonauts and buzz-cutted yanks, and today’s launch of the new Space Innovation and Growth Team (IGT) aims to get the UK excited about space again.

Space technologies have a bigger impact on our lives than we might think and they are playing an increasingly important role in delivering public and private sector priorities. Global communications, both military and civilian, rely on a network of satellites and ground support equipment to deliver data. We are seeing an increase in the number of people living in rural areas taking advantage of satellite broadband services, indeed a leading British company is preparing to launch a new satellite to keep up with the demand. And the value of space technologies to essential climate monitoring need not be stressed.

Space also has enormous potential to deliver government priorities in the areas of transport, healthcare, climate change, creative industries, security and the recently announced universal broadband service commitment. Space IGT should provide a strategy to guide government’s adoption of space technologies in these areas.

The UK already leads the world in satellite manufacturing and space applications. The space sector is worth around £7 billion to the economy and employs nearly 70,000 people. It is a rapidly growing global market worth £250 billion in 2008 and is set to double in value by 2015. Keeping our seat at this lucrative table means jobs and growth for the UK and this should clearly be a top priority for both government and industry. This work begins now for the Space IGT and conveying some of that old space race excitement and education to the public will play an important part in this journey.

By Daniel Smyth, Press and Public Affairs Executive.

Why all the fuss with Digital Britain?

2009-06-17T17:00:47+01:00

I’ve been somewhat perplexed by the reaction of some sections of the media towards Digital Britain this morning. From, ‘More sketch than blueprint’, to ‘The show goes on’, to the frankly inaccurate ‘The digital picture is still blurred’, many commentators have failed to appreciate the big picture.

Undoubtedly, with an agenda as big and ambitious as Digital Britain there was always going to be disappointment for some. However, I’m genuinely surprised that certain sections of the media have chosen to criticise Lord Carter’s framework to deliver next generation access.

Much has been made of £6 per year levy to pay for the ‘final third’ of households who live in areas that are not economically viable for the roll-out of commercial broadband. It seems to me that the spectre of a new tax has overshadowed what is essentially a very workable resolution to this lingering and complicated problem.

The solution offered is both nimble and elegant, and more importantly the only framework on the table. Around the world other countries have sunk in billions of public funds into building their networks, or remained locked in indecision. It is vitally important that we do not shut out a generation of innovators and entrepreneurs from NGA because they live in areas which are at this time, economically unviable to commercial operators.

A recent ITIF/LSE study suggested up to 280,500 jobs could be created or retained by next generation broadband networks. The report also talks about the networked effects, meaning the benefits are more than just quicker download speeds. Consider the boost to jobs and the economy from the industries that will be stimulated by rise of the smart home – only enabled through NGA.

On a separate point the commitment to universal service means more for the future of public services than anything else. The ambition to connect every home with at least 2mb broadband by 2012 is certainly laudable, but it is likely to have the biggest impact on the way public services are delivered.

Online delivery of public services could offer convenience and flexibility to individual citizens. Perhaps equally crucially in these straitened times, a switchover could save public money. That is partly because of services such as ‘telepresence’ for healthcare, which save time. But also completing a switch-over, means switching off additional or redundant means of contact or services – do we really need to consume reams of paper to fill in our tax returns when we can do this online? Too often the public services simply layer new means of delivery over the old ones, adding to the costs. The universal service commitment is the indispensible first step in this direction towards online delivery of public services.

Delivery of the Digital Britain vision will be made piecemeal and not overnight. A mixture of regulation, incentives and the levy will ensure the whole of the UK benefits from a 21^st digital infrastructure, not just those lucky ‘hot spot’ dwellers. No doubt there is more work to be done, but in his short period of time as a Minister, Lord Carter has laid down a definitive marker and given the UK a framework going forward that can guide it into the digital age.

By Daniel Smyth, Press and Public Affairs Executive.

A step towards the UK smart grid?

2009-05-11T12:20:30+01:00

Three years after first announcing its intention to roll out smart meters across Great Britain, the Government has finally published plansof how it is going to happen. In brief, smart meters will dramatically change the way that meter readings are taken, see an end to bills based on ‘estimated’ consumption and enable householders to see exactly how much energy they are using. This final point is particularly interesting. One easily could have imagined the smart meter being in the same place as where meters currently reside; in a cupboard somewhere! However, the Government are proposing that alongside a meter, a free-standing display will be included to ‘provide real-time, near instantaneous feedback on consumption (in terms of energy, money or CO2)’. It will be interesting to see if innovative companies can link this requirement into existing technology, so the information could be displayed on a mobile phone, a television or a laptop, for example. It’s even possible to receive updates about your home’s energy usage via Twitter.

Rolling-out smart meters to 26 million homes and several million businesses is a huge undertaking, so how does the government propose to do it? Well, their preferred approach is to give responsibility for the provision of smart meters to gas and electricity supply companies. A single provider will be also appointed centrally to supply communications services to and from meters. From a business opportunity point of view, it’s fair to say this will be exciting some boardrooms this morning.

