Product Development – On the Internet of “Things”


Can your data be ethical?

As more and more products are evolving from how wslider_bg_271e manage information and data – there has been growth in products in the ethical market . It has served to drive sales of ethical goods and services, which are often more expensive than non-ethically produced products. According to preliminary economic estimates published by National Statistics, gross domestic product (GDP) was 3% higher in Q3 2014 compared with a year ago, while wage growth outstripped inflation for the first time in 5 years during November 2014, after rising by 1.3% in the third quarter of the year — 0.1 percent points higher than consumer price inflation during the same quarter.

  • Rainforest Alliance products have also continued to increase as a result of a growing availability within the UK, with sales of Rainforest Alliance-certified food products estimated to have risen by 47% during 2013.
  • Public scandals, such as the horsemeat debacle, as well as a growing mistrust of core bank brands following the LIBOR (London InterBank Offered Rate) scandal, the payment protection insurance (PPI) miss-selling calumny and growing outrage regarding banker bonuses following the recession, along with increased demand for transparency among big businesses, have resulted in the emergence of a much more ethically and environmentally informed consumer.
  • Sales of organic products have observed resurgence in recent years, following growing consumer demand for transparent product provenance in the light of the horsemeat scandal, as well as more flexible household budgets in line with the economic recovery.
  • Spending on micro-generation (i.e. household renewable energy systems) has increased by 50%, following the introduction of generous Government incentives, such as the Green Deal home improvement scheme and a sharp increase in solar power home installations during 2014.
  • Demand for green cars, which offer low-carbon emissions, has increased in recent years, driven by a revival in the new car market, as well as significant new product development (NPD) by several well-known car brands, such as Nissan, Toyota, Vauxhall and Renault, with the electric car market showing record growth of 143.9% up to the end of June 2014, according to figures compiled by the Society of Motor Manufacturers and Traders (SMMT).
  • The diversification and expansion of Fairtrade schemes to new product sectors, such as jewellery (in particular gold) has also helped to drive sales of ethical products in recent years, while other market sectors, such as eggs, coffee and bananas are increasingly dominated by ethical products.
  • In recent years, micro-generation (i.e. the generation of electricity or heat of a small-scale, typically for domestic or household use by methods that do not contribute to the depletion of national resources) has continued to increase, with National Grid Energy estimating micro-generation to have risen by 0.5 gigawatts (GW) during the past 3 years. Spending on micro-generation has also increased significantly across UK households, with Ethical Consumer magazine estimating expenditure on domestic renewable energy platforms to have risen by 50% during 2013 alone.
  • One of the most significant driving factors behind the trend towards more energy-efficient homes has been the UK Government’s Green Deal, which was first launched in January 2013, and offers long-term loans to homeowners to help them make energy-saving improvements to their home, such as the installation of insulation, draught-proofing and double glazing, or renewable energy systems, such as solar panels or heat pumps.
  • Other Government initiatives introduced with the aim of reducing domestic energy use in the UK include the roll out of smart meters, which allow users to more accurately monitor their energy usage and expenditure; and the Electricity and Gas (Energy Companies Obligation) Order 2012, which was introduced in 2012 and provides funding of around £1.3bn each year to support the installation of energy efficiency measures in low-income households and areas.
  • Industry analysts believe solar electricity could be cost competitive with gas by 2020, and estimate that around 10 million homes in the UK will need to install panels on their roofs over the next 6 years, if the country is to fulfil its renewable energy potential. If this aim was achieved, it would mean that a third of households in the UK would be generating energy from the sun, allowing the UK to produce around 6% of its annual electricity needs from solar power, with as much as 40% of energy being generated by such panels on sunny days during the summer, by the year 2020.
  • The drive towards energy-efficient homes is also thought to be having a knock-on effect within the property market, with research undertaken by Knight Frank, in 2014, revealing that houses which have a high Energy Performance Certificate (EPC) rating are now selling more quickly than they did in 2010.

Electric and low-emission vehicles have continued to gain popularity in recent years, following ongoing Government investment into charge points, as well as NPD from leading car brands. The latest statistics published by the SMMT show that 9,955 alternatively fuelled vehicles (AFVs) were registered in September 2014, representing a 56% rise on the number registered for the same time last year.

Building an Algorithm from Overproduction



Making too much of something – overproduction – is generally viewed negatively: it requires additional raw materials, energy, unnecessary work/effort, and waste handling; Runner moneyas none of these add value to the product, overproduction is often regarded as wasteful or quite literally waste if the excess is simply discarded.

Outside of highly automated processes and production lines, there will be waste. Companies often “err” on the side of safety for a production run and produce too much rather than too little which would result in an even more costly additional production run.

