Leveraging disruption to grow: A masterclass on innovation at KPMG

“INNOVATION is not always about digital, but it is about improving culture to encourage innovation,” said Lee Stafford founder of Plusnet at the inaugural KPMG Enterprise Masterclass.

The leadership event chaired by TheBusinessDesk.com and COPA Summit founder David Parkin was the first in a series of Enterprise events, this one focusing on ‘leveraging disruption to grow.’

It brought together three entrepreneurs from different backgrounds and sectors, including Robert Barr, chief executive of building sector suppliers Arran Isle, Simon Tutt, finance director of Xercise4Less and Mr Strafford, former chief executive of Plusnet.

KPMG experts were on hand to offer their advice and opinions on everything from funding to the macroeconomic landscape at the firm’s new offices at Sovereign Square.

Ian Beaumont, KPMG’s head of Enterprise in Yorkshire, said:”KPMG Enterprise engages with those leading privately owned mid-market businesses in Yorkshire on issues that influence their growth plans. We have started these masterclasses to support enterprise in the region.

“Given nearly one in three CEOs expect their business to be significantly transformed in the next three years we know that discussing the disruptive forces influencing the bottom line and how to equip organisations for innovation and growth is highly relevant and it was indeed a lively debate, providing challenge for leaders to take back into their business.”

Of the room full of entrepreneurs at the event, 64% of those business people said that innovation was very important to the business, though most shied away from admitting it was a core component of their strategies.

48% of the entrepreneurs and business owners in the room declared themselves to be digital adopters, waiting until technology is proven until they take it up.

Simon Tutt of Xercise4Less said: “We at Xercise4Less would consider ourselves digital pioneers. Our 250,000 members like technology, they are largely in the age range of 18-30, they like wearable tech and have smartphones.”

The company is launching an exercise at home offering, which involves live streaming classes into clients homes through smart TVs and tablets, due to analysis of their customer base, their habits and what they want.

Mr Tuff continued: “The power of being a disruptor is that you can change the way your industry works, and then cater for that demand.”

He also says that most of their customers (a whopping 90%) come through referrals. Mr Tuff continued: “10 years ago, no one cared about customer service. Now with the internet, a bad review could materially affect your performance.”

Mr Barr however took a different approach due to the nature of his business. He said; ” I don’t want to be on the leading edge of technology,” saying that the majority of his customers liked to buy over the phone, with some even preferring fax.

He carried on: “We want to work with pioneers, but not cut our business off at the knees, and we don’t want to drive change for the sake of change. Performance needs to be measured on customer demands and wants. The silent majority is still learning on the go, and not everyone is tech savvy.”

Customers and their habits are changing the focus for businesses in how they market themselves, but also in their internal processes and products.

The room was asked how important customer experience was to their business plans, and 79% of the entrepreneurs there said it was a core strategy.

Nathan Beaver, customer & growth director at KPMG Enterprise, said: “We’re in the age of the customer. Reports have shown that businesses now complete on customer experience, and businesses with high levels of customer satisfaction outperform rivals four times over.

“If you’re talking about digital, you’re talking about customer service.” Mr Stafford agreed, he said: “Millennials want on demand, and it is this that is disrupting every sector. The context to this is that business is not local, national, then international anymore. Business is global.”

Representatives from KPMG said that UK plc spends £18bn on improving the customer experience every year.

But, as Hamish Taylor, the “master thief” and keynote speaker at the event said, innovation and disruption in your industry does not necessarily have to be digital.

The dynamic speaker Mr Taylor spent time at P&G, Eurostar, BA and Sainsbury’s Bank. He is named the “master thief” because of his habit of stealing ideas from one environment to use in another. In his career he has used Disney queuing systems to revolutionise airports, and recruited yacht interior designers to design the seating in British Airways planes.

He asked: “Customers are driving our behaviour, but what is driving theirs?

He stressed the importance of being smart about what the customer wants, whether you operate digitally, offline or both. “Preconceptions are the enemy of customer insight – though the more senior we are, the farther away we get from the customer,” he said.