Ensuring a smooth and successful roll out over the next decade(s) is a huge challenge, but technology companies – working with the other parts of the sector – are more than up to the task. The consultation announced this morning raises a lot of questions and no doubt the wide range of stakeholders involved in this area – including Intellect’s Smart Metering Group – will be seeking to provide constructive feedback on the proposals. However, with eight documents to get through, some strong coffee a decent supply of biscuits may be order of the day.

Finally, it’s very pleasing to see the consultation state that smart meters are a ‘key step’ towards smart grids. I could not agree more. At a micro level, they will enable a smarter grid to literally have two-way communications with every home; at a macro level, they have significant transformational capacity. Today’s developments once again highlight what an exciting time it is to be involved with the sector. For more information about what Intellect is doing in this area, please get in touch.

By Ben Andersen-Tuffnell, Programme Manager.

At what expense?

2009-05-08T16:23:19+01:00

MPs’ expenses were back on the agenda this week, with the publication of the Cabinet Office’s expense claims since 2004 in the Telegraph.

Gordon Brown has blamed “the system” for the apparent discrepancies that have emerged, one of which related to his own expenses in 2006, when he claimed twice for a plumbing bill.

While Brown obviously believes the governance and structure of the MPs’ claims system needs to be overhauled, one can also wonder to what extent a decent IT system—both in ministers’ offices, and the House of Commons fees office—could have prevented such mistakes from occurring.

Evidently, keeping track of such a large number of claims in Parliament is no easy task, but a document and information management system could go a long way to prevent incidents such as duplicate claims and other clerical errors.

Few would disagree that the Prime Minister has had a difficult few weeks, and with the increasing public resentment over the claims system’s lack of transparency, an improved document management system seems a small price to pay to ensure that relatively minor expense claims hiccups don’t threaten the credibility and efficiency of the Government machine.

By Scarlett Graham, Programme Executive

Practice makes perfect, especially with a pandemic.

2009-05-01T17:15:19+01:00

There seemed to be less suspicion amongst commuters on the London Underground this morning as the papers reported a slow-down in the spread of the Mexican swine-flu outbreak.

Having been party to discussions on pandemic flu in my role as Defence and Security Programme Executive, I knew that a full blown outbreak could be devastating. With only a third of workers off sick, business would grind to a halt, money would run out at cash points, supplies would run out at shops in under two days and hospitals would be overwhelmed. For the moment we have got off lightly, but pandemic flu remains at the top of the Governments security concerns, above natural disaster and terrorist attack.

So in one sense swine-flu can be seen as a blessing – it is a timely reminder of what could be, and a prompt for Government agencies, organisations, businesses and citizens to work together to prepare in earnest for a pandemic.

Some good work is being undertaken by business continuity experts and voluntary organisations to prepare for such eventualities, but as always, more must be done.

What is often forgotten, and should be addressed in the post swine-flu fallout is the use of technology to improve emergency response. As we have seen this week, timely information is key to directing emergency responses, and in the case of flu-outbreaks requires multi-agency, international communications. These communications are currently hampered by a lack of information standards, and any detailed testing or analysis of the adequacy of national and international information flows in emergency situations. Work must be undertaken with the technology community to ensure that in the case of a sustained pandemic outbreak, the right people have the right information to act in time to save lives.

By Rachel Wrathall, Programme Executive.

Keeping to a tight budget

2009-04-22T17:13:30+01:00

As expected there were no big giveaways from Alistair Darling in this year’s budget. Whilst it was nowhere near as drastic as the recent second Irish budget in which taxes were hiked and budgets were slashed, the Chancellor gave a keen sense that the UK is battening down the hatches to weather the economic storm. But it was not all doom and gloom, and indeed there were plenty of positive points for the technology industry to take. So was this the first ‘Technology Budget’?

From what was said in today’s budget and the intentions laid out in Lord Mandelson’s ‘New Industry, New Jobs’ paper launched on Monday it’s clear government is positioning the high-tech industries as drivers of future growth and job creation in the UK.

There were several points in the budget which we welcome in particular.

We welcome action on STEM (Science, Technology, Engineering, Maths) skills that underpin the knowledge economy; we welcome action on trade credit insurance that will help local electronics and electrical retailers; we welcome the action to fill in the remaining gaps in broadband provision; we also welcome the new Strategic Investment Fund: all these are part of the picture of the UK’s future. We also welcome the temporary increase in First Year Capital Allowances, which we called for in our ‘Helping Innovation Flourish’ paper, to encourage business investment, including in telecommunications.

But significant areas of blank canvas remain. Next Generation Broadband, the crucial new infrastructure demand of the 21^st century so far, is given some necessary but nowhere near sufficient help. The case for a public private partnership on the 3i model is put out for review, at a time when high-tech start-ups, who could be the engines of future growth, risk perishing in the cold economic climate for lack of venture and risk capital. In both of these cases the time for reviews is all but over and the time for action is now.