But why would anyone want to over produce, in a world were economies scales have for so many years allowed high volume low cost production per unit, one could say that any overproduction and its continuation is no more than a waste of economic resourc.e

Production houses more and more have to balance customer choice as part of the volume needed to create value, Customers are demanding products that are offering so much choice that they are becoming unique, – the world of customer choice has moved to customer customisation and the more customisation the customer demands they more the interact in the creation of the products they need.

Perhaps one other change that’s affecting the one fits all of high volume production low cost products is manufacturing has the ability to establish far more routes to market that was ever possible and create brands and products that can be sold at various parts of the product life cycle with services and delivery times built into every part of production innovation cycle.

With the development of new routes to market and the increase choice that customers are demanding the opportunities to develop processes that allow overproduction as part of extended range of unique product that allows higher value is creating smaller product life cycles that create higher over value.

With the development of newer routes to market and the demand for newer be spoke products the ability to overproduce can be targeted at the growing number of customers that are looking for more customised products: given sufficient quantities, you can think of this excess as “bespoke”, “limited edition”, or “Artisan” product.

Creating the artisan product

Let us look at coffee roasting. Coffee blends are roasted in batches (say 120kg), taken from one or more silos of raw commodity beans.

Given that many batches (up to 20 tonnes) can be roasted each day, how many potential artisan bags of coffee could be produced due to the excess of coffee roasted each day?

We can express the total weight roasted as the sum of the batch weight that is sold as a unit and the overproduction (the excess). Alternatively the overproduction can be expressed as


If the weight of a bag of artisan coffee is Weightbag kg (i.e. kg/bag), then the number of bags produced each day due to “overproduction” can be expressed as



(assuming that Weightroasted does not change).

Given that each Weightroasted is a blend of N silos of raw (commodity) coffee then each Weightroasted can be expressed as the sum of the amounts of coffee (in kg) taken from N silos as


where Weightsiloi is the amount of commodity coffee (in kg) taken from the ith silo.

Assuming that the mixing is uniform throughout the roasting process then the amount of commodity coffee (in kg) taken from the ith silo within a unit batch sold Weightbatch can be simply expressed as


Therefore the overproduction or excess in each batch can be expressed as



or the number of artisan bags that you can make from overproduction in a day can be expressed as


We assumed a constant Weightroasted throughout the day. If this is not the case then Numberbags/day per day can be expressed as


for a constant blend mix, constant Weightbatch, and a weight of an artisan bag of coffee Weightbag

Maximising your excess

Therefore if only weight is considered, for a weight of coffee roasted in each batch Weightroasted, (Weightbatch is fixed) you can increase the Numberbags by

1. Decreasing the weight of an artisan bag of coffee – Weightbag
2. Increasing the number of runs within a day with excess – Numberruns/day

In conclusion

The weight of raw coffee in each Silo is bought as a commodity at a known price. Optimising (minimising) the cost of a blend across the silos along with the production costs will make the Artisan coffee more profitable.


Extending our approach.

Our approach does not include factors such as production loss. These will consider within a future blog post.

The Food Industry – Brexit Scenarios

Now that the UK has voted to leave the European Union, what consequences and effects does it bring to the nation’s food industry, and the businesses under it? Economists and industry figures foresee the following:

1. The opportunity to grow food and drink exports faster.
Around 60% of UK farmers voted to leave the EU, citing its red tape on farming as their main reason. These include the impending ban on glyphosate, which is the preferred herbicide of UK farmers, as well as the Union’s ban on GMO crops. Without these, farmers will be able to grow their crops using their preferred methods.

2. However, leaving the EU could result in higher tariffs and trade barriers between the UK and the EU. What future trading arrangements would look like isn’t clear yet. According to Gary Kushner of Hogan Lovells LLP, the following scenarios are possible:
• EEA (European Economic Area) – like arrangement with the EU (e.g., Norway)
• Bilateral agreements with the EU (e.g., Switzerland) or (should no trading arrangement with the EU be agreed) The UK could be subject to tariffs that the EU applies to all other World Trade Organisation (WTO) members (30% tariff on sugars and confectionery, 20% on tobacco and beverages, 10% on fruit and vegetables, for example).
3. Moreover, food and drink sector could face potential supply chain disruptions.
Richard Morawetz, senior credit officer at Moody’s, said food companies that sourced and manufactured their goods locally would not be as affected as those that relied on imports. Major retailers such as Tesco, Morrisons, Marks & Spencer and Next, are focused on British sales, but their supply chains could be affected if the UK were to impose import tariffs on EU suppliers.

4. Food retailers and restaurants may be hit by higher wages.
Many food businesses run on immigrant staff, so the decision may curb their ability to recruit staff at lower wages from other European countries. Businesses that have had problems meeting their recruitment needs in the UK may also be hit. Food manufacturers and restaurants have the highest share of foreign-born workers, according to the Migration Observatory at the University of Oxford.

