Revolutionary firms making digital strides

With viral trends and social media strategy spreading faster than a superfast broadband connection, it is little wonder some companies are left lamenting their dial-up connections.

But it takes much more than the appointment of a Twitter guru to bring a firm into the 21st century.

Businesses are employing increasingly revolutionary approaches and drawing inspiration from the inherently democratic internet.

And it is the agile start-ups that are leading the way against flat-footed big businesses.

One groundbreaking firm that has taken a completely new approach to an age-old profession is Crunch Accounting.

Co-founder Darren Fell developed the idea for the company after having a bad experience with traditional accountants and restlessness with digital marketing.

He began by developing brand-new accountancy software.

But before long he realised it wasn’t just the software that needed an over- haul but the way the entire service was delivered. 

To reflect its modern, tech-savvy audience, the service needed to be more accessible, easier and, crucially, cheaper.

Darren Fell, co-founder of Crunch Accounting

Darren explained: “The key thing is putting yourself in the shoes of the customer.

“So many people are having bad experiences with accountants.

“I don’t want people to worry about the detail. I want it to be simple. I want it to be a customer-friendly model.”

Despite its burgeoning success over the last four years, the company has few credible rivals and is growing rapidly towards 5,000 customers.

The business is the fastest-growing accountancy firm in the UK and has attracted expert investors from Skype and Bebo.

By using intelligent software, they have managed to reduce costs. And its model of using in-house Cloud software can be applied to other professional services.

Darren added: “When we came out, all the traditional accountants tore us apart.

“They said it was disgusting and that you need to see the customer.

“But you don’t need to see the customer. People want to be able to send an email after work and get an answer the next morning. They want to be able to talk over Skype.

“I know people may try to copy our model because we’ve managed to deliver complex services with low prices and a high gross profit.

“And we could deliver other complex professional services such as law by using the same model.”

Online growth in traditional ways

Online reviews Other companies have used the internet to grow – though not always in obvious ways.

Checkatrade, which gives customers reviews of tradespeople in their area, was set up in 1998.

It claims to be the first company to use online reviews, a eureka moment which seems blindingly obvious in retrospect but which had never been done before 2001.

Harnessing the power of the internet to convey word of mouth, the Selsey company’s growth is inexorably tied to the internet.

But despite the easy accessibility of its reviews, the majority are still uploaded in the traditional way – by hand-filled cards.

Just 29% are made directly online – a stat founder Kevin Byrne reveals with a grudging acceptance.

Kevin Byrne, founder of Checkatrade

Kevin said: “My thoughts were that hand-filled cards would be a thing of the past and everything would move online.

“We ask everyone to make their comments directly online because it’s so much cheaper and easier.”

Rivals have tried to copy the company relying solely on online reviews.

But few have been able to compete with Checkatrade’s 1.1 million reviews.

And when it comes to modern marketing techniques, the company keeps it traditional.

He added: “When it comes to our basic business model I don’t need to diversify. Because customers always need tradespeople, I just need to keep track of how they look for tradespeople.

“Obviously digital and social media do play a role in that. But does it have a fundamental benefit? No it doesn’t.

“The thing that’s worked for us is traditional TV advertising.”

Workplace ‘sociocracies’

Another company is on the vanguard of forward-thinking and completely overhauling expectations of how modern business should work.

Nixon McInnes promotes “purpose- based business”, collective decision- making, risk-taking and top-to-bottom transparency.

The firm champions workplace ‘sociocracies’ and 'circles' over traditional hierarchal structures and job titles.

Its commitment to transparency and openness is inspired by the radical and democratising power of the internet in delivering freedom of information.

Co-founder Tom Nixon said: “We believe a good business needs a clear reason to exist. 

“We want to create meaning in business, to make it meaningful for a high purpose.

“It’s based on the belief that the internet is creating a world that’s more transparent and authentic for businesses to thrive.

Tom Nixon, of Nixon McInnes

“Work should be fulfilling, satisfying and meaningful and we are helping to bring about these positive changes.

“We also believe in autonomy and having the ability to act and be in con- trol of your own working life.

“We believe if we follow these values it will lead to profit.”

