Post-Brexit UK: 3 Reasons why Digital Transformation & Innovation will make you a winner

Brexit is definitely an unfolding event in every aspect of the British Society. The world is equally reacting.?For two months plus, there’s been mixed reactions even when the journey is yet to start!

1.?The Government is transforming its digital assets to deal with Brexit outcomes

Nothing much is being heard from the government publicly, transformation and innovation are happening privately in government departments and agencies. The Home Office is a good case study here as they will feel a lot of the pressure from Brexit.

The Home Office is trialling a new online application system to speed permanent residence applications from thousands of EU citizens seeking to secure their UK immigration status in the run-up to Brexit.

The pilot programme, which will run for the next two weeks, is being tested secretly by a group of about 20 corporate clients ahead of a public launch expected later this year, according to people involved in the trial. The Home Office could receive?140 years’ worth of requests?in as little as 12 months. This programme will make naturalisation run smoother. This is a good example.

2. Brexit-proof: Consumer demand and overseas growth offer protection

The Market is a mixed bag. The?second-quarter GDP reports?in the UK add to the confused picture over the prospects for the British economy after Brexit

Rupert Pennant-Rea, the former Bank of England deputy governor, has also?sounded a sombre warning, He argued this week that the sharp fall in the?value of the pound, down?more than 15 per cent in trade-weighted terms from its level a year ago,?is the critical issue to watch.?

The bad news

• Lloyds laid off 3,000 staff, more may come
• Heaviest outflows recorded in Henderson asset management
• Loss of share value – up to 90% & revenue drop by 11.4%?at Johnston Press

Some Good News

• National Express;?a bus and rail operator, bucked the gloomy financial trend among its peers when it announced that annual pre-tax profits were up 9.7 per cent, buoyed by its extensive operations outside the UK.

The chief executive attributed the transport group’s performance to building up its earnings outside the UK, making it less dependent on the British economy. “The diversity of our cash-generative, international portfolio of businesses, where two-thirds of our earnings are generated outside of the UK, is a key strength

Operating profits in North America, where the company runs school buses and some contract transit services, rose 15 per cent to ￡45.2m, and in Spain and Morocco by 8.8 per cent to ￡32.3m. Group pre-tax profits were ￡73.2m, on revenues up 14 per cent to ￡1.1bn.

• Sky posted a 7 per cent rise in revenue and a 12 per cent jump in operating profits for the latest financial year.
• Domino's UK's biggest pizza delivery company increased its interim dividend by 17 per cent to 10.5p per share, after reporting a 21 per cent increase in underlying operating profits for the first half.

From the rounds of updates from ONS, FT, BBC etc, a trend is emerging in consumer demand and overseas growth/boom is key.?

?3.??Opportunity Knocks

As the events keep unfolding, Brexit is a fact that is providing a once-in-a-lifetime opportunity, albeit with some risks for proactive businesses.

Two events that were reported this week were an inspiration for me, it may inspire some innovative thinking in your organisation too:

• A South African bank has manufactured its own smartphone with a view to create a low-end disruption as well as promote higher adoption of digital banking amongst its own customers
• Standard Chartered Bank is rolling out video banking to remotely reach customers and prospects in a convenient location.

Digital Innovation and Transformation to broaden the horizon and geographical reach of your business may well be the answer to Brexit hiccups that are sure to hit most businesses.

To understand how Brexit fallout could be managed. Get in touch via [email protected], or call +44 203 097 1718?my team?will be happy to help?your organisation proactively deal with Brexit from a digital perspective.