5. The food industry may benefit more from scientific advances in the UK.
The EU’s so-called scepticism of science has hampered progress in the UK food industry, according to Owen Paterson, leading Brexit campaigner and former secretary of state for Environment, Food and Rural Affairs. The decision will allow the UK to weigh both risks and benefits of new technology without being hampered by existing technologies in the EU.

The Insurance market in China


The growth of the financial products is growing in China and the regulation, as I understand is changing.

There is a growing need for a well-governed brand that links the economies in the West with that in the East in this space – and there are structures that can implemented here to add value in China.

Below are some points on China’s Insurance market:

  • China’s insurance industry has been something to behold. Assets managed by insurers have doubled in less than four years to 13.9 trillion yuan ($2.1 trillion). Their revenues from selling policies have accelerated, climbing 42% year-on-year in the first quarter of 2016.
  • The population will get much older in the coming decades, but the public pension scheme is still in its infancy. By supplementing public coverage with private policies, the government hopes that people may just manage to escape penury in their old age.
  • The government covers roughly a third of medical expenses; and insurance companies less than a tenth, leaving individuals to pick up more than half the tab themselves, according to Enhance International, an insurance consultancy. That is an especially heavy burden, naturally, for the elderly.
  • But excessively rapid growth, built on flimsy business models, risks doing more harm than good. There have been plenty of worrying signs. The most aggressive firms have scaled up by offering guaranteed returns of 6% or more on short-term investment products, an extremely risky strategy for what is supposed to be a sober and reliable industry.
  • This month regulators turned their attention to some of the insurers that have been among the boldest in expanding. First they sent inspectors to Sino Life Insurance Co, which has run down its capital in recent quarters. Then they went to Anbang, which has increased its assets some 50-fold over the past two years.
  • China has also overhauled solvency rules, which should force insurers to change the way they operate. Capital requirements had been based on simple gauges of size. Now they are much closer to the norm in developed markets, varying in line with how quickly policies turn over and how premiums are invested.

Data and Digital : BigOnIT’s Saudi Arabia Data and Digital Strategy (Part 3)


There are now opportunity for the development of a data brands to enter the Middle East and North Africa. As the region is tagged as the fastest growing, it presents both tremendous opportunity, but also tremendous risk. A partnership with a data company which adheres to globally recognized data governance and data privacy laws will enable a Middle Eastern company to take advantage of both growth opportunities, and the chance to develop stronger data privacy and protection policies, even as an individual company.

The quality of information in the world is soaring. And the need to store manage and develop data systems is critical. 

The deluge of data is already starting to transform business, government, science and everyday life. This deluge has huge potential for good, as long as consumers, companies and governments make the right choices about when to encourage flow of data, and when and how to restrict it.

With the Middle East and North Africa as the fastest growing region in the world for data growth, much potential is seen in this sector, but there is also much risk involved.

This strategy was crafted based on our study of the growth of data centres in the Middle East, as well as the data landscape in major countries in the region. Consequentially, we also took a look at how this affects government policies on data use, how Arabic countries rank globally for data governance and protection, and what can be done to improve them.


For my next post, I’ll be sharing with you my findings on the Health Care industry in Saudi Arabia and our recommendations specific to Data and Digital.

The Need for a Chief Digital Officer

White-Version (2)The need for companies to consider their information in a way that assist in the creation of new business models that manifest themselves on how organisations can create services and products from how they manage information and data is becoming more apparent.

Most companies have understood the need to hire digital experts — such as Chief Digital Officer, whose job is to spot potential challenges and create revenue opportunities from the information and data of the organisation as well as protect the company from new emerging models that can ultimately disrupt traditional business models.

For when disruption occurs — the CDO can give some degree of insulation from mainstream operations to save newcomers from being swamped by short-term imperatives.

The obsession with digital disruption has reached a flashpoint with the arrival of the smartphone, which is the platform for an invasion of older companies’ hallowed grounds. The success of online lift-sharing company Uber has become an example for entrepreneurs out to attack industries once thought immune to digital upheaval.

From taxi drivers to television networks, from filmmakers to restaurants and banks, the ways in which individuals and companies do business is metamorphosing so quickly that many companies find it hard to keep pace.

For all that, the need to overhaul business processes, forge digital links with customers and, in some cases, recast entire revenue models can still be pressing. A common error is failing to pay attention to the bigger picture, says Surajit Kar, a principal at management consultancy PwC. Distracted by day-to-day events, or by minor adaptations to existing businesses, companies become stuck on the incremental instead of looking at the real game-changing forces in their markets, he says.