By Daniel Smyth, PR and Public Affairs Executive

Digital Britain – a good first step

2009-04-17T14:45:20+01:00

If Lord Carter fixed all the points in the Digital Britain report, would this make the UK fit for purpose to compete in a global digital economy? This was perhaps one of the more forward looking points raised at today’s Digital Britain summit, where it was a who’s who of policy makers on the issue. But it was our very own Director General, John Higgins, speaking on a panel with Lord Carter, who ventured to say that this would not be the finish line for the UK.

While the work of Digital Britain is an ambitious, welcome and vital step, it is only the first rung in the ladder. Providing the right digital infrastructure and competitive environment will enable the public and private sectors to leverage the benefits to create growth, jobs and new services. But there needs to be more.

The real challenge for the UK is to get this work moving as quickly as possible and for government to begin looking at the broader policy strategy to deliver the next stage of the Digital Britain vision. It’s up to industry and government to work closely together and maximise the benefits that Digital Britain will bring us.

This means making sure that the public sector utilises the digital infrastructure and technology to reduce its burden on the tax payer and improve its performance, i.e. efficiency and new innovative services. Likewise business leaders must be aware and make full use of the technologies and infrastructure so that the UK economy is strengthened and that it is seen as the place to do business.

Only when we have a strategy to do this will businesses, government and citizens fully reap the benefits of what’s being laid down by the Digital Britain work.

You can Intellect’s report on Digital Britain at: www.intellectuk.org/digitalbritain

By Daniel Smyth, Press and Public Affairs Executive.

UK Manufacturing: Is it really all doom and gloom?

2009-04-08T15:34:06+01:00

One element of recession coverage that really gets under my skin is the oft repeated view that UK manufacturing has ‘fallen off a cliff’ recently. But what cliff are we talking about? Dover? Or, as one commentator recently put it, ‘not so much a cliff, more Mount Everest!”. In fact, the keener the author is to get coverage, the more dramatic the metaphor that is used.

I’m not denying that large elements of the sector are in trouble. It is not a good time to be making cars in the UK. But at the same time, to talk about all manufacturing in this light is at best a generalization and, at worst, simply incorrect.

If you talk to the electronics manufacturers involved with Intellect, and read the data we collect from them on a monthly basis, you get quite a different story. Many members in this area are lower down the supply chain and sell on a business to business basis, rather than directly to consumers. In general, their business model revolves around outsourcing, or contract manufacture of some kind. A recent poll of their customers noted that 59% of them expected to increase outsourcing in 2009. There is every sign that their markets are actually growing, rather than contracting. Customers want low-cost added value manufacturing options. Moving production away from in-house facilities saves money. And everyone wants to save money at the moment. Some members are even opening new facilities and expanding capacity to meet new demand.

Those electronics manufacturers even lower down the supply chain, especially those that make items like circuit boards (the base material of all technology products) are little bit more reticent. We’ve seen layoffs here, and order books are generally fairly flat. But there has been certainly been no crash in the same way there apparently has been in other manufacturing industries.

In essence, I’d say that UK electronics manufacturing is engaged in a bit of light down-hill skiing (probably on a blue slope) rather than, as the analysts would have us believe, involuntarily base-jumping off Mount Everest. Hopefully as the rest of UK manufacturing catches up, analysts metaphors will as well.

Thankfully, the most recent data shows that perhaps this process is beginning.

By Henry Parker, Programme Manager, Intellect

Why Marty Mcfly is not the future of banking

2009-04-07T09:50:48+01:00

No doubt a few of you will recognise this extract from Back to the Future II, courtesy of IMDB:

Marty McFly: [showing the two boys how to play the shoot 'em up video game] I’ll show you, kid. I’m a crack shot at this.
[shoots a perfect score with the electronic gun]
Video Game Boy #1: You mean you have to use your hands?
Video Game Boy #2: That’s like a baby’s toy!

Poor old Marty; he was using outdated technology in a futuristic age. I can’t help thinking we might all be feeling like this as we tap our keyboards in the not-too-distant-future if some exciting ventures in utilising voice recognition come to fruition. In the last week I have heard of two which particularly caught my imagination.

First, at the Digital Money Forum last week, a number of speakers were highlighting the potential of new voice recognition software, which could change the way we interface with our banks (or any other company). Imagine ringing up the bank, saying your name, and then being instantly transferred to a employee, who by the time the call has been connected, will have all of your details on screen. This is in contrast to the rather laborious process of entering security numbers, confirming details, answering security questions etc.

Second, over the weekend I saw an article about Google and ‘voice search’. In the words of a senior company’s executive, “We believe voice search is a new form of search and that it is core to our business.”

Although I’m not saying the end of the keyboard, touch-pad etc is nigh - it’s not impossible that our fingers might be given a rest as we use our voice to navigate the web, manage our banking, and, in the case of Marty, play computer games as well.

By Ben Andersen-Tuffnell, Programme Manager