Everyone in the company knows how much their seniors earn and it has a ‘no secrets’ policy.

The ‘Church of Fail’ is a mocked-up ceremony aimed to break down the shame associated with failure and to create a culture where people take risks.

He added: “We believe most business need to change and become more transparent with the rest of the world.

“Companies that are losing money, talent or customers can create a big impetus for change.

“What we’re seeing is that these changes are being driven by smaller, agile companies.

“The pace of change is giddying. Small companies are seizing the oppor- tunity to change.”

Making token gestures towards the digital age will not do.

Cutting-edge businesses are expected to make radical restructures in the modern age.

Tom added: “The hierarchical military structure of business has started to creak at the seams.

“Processes can be incredibly slow with decisions passed down the ranks.

“Organisations need to be much more adapt- able and be able to change much more rapidly.”

Jobs at risk?

The rise of digital technology could make many jobs redundant in years to come, according to an academic report.

The idea that a whole swathe of workers could be replaced by commuters will make “uncomfortable reading” for professionals in Brighton, according to the Brighton and Hove Economic Partnership chairman Tony Mernagh.

‘The Future of Employment: How Susceptible are Jobs to Computerisation’ by C Frey and M Osborne looks how computerisation has affected western economies over the past 20 years and hazards an educated guess at what how workers will be replaced by digital technologies over the next two decades.

Dentists are safe but sales assistants in shops are almost certain to be decimated as are accountants, estate agents and call centre staff.

Tony Mernagh, Brighton and Hove Economic Partnership

Mr Mernagh said: “The article on the inexorable rise of digital technology will make uncomfortable reading for a whole swathe of workers that currently provide services to the public, including many professions that make up the Brighton economy.

“Of course, new jobs created by the development of new technologies will replace old jobs but the authors point out that few economies in the western world are preparing for this via improved educa- tion and training.”

The table on the right shows which jobs are under threat with a score of 1 representing certainty that computerisation will lead to significant losses over the next 20 years.

Brighton Digital Festival 2014

With the most successful, wide ranging and acclaimed Brighton Digital Festival taking place last year, preparations for 2014 are now underway.

A Town Hall meeting last week gave an update on plans Brandwatch has confirmed its involvement with support, resources, consultancy, evaluation and events as part of the Festival programme.

Katja Garrood, design director at Brandwatch said: "As a Brighton-based enterprise, a good deal of our success has been down to the exceptionally high quality of the Brighton digital scene.

“We really want to share this suc- cess, and being part of the Brighton Digital Festival gives us the opportunity to do this and helps to support the incredible hotbed of creativity and tal- ent that the community represents."

The Festival is the UK’s largest celebration of digital arts and culture, celebrates the conclusion of its greatest ever month-long programme.

With 174 events, averaging out at nearly six unique events every day throughout September, the festival grew by over 60% compared to last year.

More than 105 organisers were involved in 2013, with support from Arts Council England, American Express, RAP Interiors, local media partners Brighton and Hove Independent and co-ordination from Wired Sussex in association with Lighthouse.

Facebook's 10th birthday

With Facebook celebrating its 10th birthday this week digital companies are reflecting on a dramatically transformed sector.

Digital advertising spend in the UK surpassed £6billion in 2013 with ad budgets up 17.5% over the first six months to more than £3bn.

In comparison, in January 2005 the Internet represented a mere 3% of all marketing spend in the UK during the fourth quarter of 2004.

Jason Woodford, chief executive of Brighton digital marketing agency SiteVisibility, said while social media had become the preoccupation of advertisers, media and creative agencies, there was a question mark over the future of social media marketing.

He said: “There can be little doubt that social media platforms will continue to launch and thrive but the challenge for us all is where will it all go to over time? How different will marketing spend look in years to come?

“You can see how the evolution of the Internet and the introduction of Facebook has forever changed the landscape of business budgets globally.

“I can only predict that marketing spend is going to change dramatically once again over the course of the next few years as many start to realise the potential of mobile.

“There is a need to engage audiences on all screens and devices and as the UK’s biggest brands are expected to spend more on marketing to boost sales in 2014 as optimism among companies improves, I can imagine this will be top of the agenda.”