The ways in which digital markets tend to evolve can catch out the unwary and opportunities are often to be found between existing markets, says Mr Kar. In industries such as healthcare and financial service, for instance, digital competitors often use technology to insert
Banner1themselves as intermediaries in different ways. Start-ups such as US based Practice Fusion, for instance, have used the spread of electronic medical records and other clinical data to create markets in the healthcare field, such as selling data to insurance and pharmaceutical companies.



Open Access Networks – Building Value

UK legislation for public Wi-Fi includes the Data Protection act, European Directive for Data Retention Regulations

BOI_Plaque_v1_R2_AS2009, the Code of Practice (Anti-Terrorism, Crime and Security Act 2001), Regulation of Investigatory Powers Act 2000 and Digital Economy Act, 2010, for which the venues such as companies that want to consider offering WI – Fi as a service have to consider.

Bigonit Build Data strategy networks and services that understand of new industry standards based on open access networks and also considers the current UK regulations, although public Wi-Fi legal compliance differs slightly by country in accordance with various local laws, the main common premise is the ability to track activity on a network back to the user.

Furthermore the strategy considers the ongoing trouble free support and on-going maintenance of such systems as an added value service to patrons of the hotel and considers a capital costs over time as an on-going quality network.

The strategy also conBOI_Header_650x150_v3siders payback periods based around the lifetime guarantee of the network as well as the opportunity cost on non-compliant open WI – Fi network to the overall business and service levels.

Open Access Networks White Paper

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Blended Finance – Funding For The Internet Of Things – Unlocking the Value of Data

The Internet of Things is creating opportunities not only on how we attract resources and manage project funding – it allows us to blend various parts of the finacial system to create opportunities as well as develop opportunities  and targets them to various layers. The internet of things is bridging gaps in our financial systems and it is allowing funding to be tailored for the various layers of the Financial system. Below I describe the said layers in further detail:

Government layerBusiness Model

This is an important part of the Strategic Pipeline as well as of the ongoing product and investment pipe line. Government initiate, funding and contracts are the driving force of economic growth — this layer of the business model allows the strategic plan to be developed into an Operational Business plan to be presented to financial institutions for funding. At this layer, timing is important; this covers government plans and access to government objectives both long and short term. It is also important to be recognised within government cycles.

Funding for exits at this level to allow long term odjectives to acceved as well help establish technologies and processes that can create economic value– Grants , Subsidy and development assistance

Financial layer

This layer allows the introduction of governmental projects into the financial system at an early stage. The financial system will create funding opportunities through a mixed blend (Blended Finance). This combines different types of finance of different funding methods and developing layers of funding types – from Government Funding, International Subsidy, Bank and Private Equity, Private banking, and in some cases section funding, according to the type of the project and the financial requirements of a given project.

Firms Layer

This layer allows the operational plan to implemented – with a operational base of contractors – that can provide operational support and delivery to the business plan and the operational project as well as Joint Venture Partnership and development. This is a flexible layer that can create, develop and risk-take in projects. This layer allows commercial risk to be defined better and apportioned to various parties that make up the Financial Layer. It also introduces stronger partnership, collaboration and Joint Venture agreement to be implemented.

Prosumer Layer

This is a layer that allows extra function to be added to the model. Funding and other project resources can be packaged and distributed at this layer, such as crowd funding. This is a layer that also allows product development and distribution.

Customer Layer

Also refers to the user layer, customer layer, or the layer that consumes the products and services. This layer drives the market and it allows product and service development.



Health Care Systems – The New Digital Market Place in the Middle East

Health systems consist of all the people and actions whose primary purpose is to improve health. They may be integrated and centrally directed and over time the global health care industry is going through a period of “glocalization,” through partnerships Creating flexibility in Health Care Systems,

Business Model

This Flexibility thought data and digital technology has developed new medical insights from crunching real-time activity and biometric data from millions of potential users. Allowing medical treatment to be delivered remotely, reducing the overall cost allowing more adaptive services as well as developing quality regulation and c ompliance

Saudi Arabia has developed enormously over the last two decades and are well placed to take advantage the new digital market place to create an electronic health strategy working with countries such as Scotland in the UK that are positioned to meet this challenge and are already doing so with advanced, intuitive and integrated digital health solutions.

These digital solutions are already integrated into Countries national health system as robust heath care components and are being exported all over the world including China,

These services can be better developed allowing partnership for the Saudi Arabia – with the help of an intermediary better able to bridge the understanding of supply and demand

Further  more the development of innovation from this digital market place also allow delivery of Health care systems into new emerging markets of the Middle East, North Africa and Asia both as a Service to Augment the National Services but also as a Independent Business model to be delivered under a private health care inactive into the GCC countries North Africa and Asia